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Community Broadband Media Roundup - June 15, 2015

This week's big news came out of Washington, specifically Seattle. The city just published a report examining the feasibility of a Chattanooga-type citywide municipal fiber network. The report and related materials are available here; read the news release here. In short, duplicating a Chattanooga-type approach appears too risky given the likely response from incumbents Comcast and CenturyLink.

Seattle

Public Internet is supposed to lower prices. In Seattle, it could work too well by Brian Fung Washington Post

Is Muni Broadband Feasible in Seattle? Not Likely, Report Finds by Colin Wood, GovTech

The numbers don't bode well for proponents of municipal broadband in Seattle, but the city has other plans.

“The broadband market has been changing incredibly fast just in the past six months, since the president mentioned the need for strong broadband access in his State of the Union address," he said. "And we’re starting to see some interesting joint ventures that allow cities to meet their policy objectives around equity and around economic development through broadband."

Seattle councilmember calls for ‘mass citywide movement’ against Comcast and CenturyLink in support of municipal broadband by Taylor Soper, Geekwire

GeekWire Radio: Amazon meeting hijacked; Twitter shakeup; and the future of municipal broadband by Todd Bishop, GeekWire

Cost of municipal broadband for Seattle less than estimated by Daniel Beekman, Seattle Times

Building a municipal broadband network in Seattle wouldn’t cost as much as the city once thought, but the city would still need additional funds. 

Bad News For Municipal-Run Broadband Internet by Ross Reynolds, KUOW

Report says municipal broadband too expensive for Seattle to build alone, Capitol Hill Seattle Blog

Media Roundup By State

Missouri

Gigabit-speed Internet comes to downtown St. Louis By David Nicklaus, St. Louis Today

New York

A New York State of Megabits by Susan Crawford, Backchannel

Will a half-billion dollar investment in internet infrastructure put NY in the national lead? Only if its leaders put muscle behind the dollars.

North Carolina

For Wilson's Greenlight Community Broadband, fiber waiting game in full swing by Lauren K. Ohnesorge, Triangle Business Journal

The interest is there, specifically from farmers, he says. One current Greenlight customer wants to expand his commercial farming operation into an adjacent county, and needs the high-speed service to run the business, Aycock says.

“It’s not just about the residential folks in the rural areas,” he says. “It’s also about agriculture."

Washington

High Tech, High Rec: Pend Oreille County works to connect work with play by Mike McLean Spokane Business Journal 

The Community Network System opens the option for people to live in Pend Oreille County and have access to a rural setting or larger tracts of land, he says.

Alex Stanton, a principal at Newport-based information technology company Exbabylon LLC, says, “Having fiber makes it possible for me to do my job.”

It’s also a big selling point when it comes to recruiting employees, Stanton says.

Without the fiber network, it was more difficult to convince qualified IT candidates to come to Newport.

“A lot of talented people are living in Spokane, Coeur d’Alene, Liberty Lake, and Seattle,” he says. “Most highly technical people want really good Internet service at home. It’s so accessible in metropolitan areas, it’s become a staple commodity.”

Co-Mo Cooperative Facing Off With Subsidized CenturyLink in Missouri

Parts of rural central Missouri have some of the fastest Internet service available thanks to fiber service from Co-Mo Electric Cooperative and United Electric Cooperative. The two have worked together to bring gigabit FTTH to cooperative members in central Missouri. Now that they have proven that people and businesses want high capacity connectivity, CenturyLink is about to enter the scene. The company plans to use millions of dollars in Connect America Funds (CAF) to build in areas already served by the cooperatives.

After years of planning and hard work, Co-Mo and United are not taking the threat lightly. They have filed challenges with the Wireline Competition Bureau but CenturyLink's Inside-the-Beltway power has thus far served them well. The Wireline Competition Bureau denied a challenge by Co-Mo and United but the decision appears to contradict established policy. Co-Mo and United recently appealed to the FCC asking them to review the Bureau's Order allowing CenturyLink to use over $10 million in CAF. [Read the Application for Review here.]

CenturyLink argues that Co-Mo and United are not providing voice services because they are working with a third party, Big River Telephone Company, to bring VoIP to members. If this were true, it could disqualify them as providers and lend credence to the argument that there are census blocks in the area that are not served. Because Co-Mo and United install, take phone orders for subscribers, and service phone switches, they should qualify as a provider of land line voice services. 

CenturyLink also asserted that census block information showed areas unserved even though those areas now have access to fiber connectivity from Co-Mo and United. General Manager of Co-Mo Connect Randy Klindt told us that the timing of their build prevented Co-Mo from providing an active customer in each block, but that service is available to people who live there. Even though it is not a requirement, Co-Mo and United now have detailed information that prove people in those census blocks can, and do, take FTTH service.

Co-Mo and United waged successful challenges for similar CAF awards to AT&T and Windstream. CenturyLink appears determined to use tax subsidies to build what will likely be only a fraction of the speed and reliability of Co-Mo or United Cooperative networks infrastructure. Unfortunately, CenturyLink's usual modus operandi - offering cheap intro rates to lure customers away from local providers like Co-Mo and United - could harm new investment in high speed networks.

Klindt also summed up the larger policy concern in an email:

The commission’s directive was to ensure that CAF support should not be used to build broadband in areas already served by an unsubsidized competitor...This money should be used in legitimate unserved areas, not areas with gigabit residential service available.

Learn more about Co-Mo Cooperative and their fiber network, Co-Mo Connect, in episode #140 of the Community Broadband Bits podcast where Chris interviewed Randy Klindt.

Santa Fe's Targeted Fiber Investment - Community Broadband Bits Podcast 152

After Santa Fe found its residents and businesses were often paying the same rates for connections at half the speed of peers in Albuquerque, the City began investigating the local broadband market. This week on Community Broadband Bits, Sean Moody joins us to discuss the situation and what Santa Fe is doing to spur more investment.

Sean works in the Economic Development Division of the City as a Special Projects Administrator. He explains the bottleneck in middle mile access that allowed CenturyLink to charge higher rates for backhaul than are common in similar communities.

The City decided to invest $1 million in a new fiber link that would bypass the choke point and allow various independent companies to have a better choice for access to the wider Internet. Along the way, the City partnered with the state for additional benefits.

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

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

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

Small Texas Town Don't Need No Stinkin' CenturyLink

The people in Kemp, population 1,100, have officially said "adios" to CenturyLink and now give their business to a local wireless provider, reports Government Technology. According to the article, the community grew tired of slipshod service and repeated service interruptions:

At one point, the city lost its Internet connection for five days. “That was the last straw because that was detrimental to us, because we depend on the Internet so much more, especially with our phone system," said [City Administrator Regina] Kiser. "We had just gone with the voice over IP [Internet protocol] when our system went down for five days, so you try to call city hall about various things, including the police department, and there was no phone. So, that was horrible.”

After a year of requests from the municipality for better service went unheeded, government officials decided it was time to make some changes:

“If you’re a government entity and you call in, they send you into cyberspace somewhere and your phone just rings and rings and rings, and I guess there’s just not any commission to be made on cities from what I’m understanding,” Kiser said. “This problem’s been going on for about a year, as far as not having the power we need to run our court program. So we tried, but it was just impossible to deal with CenturyLink.”

Kemp now works with One Ring Networks, where they receive service for a rate of $450 per month. There was no installation charge and in exchange, One Ring Networks is able to expand its network in the community. It now has the opportunity to sell service to residents and businesses in Kemp.

Unlike the typical "up to" speeds the big incumbents offer, One Ring Networks claims it "carves out" 5 Mbps download and upload for each subscriber, says Kris Maher from One Ring Networks:

“With the other carriers, that 10 Mbps by whatever is a best effort service, which means it can go up to 10 Mbps, but 10 Mbps isn’t guaranteed. Ours is right at 5 and it’s always going to be at 5, no matter who else is on our network.”

Kiser notes that residents are happy with their new provider and that, despite a brief delay caused by inclement weather, the upgrade was a simple task:

“CenturyLink’s been the only game in town for so long, they took advantage of the situation and they’re probably freaking out now that they have some competition for the first time,” Kiser said.

Longmont's NextLight Offers Businesses, Residents Third Fastest Internet In the U.S.

Ookla finds the third fastest Internet access in the U.S. is located in Longmont, Colorado, reports the Times Call. NextLight, Longmont's gigabit municipal fiber network, is the source of the increase in speeds, driving Longmont's Internet access speeds far beyond any other service in the state.

Ookla clocks average download speed in Longmont as 105 Mbps, which includes all providers in the community. Incumbents Comcast and CenturyLink are dragging down NextLight's average download speed of 221 Mbps. Statewide, Colorado's average is 40 Mbps.

According to the article:

Ookla shows Internet speeds in Longmont shooting up in January and February, when LPC crews began hooking up customers to NextLight in earnest. 

NextLight continues to attract residential and business customers. In February, NextLight announced it would be hiring more install crews to meet the high demand for connections. Places without the speed, affordability, and reliability NextLight can offer will find themselves at a disadvantage as economic development increasingly relies on next-generation networks.

The Times Call spoke with Bret McInnis, vice president for information technology for Circle Graphics. The local business switched from CenturyLink to NextLight because it needed better connectivity. Before taking service from NextLight, their maximum capacity connection was 50 Mbps download or upload and it wasn't enough:

Because the images for the canvases use high-resolution photos, they are sent in large files that can range from 100 to 300 megabits in size. The company prints anywhere from 5,000 to 20,000 canvases a day during the busy holiday season.

"We've got more bandwith," McInnis said, standing in front of the five tall black towers of computing equipment that make up the business's data center. "So the NextLight fiber feeds right into this and we used to see peaks with CenturyLink ... you would see periods when we were bursting at our capacity."

Switching to NextLight, McInnis said, means employees can download and upload the high-resolution images much more quickly.

"Now, we can't really overuse it and you don't see peaks like you used to," McInnis said. "That reduced latency, which means we get the files faster, which means we can print faster and get it to the customer faster. So that's the end result."

Tom Roiniotis, Longmont Power and Communications Manager, notes how the Ookla recognition brings the community one step closer to a  critical goal:

"One of the reasons we're doing this project is to strengthen us from an economic development perspective," Roiniotis said. "There are people who access this (Ookla) information when deciding where to locate." 

Ammon Brings Local Connectivity to Idaho Schools as State Education Network Goes Dark

The City of Ammon's municipal fiber network recently stepped in to provide primary broadband access for School District 93 as the state's educational network went dark reports Local News 8. Watch the video of local coverage below.

When a judge ruled last year that the Idaho Education Network (IEN) contract between the state Department of Administration was void, an education broadband crisis loomed across the state. As the drama played out, however, local networks such as Ammon's muni, have come to the rescue to keep students connected.

Ammon Mayor Dana Kirkham described an attitude characteristic of municipal networks:

"I think it's just something we do in the spirit of collaboration, and I think that's always important because when we talk about the school district and the city it's all the same people, and so anytime we can keep costs down it benefits everyone involved," Kirkham said.

CenturyLink and Education Networks of America (ENA) were providers under the contract voided last year. As CenturyLink and ENA cut off service to schools, forcing them to negotiate their own contracts, they have discovered better, more affordable broadband from local providers like Ammon.  A recent Idaho State Journal reported on several school districts:

The state, under the now-void IEN contract, had been paying Education Networks of America more than $6,000 a month for a 20 Mbps Internet service to Rockland School District. The school district will pay less than a third of that cost for a new 100 Mbps service next year.

The State Journal also discovered that numerous school districts had used fiber optic service from local providers but were forced to switch to slower service in order to obtain the IEN reimbursement. In order to get the reimbursement, West Side School District had to switch from fiber from Direct Communications, a local company, to a slow copper T1 connection from CenturyLink:

Once the IEN contract was in place, the Idaho taxpayers were saddled with paying over $8000 a month for outdated copper service to that same location.

[Direct Communications Marketing Director Brigham] Griffin said Preston [School District] was in the same boat. It had been getting fiber-optic Internet from Direct Communications, but had to switch to copper to have the state pick up the tab.

“Preston School District will now receive double their previous speed for about a fifth of the monthly cost,” Griffin said.

Though it is incredibly frustrating to see how Idaho has hurts its schools while funnelling extra tax dollars to CenturyLink, it is not as rare as you might think. Many states have these kind of "deals" with the large phone companies. We have long covered the depressing story in Wisconsin, where AT&T has successfully lobbied to hobble WiscNet, an arrangement that brings tremendous cost savings to local budgets and better connections to schools. 

This is more evidence for a point we have long made: building better networks does not necessary have to cost a lot more. We spend so much money inefficiently that eliminating these crony capitalism deals would free up significant funds to be spent more wisely.

In Ammon, Mayor Kirkham summed up the situation:

"This is always an argument for local control so whenever you have local control, then you aren't at the mercy of the decisions being made higher up the ladder and so this is one of those instances where you see that being played out," Kirkham said. 

Video: 
See video

Community Broadband Media Roundup - April 12

Community Broadband News Around the Nation:

Colorado

Community and candidates react to Grand Junction election results by Lindsey Pallares, KJCT-TV

“It’s an indication that people really want to see us have better fiber in this city so we'll step back as a city council and see what are next steps to go forward,” says Mayor Phyllis Norris.

Connecticut

Connectict is taking steps to become the nation's first gigabit state. You can also check out our Community Broadband Bits episode 118 for more on how they're doing it.

At Least One State has a (Fiber) Backbone by Susan Crawford, Backchannel

Who’s on track to get citizens high-speed Internet? Hint: it’s the only state with the word “connect” in its name.

How Connecticut set itself up to be the first gigabit state by Colin Neagle, Network World

Georgia

PTC to get into fiber-optic broadband business? by Ben Nelms, The Citizen

Maine

New group forms to support faster Internet in Maine by Darren Fishell, BDN Staff

Dickstein said the group has been organizing for several months in advance of the legislative session that includes about 35 bills dealing with broadband expansion in the state. Learn More: mainebroadbandcoalition.org

Massachusetts

On the Grid: last-mile LeverettNet Connections being made to households by Paul Franz, The Recorder 

The lighting of LeverettNet marks the first “last-mile” network to connect to the Massachusetts Broadband Institute “middle-mile.” The fiber-optic network design provides upload and download speeds of 1 gigabit per second.

Shutesbury, Wendell first Wired West towns to reach subscription threshold for high-speed Internet by Mary Serreze, The Republican 

A Decade Later, Mass. Broadband Coverage Gaps Persist by Karl Bode, DSL Reports

It’s time for western Mass. to get up to broadband speed by B.J. Roche, The Recorder

Webb’s commute is a common ritual — people regularly drive to a library or town hall parking lot for a high-speed Internet connection. At night, you sometimes can see us sitting in the passenger seat side of our cars, uploading a work project or downloading a software update, faces lit by the glow of a warm laptop. It’s not just a question of which movie to stream on Friday night, but whether there’s enough satellite bandwidth left this month to watch it.

Minnesota

‘Rural agenda’ without broadband is rural sham by Aaron Brown, Minnesota Brown

This last year has seen a small but encouraging spurt of state investment into rural broadband on the Iron Range, but it was just the starting bell, not the final buzzer on what needs to happen

... I understand that Republicans don’t trust government. That does not excuse action to eliminate efforts to expand broadband without new ideas to replace them. I wrote earlier today about the perils awaiting places like the Iron Range without broadband and economic diversification. The same is true throughout rural Minnesota. As was true 100 years ago, we need leadership and respect, not promises and exploitation.

US Internet's fiber spreads across south Minneapolis by Adam Belz, Star Tribune

“There are good reasons Comcast should be more afraid of USI,” [Chris] Mitchell said. “Comcast competes with CenturyLink around the country. The cable companies have a history of duopoly — of a soft competition rather than hard competition because they recognize that a rough and tumble competition between the two would hurt each more than each is likely to gain.” 

The cable war is coming to St. Paul by Peter Callaghan, MinnPost

CenturyLink aims to bring more competition to Twin Cities cable-TV market by Shannon Prather, Star Tribune

FCC fines CenturyLink $16M over multistate 911 outage by Riham Feshir, MPR News

New Jersey

Village-wide wifi getting close look by Charles A. Peterson, Newark Advocate

"From the standpoint of a community that basically is a knowledge-based community, it would be nice if we had a little faster Internet service available," Wilken said. "When a community earns its bread through knowledge, it's kind of nice to have that kind of high-speed stuff."

Oregon

Google who? Oregon cities want their own fiber networks by Mike Rogoway, The Oregonian/OregonLive

"We realized we're too small for Google to come to us," said SandyNet general manager Joe Knapp.

Budget plans called for signing up a third of the city initially, growing to 50 percent over several years. But Knapp said well over 50 percent of the homes in the city have already come aboard.

Oregon cities look to bypass Google Fiber by building own 1 Gbps networks by Sean Buckley

"They may be a benign company but they would still be a monopoly," said Lake Oswego city manager Scott Lazenby in an article in The Oregonian. "And monopolies charge what they can."

Vermont

Broadband bills take a number in house commerce by Erin Mansfield, VTDigger

“We’re just a huge, underserved region, but we have a lot of kids who can’t do their homework,” said CJ Stumpf of East Randolph. Stumpf said a child in her town was issued an iPad at school and used it as a paperweight at home because he had no Internet access.

Washington

CenturyLink Apologizes for Misleading Customer About Its Gigabit Internet Service by Ansel Herz , the Stranger

Google Fiber

Google Fiber Is More Important Than You May Think by Jamal Carnette, Motley Fool

Google is forcing big broadband providers to boost speeds by Timothy B. Lee, Vox

Other Broadband News

CLIC Sets Muni Broadband Protection Event: Wheeler to Speak at Broadband Communities Conference by John Eggerton, MultiCHannel 

US broadband providers wake up to the need for speed by David Crow, Financial Times New York

Seth's Tale of Comcast Woe Perfectly Illustrates Many Internet Policy Problems

Ideally, working from home allows one to choose the environment where he or she can be most productive. In the case of Seth that was Kitsap County in Washington State. Unfortunately, incompetence on the part of Comcast, CenturyLink, and official broadband maps led Seth down a road of frustration that will ultimately require him to sell his house in order to work from home.

The Consumerist recently reported on Seth's story, the details of which ring true to many readers who have ever dealt with the cable behemoth. This incident is another example of how the cable giant has managed to retain its spotless record as one of the most hated companies in America

Seth, a software developer, provides a detailed timeline of his experience on his blog. In his intro:

Late last year we bought a house in Kitsap County, Washington — the first house I’ve ever owned, actually. I work remotely full time as a software developer, so my core concern was having good, solid, fast broadband available. In Kitsap County, that’s pretty much limited to Comcast, so finding a place with Comcast already installed was number one on our priority list.

We found just such a place. It met all of our criteria, and more. It had a lovely secluded view of trees, a nice kitchen, and a great home office with a separate entrance. After we called (twice!) to verify that Comcast was available, we made an offer.

The Consumerist correctly describes the next three months as "Kafkaesque." Comcast Technicians appear with no notice, do not appear for scheduled appointments, and file mysteriously misplaced "tickets" and "requests." When technicians did appear as scheduled, they are always surprised by what they saw: no connection to the house, no Comcast box on the dwelling, a home too far away from Comcast infrastructure to be hooked up. Every technician sent to work on the problem appeared with no notes or no prior knowledge of the situation.

It was the typical endless hamster wheel with cruel emotional torture thrown in for sport. At times customer service representatives Seth managed to reach over the phone would build up his hopes, telling him that his requests were in order, progress was being made behind the scenes, that it was only a matter of time before his Internet access was up and running. Then after a period of silence, Seth would call, and he would be told that whatever request he was waiting for was nonexistent, "timed out," or in one instance had actually been completed.

Seth usually had to be the one to make the call to Comcast for follow up. There was one notable exception, however on February 26th:

Oh, this is fun. I got a call from a generic Comcast call center this morning asking me why I cancelled my latest installation appointment. Insult to injury, they started to up-sell me on all the great things I’d be missing out on if I didn’t reschedule! I just hung up.

In mid-March, Comcast discussed the possibility of building out its network to Seth's house but he would have to pay for at least a portion of the costs; he was interested. Pre-survey estimates were up to $60,000. A week later, Comcast contacted Seth and told him that they would not do the extension even if Seth paid for the entire thing. 

Comcast was not the only provider Seth contacted. When he first learned that Comcast did not connect his home, he contacted CenturyLink. He was told by a customer service tech he would be hooked up right away but the company called him the next day to tell him that CenturyLink would not be serving his needs. They were not adding new customers in his area. 

Nevertheless, he was charged more than $100 for service he never could have received. Seth had to jump through hoops to get his "account" zeroed out. CenturyLink's website showed that they DID serve Seth's address, reports the Consumerist and, even though they have claimed to have updated the problem, the error remained as of March 23rd.

Official maps created by the state based on data supplied by providers, are grossly incorrect. As a result, Seth's zip code is supposedly served by a number of providers. While that may be true on paper, it doesn't do Seth much good. A number of those providers, including Comcast and CenturyLink (as Seth is painfully aware) do not serve his home. Satellite does not cannot the VPN connection he needs due to latency inherent in satellite Internet connections. He is using cellular wireless as a last resort now, but only as a short term solution because it is limited and expensive.

Ironically, Seth's new home is not far from the Kitsap Public Utility District fiber network. Because state barriers require the Kitsap PUD to operate the network as a wholesale only model, however, Seth cannot hook up for high-speed Internet. He would only be able to connect if a provider chose to use the infrastructure to offer services to him.

Here we have the perfect storm of harmful state barriers, corporate gigantism, and  "incumbetence." From his blog:

I’m devastated. This means we have to sell the house. The house that I bought in December, and have lived in for only two months.

I don’t know where we go from here. I don’t know if there’s any kind of recourse. I do know that throughout this process, Comcast has lied. I don’t throw that word around lightly or flippantly, I mean it sincerely. They’ve fed me false information from the start, and it’s hurt me very badly.

This whole thing would have been avoided if only Comcast had said, right at the start, that they didn’t serve this address. Just that one thing would have made me strike this house off the list.

I don’t know exactly how much money I’m going to lose when I sell, but it’s going to be substantial. Three months of equity in a house isn’t a lot of money compared to sellers fees, excise taxes, and other moving expenses.

So, good bye dream house. You were the first house I ever owned, I’ll miss you.

But putting all the blame on Comcast ignores the failed public policy that allows Comcast to act like this. Providers like Comcast lobbied legislators and DC to ensure no map could be created that would be useful. The carriers have refused to turn over data at a granular level that would prevent these mistakes from happening. And whether it is the states, the NTIA, or the FCC, they have wasted hundreds of millions of dollars on maps that do little more than allow carriers to falsely claim there is no broadband problem in this country.

And we have utterly failed to hold our elected leaders to account for this corrupt system. Something needs to change - but it won't until people stand up and demand an end to these stories.

Bozeman City Commission Approves Master Plan: "It's A No-Brainer"

Bozeman elected officials voted unanimously on January 26th to approve a recently completed master plan and take the next step to deploying publicly owned open access infrastructure. We discussed the Bozeman approach in a recent podcast with city staff and a local business.

The Bozeman Daily Chronicle reports that local business leaders attended the City Commission meeting to speak in favor of the initiative, including the local Chamber of Commerce president, representatives from local tech companies, and the director of the Downtown Bozeman business coalition.

Commissioners heard comments from supporters, CenturyLink, and local provider Montana Opticom. Even though Jim Dolan from Montana Optimcom expressed some concerns about some engineering issues, the local ISP rep still said, "It’s a great initiative and it really will help the valley.” The Chronicle reports commissioners questioned supporters for about an hour before voting to move forward.

The project plan will use tax increment funding (TIF) in the Downtown and North 7th Avenue designated TIF Districts to facilitate funding for the first phase of the project. Phases two and three will bring fiber to the public schools and close up the proposed fiber rings by expanding to more business districts. You can reivew the Bozeman Fiber Master Plan and Feasibility Study and a summary of the project in the Commission Memorandum online.

The vote echoed a recent editorial in the Chronicle promoting the project and describing the decision to move forward as a "no-brainer":

On Monday, the Bozeman City Commission will consider a proposal to direct money from the North Seventh Avenue and downtown tax increment finance districts into a project to install a broadband, fiber-optic network around the city.

That’s a long and complicated sentence that describes what would be a not-too-monumental action on the part of the commissioners. But it could be the catalyst for a major economic boom to the city and the region, and commissioners should not hesitate to sign on to the plan. This system will provide sorely needed ultra high-speed Internet access to businesses and institutions.

There’s really no reason not to get involved in this reasonably priced project that has the potential to produce tremendous economic benefits.

Grover Beach Chooses Local Partner to Improve Local Connectivity for Businesses

After several years of considering options for a municipal network, the community of Grover Beach, California, is improving local connectivity options through a collaboration with private partner Digital West

According to the San Luis Obispo Tribune, the City struck a deal last fall with the local firm that will provide gigabit connectivity to local business customers. A city staff report states that Grover Beach will install and own a series of conduit that will house fiber owned by Digital West. 

The company, a data storage and web hosting firm located in nearby San Luis Obispo, will manage the fiber network. Digital West will lease conduit space from the city for 5.1% of its gross revenue from its operation of the private portion of the system. The initial lease is for a 10-year term. The company will also transfer ownership of some of the fiber to the city for public purposes. San Luis Obispo (SLO) County also wants to connect its facilities in the area and will contribute to the cost of the project. It appears as though SLO County will use the fiber provided to Grover Beach.

Grover Beach will contribute $500,000; SLO County will contribute $268,000; Digital West will contribute $159,000 to the total cost of $927,000 of the project. The parties agree that the city's contribution will be capped at $500,000. The staff report recommends an interdepartmental loan to finance the city's portion of the conduit installation.

Digital West has been an instrumental player in the city's quest for improved connectivity for several years. The company provides Internet service in SLO County and manages a private network offering connectivity, colocation, and cloud services to commercial clients. 

Grover Beach is also the location of the Pacific Crossing trans-Pacific fiber cable, connecting to Shima, Japan. In 2009, Digital West began working with Grover Beach to find ways to take advantage of the pipe. The city and Digital West have sence developed a Technology Master Plan and an Implementation Plan.

AT&T, Level 3, CenturyLink, and Verizon operate in the area, but Digital West plans to offer more affordable options. The city's vision includes providing more options for the numerous small businesses and to encourage more home based business. The staff report quoted Digital West estimated pricing at $100 per month for 100 Mbps and $150 per month for 1 gigabit service. Similar services in the area run between $250 per month and $500 per month according to the report.