Tag: "FTTH"

Posted November 29, 2010 by christopher

Vermonters are asking some hard questions about the federal broadband stimulus decision to throw money at a wireless network for Vermont rather than loaning money to an organization dedicated to delivering real broadband.

Senator Bernie Sanders convened a meeting to discuss the awards toward the end of October.

Senator Bernie Sanders led off his “broadband town meeting” Saturday morning at Vermont Technical College with a ringing affirmation of the need for better broadband coverage in Vermont and the nation.

However, nobody in the crowd of nearly 300 people needed to be convinced of that. What they wanted to know was whether a huge new federal grant to a private company was the right way to do it.

VTel, a small private telephone company, received a $116 million grant to build a FTTH network to serve their existing 18,000 footprint as well as a wireless network that is intended to serve the entire state.

In contrast, the East Central Vermont Fiber Network (which we have covered previously), applied for a loan to build a FTTH network to everyone in the 24 communities that have joined together to form the network. The ECFiber network would be run by a nonprofit and would repay the loan from revenue generated by selling triple-play services on the network.

Vermonters have a strong fiscal conservatism streak, which has shown up strongly in the discussions around this situation, something noted in a story leading up to the Sanders meeting:

He will get plenty of both from representatives of ECFiber, the consortium of 23 towns that has been planning a network of fiber-optic broadband to virtually every home in the White River Valley and beyond.

The organization was stung recently when its own request for a loan was not funded by RUS, which instead awarded a much larger outright grant to VTel, which is located in Springfield.

Our position at MuniNetworks, is quite similar to that of the these Vermonters: loans would be better policy than grants for broadband infrastructure.

Supporters of the wireless network, including VTel's CEO, Michel Guite, have suggested the $116 million...

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Posted November 24, 2010 by christopher

David Isenberg, of isen.blog, has published a short history of Reedsburg's community fiber network that he previously wrote for the FCC when they were gathering evidence of successful networks they would later ignore in formulating a plan to continue the failed status quo of hoping private companies will build and operate the infrastructure we need.

Nonetheless, one cannot say that smart people like David did not try to help the FCC overcome its obsession with national carriers who dominate the conversations, and whose employees often work periodically with the FCC in what we call the revolving door (which itself, is a reason the FCC has been captured).

Back to Reedsburg; it is a small community approximately 55 miles northwest of Madison that just happens to have far better broadband service than just about anywhere else in Wisconsin.

David writes,

RUC first entered the telecommunications business in 1998, when it constructed a ring to tie its wells, its five electrical substations together and to provide Internet access for its high school, middle school and its school administration building. In planning the ring, the city asked Verizon and Charter if they would build it, but they were not responsive. RUS built a partly aerial, partly buried 7-mile ring of 96-strand fiber at a cost of about $850,000. Internet access was provided by Genuine Telephone, a tiny subsidiary of LaValle Telephone Cooperative which ran a fiber from LaValle, about 8 miles NW of Reedsburg.

As they were building the ring, local businesses asked to be connected as well. Reedsburg took the path that so many communities have followed, start by building for yourself and expand opportunistically. Of course, this requires that you originally engineer the network so it can be later expanded, which is good practice regardless of your future plans.

Reedsburg used bond anticipation notes, a financial mechanism that few others have used in building similar networks.

A local bank loaned the initial $5 million in bond anticipation notes for planning and construction. Then RUC issued an...

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Posted November 23, 2010 by christopher

For years, the North Carolina General Assembly has considered bills pushed by cable lobbyists to ban community networks. A new analysis from the folks at MuniNetworks.org shows that community fiber networks offer the most advanced services in the state -- faster speeds at lower prices. Preempting these community networks would cripple North Carolina's ability to compete in the digital future.

Read the Report [pdf]
Read the Press Release

Following on the heels of similar findings for Minnesota, smaller towns in North Carolina that have built community owned fiber networks offer far superior services to those found in the metro area around Charlotte and the famous Research Triangle.

The two community fiber networks are Wilson's Greenlight and Salisbury's Fibrant. We have written frequently about both - Fibrant coverage and Greenlight coverage.

A chart and explanation from the report:

NC BB Price chart

Comparing the tiers of residential service from Wilson or Salisbury against the providers in the Raleigh area (figure 4), shows that the communities have invested in a network that offers far faster speeds for less money than any of the private providers (Greenlight offers more packages than depicted as only unbundled options are displayed). Whether communities in North Carolina are competing against other states or internationally for jobs and quality of life, they are smart to consider investing in a community fiber network.

This chart actually uses the new FCC definition for “basic broadband,” which is 4 Mbps downstream and 1 Mbps upstream. The packages that are plotted below and to the left of the origin are no longer technically broadband. Notice how many of the plans offered by private providers barely qualify as broadband. In fact, as neither AT&T nor Time Warner Cable offer upstreams of at least 1Mbps in Raleigh, their...

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Posted November 18, 2010 by christopher

Yet another town has decided to take responsibility for their broadband future: a small Florida community has secured financing and is moving forward with their publicly owned FTTH network.

The City Council voted unanimously Monday night to approve the $7.3 million in funding with Regions Bank in Orlando. City Manager Lisa Algiere told the council members the city would be doing most of its business with the local Regions Bank.

The funding will come in the form of three bonds: a series 2010A Bond, which is good for 20 years and has an interest rate of 3.61 percent; the second bond is a Series 2010B Bond and is for five years with an annual interest rate of 3.20 percent; while the third bond is a Series 2010C Bond and is good for one year. The funding secured by the city is a drawdown loan, meaning it will only take what it needs and only repay that portion.

The network has been branded Greenlight (though the website is not yet fully functional). Greenlight is also the name used by the Community Fiber Network in Wilson, North Carolina.

Light Reading interviewed a network employee, shedding more details than have been released elsewhere.

He says they are passing 7,000 premises, but Wikipedia only notes a population of 2,000 in 2004, so there is more than meets the eye at first glance. They financed the network without using general obligation bonds, working with a nearby bank (Regions is a big bank, headquartered out of state).

Local competitors are AT&T and Comcast, though both offer extremely slow services; the fastest downstream speed available from Comcast is 6Mbps. The new network, as do nearly all recent community fiber networks, will offer much faster connections, the slowest being 10Mbps.

This is a good sign that communities in Florida can still move forward despite the many...

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Posted November 9, 2010 by christopher

As we wrote last week, Salisbury's Fibrant -- the newest community fiber network in the country -- launched last week and immediately saw Time Warner Cable respond with an upgrade to its cable plant that allowed it start advertising even faster speeds - a 50/5 tier of broadband (whether they actually deliver that to anyone, I doubt and will wait to see).

Fibrant was "only" advertising (and delivering) 15/15 and 25/25 speeds, so some suggested that TWC had taken the top honors away... though for people who know much about telecom technology, most of us will gladly take a 25/25 on fiber-optics over a supposed 50/5 on an old, unreliable coax network.

Nonetheless, Fibrant didn't break a sweat, and announced that they were already offering a 50/50 plan though they did not advertise it. I'm not sure why it was not advertised -- though if the reason was to hold a trump card ready in response to TWC's gimmicks, it was a smart move. And Fibrant's 50/50 plan at $85 is cheaper than TWC's 50/5 plan.

Though community fiber networks consistently offer better experiences and lower costs, the big incumbent providers are well versed in gimmicks -- communities must keep that in mind as they plan their own networks. This may mean creating higher tiers of service that many only interest a select few, if that, to remind the populace of the technical superiority of the public network.

Salisbury has since announced that both 100/100 and 200/200 plans are in the works from their network. A 200/200 will be the fastest plan in North Carolina -- though one wonders how the results of the election will impact the future of community fiber networks in the state. Unable to beat community fiber networks in the market, TWC has repeatedly pushed for crippling laws against communities that would dare create competition against TWC. After the 2010 election, North Carolina has a more conservative state government that may find TWC's lobbying more persuasive.

In the meantime, TWC is yet again increasing rates to subscribers, as noted by Stop the Cap!. We'll see if Fibrant is able to shield the community from future rate increases as...

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Posted November 6, 2010 by christopher

Outside Plant Magazine has reprinted some of my "Breaking the Broadband Monopoly" report with a focus and updated numbers on the Chattanooga EPBFi network.

Across the country, hundreds of local governments, public power utilities, non-profits, and cooperatives have built successful and sometimes pioneering telecommunication networks that put community needs first.

These communities are following in the footsteps of the publicly owned power networks put in place a century before. We watch history repeat itself as these new networks are actively being built across the country.

Cities like Lafayette, Louisiana, and Monticello, Minnesota, offer the fastest speeds at the lowest rates in the entire country. Kutztown’s network in Pennsylvania has saved the community millions of dollars. Oklahoma City’s massive wireless mesh has helped modernize its municipal agencies. Cities in Utah have created a true broadband market with many independent service providers competing for subscribers. From Washington, DC, to Santa Monica, California, communities have connected schools and municipal facilities, radically increasing broadband capacity without increasing telecom budgets.

Posted November 3, 2010 by christopher

Wilson's Greenlight community fiber network is ahead of schedule. They continue to operate ahead of the business plan, despite a few difficulties that offer lessons to up and coming community networks.

We recently covered the fallout from their application to the broadband stimulus program where they had to disclose network information to their competitors.

Fortunately, that was not the only news last month from North Carolina's first all-fiber citywide network. They also surpassed 5000 subscribers and remain 6-9 months ahead of their business plan in take rate, according to the Wilson Times.

The number of customers is expected to reach 5,300 by the end of the fiscal year if the current trend continues, according to Dathan Shows, assistant city manager for Broadband and Technical Services. The city's current business plan calls for Greenlight to reach 5,000 customers by the end of the third full year of operation, which will be June 2011.

This is not the first time the network has exceeded projections; the network was built faster than expected and quickly jumped out ahead of take rate expectations.

One of the reasons Greenlight may be growing is its attention to local needs, as illustrated by the network finding a way to televise local football matches that otherwise would not have been available.

However, the Wilson Times story goes into much greater detail regarding the competition from Time Warner Cable. As we regularly see, Time Warner Cable is engaging in what appears to be predatory pricing to retain customers and starve Greenlight of new subscribers.

A lesson to other community networks, Wilson is documenting the deals TWC uses to keep subscribers. All communities should keep these records.

"Time Warner Cable's market tactics include anti-competitive pricing that interferes with Wilson's ability to secure customers through normal marketing," the application [for broadband stimulus] states. "TWC offers below-market rates to customers seeking to switch to Greenlight, locking them...

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Posted November 1, 2010 by christopher

I recently heard that the only place one finds a free lunch is in a mouse trap. As we sift through the lessons from the broadband stimulus programs, we have learned that the federal government preferred funding private projects rather than those that are structurally accountable to the community.

Before the first round of stimulus applications were due, many communities recognized the costs of applying were too high for them. Now, some are recognizing the high costs of complying with the many federal rules that come with accepting federal grants and loans (as detailed by Craig Settles).

And now, North Carolina's city of Wilson has found that applying for the broadband stimulus may have disadvantaged its FTTH network. Though the application was not accepted, the city has had to turn over its full application (chock full with proprietary information) to its competitors.

This is yet another example of ways in which the "playing field" is tilted against the public. The Wilson Times explained the situation and settlement.

The application included a proposed expansion of the network to provide reduced-cost or no-cost broadband lines to homes of Wilson County school children, a health network, increased lines for police and other improvements that would enhance the network in the city, Goings said.

When the North Carolina Telecommunications Association (with prominent member Time Warner Cable - incumbent cable provider competing with Wilson's Greenlight) asked to see the full application, the City refused to turn it over -- even after a court ruled against the City. The City argued the application contained key information regarding the policy and utilities that should not be made public for security reasons. When the Department of Homeland Security ignored the City's requests to intervene, the City was compelled to release the documents.

This is a particularly interesting juxtaposition as privately owned telcos and cablecos regularly argue against having to disclose any information about about their networks as a security...

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Posted October 18, 2010 by christopher

As Salisbury prepares to officially launch its publicly owned FTTH network offering triple-play services, it offers lessons for other communities that want to follow in its footsteps. As we wrote a month ago, Fibrant has candidly admitted it cannot win a price war with incumbents. Companies like Time Warner Cable have a tremendous scale advantage, which allows them to price below cost in Salisbury because the large profits from all the non-competitive markets nearby can subsidize temporary losses.

On October 10, the Salisbury Post ran a story "Fibrant can't match cable company specials." Alternative possible titles for the article could have been "Cable Co cuts prices to drive competition from market," or "Time Warner Cable admits customers pay different prices for same services." Interestingly, when Fibrant unveiled its pricing originally, the headline read "Fibrant reveals pricing" rather than "Fibrants offers speeds far faster than incumbents."

A lesson for community networks: do not expect the media to cover you fairly. The big companies have public affairs people with relationships with the press and they often buy a lot of local advertising. This is not to say all local media is bought off -- far from it -- but local media will have to be educated about the advantages of community networks.

Quick question: When you hear this quote, who do you first think of?

"We always work with customers to meet their needs and budget."

The cable company, right? Well, that is Time Warner Cable's claim in the above Salisbury Post article. Later in the article, a local business owner expressed a different sentiment: "Time Warner has the worst customer service I have ever dealt with."

The business owner goes on:

“Fibrant may have these same kind of issues, however I can actually go to the source to deal personally with someone who is vested in the community, not spend two hours on the phone and never solve the problem as I do with TWC,” he said.

“Even if pricing is higher, I would make the change. Price is important, but quality and service is tantamount.”

Speaking of the services...

...
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Posted October 6, 2010 by christopher

In Virginia, Danville's open access all-fiber network, nDanville, currently serves only businesses and large clients. In the early summer, Danville Utilities decided to recommend expanding the network to between 2,000 and 3,000 residential homes with a 10 year, $2.5 million loan.

As Danville Utilities operates the network purely on a wholesale basis, it would not provide services directly. From an article leading up to the decision:

Danville Utilities would run the broadband services to the homes, to a box mounted on the house, and the user would pay a monthly service fee of $8.80 on their utility bill for the box. Gamewood would bill customers for the actual services provided, and pay the city 20 percent of those charges as an access fee for the cable.

Gamewood, a company that would have provided IPTV services on the network, had attempted to measure subscriber interest by mailing a postcard to 1000 local residents. The response failed to persuade at least one city council member, who demonstrated a total lack of understanding of the situation.

Luther bluntly said he had “no faith” in the numbers, and said he is convinced “nDanville is not going to fly.”

“If they want to build it, let Gamewood built it,” Luther said.

Of course, a private company is not interested in an investment that takes 5 years to break even. Even if it were, it would have little incentive to open the network to competition as nDanville does.

Ultimately, the City Council neglected to fund the project - perhaps an unsurprising decision in a time of economic woe. However, for a community like Danville, one wonders how it will recover without access to better broadband than last-generation cable and DSL services that are commonly available throughout the region.

The local paper editorialized in favor of the decision, but noted that the public power utility should continue expanding the network for commercial subscribers.

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