Tag: "FTTH"

Posted July 29, 2009 by christopher

Many people in rural areas get their phone services from a cooperative telephone company. When it comes to fiber in rural areas, some of these cooperatives are on the cutting edge. The July Issue of FTTH Prism [pdf] from Chaffee Fiber Optics has a feature on Paul Bunyan Telephone in Minnesota. They are an aggressive broadband network deployer in rural areas, often saving residents from Qwest or another company unable (sometimes just unwilling) to build these necessary networks.

Cooperative telephone companies fall into our understanding of publicly owned because they focus on their communities first and do not seek to maximize profits at the expense of social benefits.

Paul Bunyan Telephone is nearly 60 years old and now covers over 4,500 square miles. They have used RUS loans to finance significant portions of the network.

Currently, over 4,000 locations are served with our fiber-to-the-home network, which represents about 30 percent of our entire network. For these customers, thanks to the benefits of fiber optics, we can deliver high-speed Internet services up to 40 Mb (both upload and download) and a host of advanced television services including multiple streams of high-definition television, digital video recording, and on-demand services.

For those who claim that people in rural areas just don't understand broadband or don't want it, this company has an answer:

One specific example the fiber optic network capacity can have on a business is Northwood DNA, Inc. This is a business operating in a very rural area, Becida, MN, that provides DNA sequencing and genotyping services globally. The services they provide require receiving and sending large data files electronically. Prior to the deployment of the fiber optic network, their business was only able to report two to three test results per day. Today, with the benefits of the all fiber optic network, they report over 50 test results per day.

The full story starts on page 9 of the 2009 July FTTH Prism.

Posted July 24, 2009 by christopher

Fiona's Morgan's 2008 article on Greenlight in Wilson, North Carolina. The article comprehensively covers why Wilson chose to do it and the issues involved with a community choosing to build its own network.

The Buchans have better Internet access than you do, wherever you live in the Triangle, thanks to the $28 million fiber-to-the-home network the city of Wilson is installing to every address in its city limits. That network powers Greenlight, Wilson's fiber-optic-based Internet, television and phone service. Like its water, sewer and electricity, the city now provides high-speed Internet as another public utility.

...

Yet there's one major difference: speed. Greenlight's Internet starts at 10 Megabits per second and goes up to 100, a speed common in nations such as Japan and South Korea, yet rare in the United States. Time Warner's residential Road Runner service offers no higher than 10 Mbps in much of the state. In Wilson, however, the company recently upped its top-tier speed to 15 Mbps "because of the competitive environment," a Time Warner spokesperson said.

Posted July 10, 2009 by christopher

Another in the series of Municipal FTTH snapshots from Broadband Properties Magazine, Gainesville Regional Utilities network is a utility owned fiber network that is slowly working its way to citywide coverage. They serve the city and surrounding unincorporated areas.

The article covers their biggest challenges - including the importance of educating the population as to why the utility upgraded to fiber-optic connections.

Posted July 7, 2009 by christopher

This article details the philosophy, approach, and opposition to an effort to allow many communities in Iowa to build their own open access telecommunications infrastructure - full fiber networks. Many in Iowa feel particularly vulnerable to the new economy because their low density puts them low on the priority list for investments by absentee-owned companies:

There is much talk in Iowa today about the need to attract and retain young people. Each year thousands of college graduates leave the Hawkeye State. Today in Iowa, there are more people over the age of 74 than under the age of five. No state grew at a slower pace than Iowa during the last century. Reversing these trends is going to take bold leadership and fresh ideas. OpportunityIowa was created to educate citizens about the vital role 21st Century communications infrastructure could play in doing just that.

Daley argued that without local self-reliance, many towns in Iowa would not benefit in the digital economy because they would not have access to fast and affordable networks.

The current cable and telephone companies serving Iowa have no incentive to replace their copper lines. They have to and they don't want to. They don't have to because they know consumers have no choice but to use their copper wires and they don't want to [encourage open access] because it may bring competition where they currently have none. In fact, the incumbent phone and cable companies have expressed their opposition to upgrading existing infrastructure in order to make Iowa a leader in broadband capabilities.

The article ends with lists of both communities organizing referendums for Nov, 2005, as well as communities that already have telecommunications utilities. Ultimately, many communities authorized the telecommunications utilities but most of those have not followed up by building the envisioned networks.

Posted July 7, 2009 by christopher

In 2004, the Loma Linda city council passed a short, one paragraph ordinance that modified the building code. From then on, new buildings, or buildings that were significantly renovated had to meet specifications to be added to the Loma Linda community fiber network - the Connected Community Program. This is an interview with James Hettrick, who was largely responsible for it.

I'd like t hose communities to have an opportunity to say what kind of infrastructure is put in, so that they have some say over what kind of services they can provide later. It's pretty tough for cities to re-negotiate with the telcos after they put in their infrastructure and system. The telcos then see them as a revenue source rather than as a partner. After that, it becomes very difficult for cities to do the kinds of things that they may want to do.

Loma Linda is an interesting network because they have put it in the building code - meaning developers pay much of the cost of building it - a strategy that works better in towns with more greenfields than existing developments.

It's built by the developers to our specifications just like the streets, water, sewer and storm drains system. After completion, they deed the infrastructure over to us; we then must maintain it forever. Once it's available to us, we put in our active gear and serve their buyers. They, of course, market their homes in this region as unique. On a side note, studies have shown that homes wired with fiber usually sell for $4000-$14,000 over those without fiber [the additional cost of building the network is estimated at $3,500 per unit to the developer].

Posted July 7, 2009 by christopher

Windom, a small community of only 5,000 people in southwestern Minnesota, upgraded its city-owned cable network to a fiber-to-the-home system. They issued $9.4 million in revenue bonds (of which $800,000 were just for the first two years of interest, when no revenue is generated from the system being built) to pass 2,000 homes and 300 businesses.

But, as with so many other aspects of life, the story was more interesting than that.

Before Windom could formally dedicate resources to address its communications challenge, however, the city was required by state law to obtain a two-thirds majority vote of approval from its citizens. Largely due to the incumbent [Qwest] telecommunications operator's announcement that it would upgrade its infrastructure and roll out digital subscriber line (DSL) services in Windom's area, the initial vote in 1999 on a new city-owned network failed. But after the incumbent cancelled its plans for DSL [while building DSL in other nearby communities], a citizens group petitioned Windom's city council to put the telecommunications project back on the ballot. In spring 2000, Windom received approval by the voters to begin work on a next-generation broadband communications infrastructure project.

This is a two-page article covering some of the history of WindomNet.

Posted June 30, 2009 by christopher

Broadband Property's Muni FTTH Snapshot for Reedsburg, Wisconsin, offers some details on one of the earliest muni fiber deployers. They started in 2002 and began offering services in 2003. The network is run by the public utility, Reedsburg Utility Commission.

They offer a 10 Mbps symmetrical connection for $49.95/month and a very low churn rate.

The economic impact has been significant:

In April 2007 Reedsburg businesses participated in a groundbreaking research project conducted through Reedsburg Utility Commission and the Fiber-to-the-Home Council. The survey, which had a 23 percent response rate, found that the speed, bandwidth, reliability, pricing and customer service provided by Reedsburg’s fiber optic network helped them make operations easier, increase efficiency and save time.

Most of RUC’s business fiber customers were using their broadband connections for research, document transfer, and purchasing. Other uses included banking, advertising, customer service, employee training, online sales and telework.

Six in ten Reedsburg business customers reported cost savings from fiber averaging more than $20,000 per year. Half said they were able to adopt new and more efficient processes, and 46 percent cited marketing benefits. Forty one organizations, or 10 percent of all the businesses in Reedsburg, reported that their sales had increased as a result of their fiber connections, and an overall net increase in employment of 19.8 percent was attributed to fiber.

Extrapolating from the sample, the estimated benefit to the community as a whole amounts to $1.85 million per year in additional sales and a net cost savings of $4.4 million per year.

Posted June 30, 2009 by christopher

Pulaski, Tennessee, has used its public power utility, Pulaski Electric System, to build a fiber-to-the-home network. They started building the network in 2006 and offering services in 2007.

In this snapshot by Broadband Properties, the technical aspects of the network are explored.

Some economic development impact:

Local economic development leadership has begun marketing PES’ services to nearby Huntsville, Alabama, which is home to a large number of defense and space industries. Before PES built its network, the community had never attempted to approach the defense or aerospace companies because it had little to offer that met their special needs.

The FTTH network has allowed several existing industries to receive superior service at much lower prices. The system has become a focus of community pride and an example of the community’s willingness to invest in the future.

One key lesson learned has been that the long term needs of the community are not reflected in the current preferences of residents:

Although we built a state-of-the-art fiber network, we came to realize that most residential customers do not concern themselves with future applications. They are looking to replace or upgrade the services they have today. So even though we built a system capable of cutting-edge services, it often still comes down to which TV channels you offer and at what price. Customers are shoppers first.

They have also offered increasing educational opportunities:

PES established a partnership with the local college to operate our local access channel, 3PTV. This channel provides the students at Martin Methodist College with an opportunity to learn video production and technical editing, and it provides a valuable and exclusive channel offering for PES.

Also, we partnered with AT&T to provide a turnkey network that links all the schools in our county. PES provides the fiber connection, and AT&T manages the data and technical support. This allowed the local school district to use AT&T’s state contract pricing, yet be linked with PES’ fiber network.

Posted June 30, 2009 by christopher

This article highlights three publicly owned networks that are expanding or building in the midst of a difficult economy - the Dumont Telephone Company in Iowa (a cooperative); Auburn, Indiana; and Greenlight in Wilson, North Carolina.

Dumont is facing the most difficult path:

Deploying rural and small-town fiber is always tough. Doing it without much hope of funding from outside is even tougher. But visionaries in these communities took the long view, planning to stretch out their builds over as much as seven years – longer if they have to. One community – Dumont, Iowa – is profiting from a world-class GPON build with fewer than two households passed per mile and precisely zero businesses to help foot the bill.

Auburn began building a municipal fiber network to keep some local employers in town - called Auburn Essential Services. As happens all over the United States, small towns lose businesses because the private sector is not able to provide the necessary networks. Built at first just to connect some local sites, the city later began to expand it:

In mid-2006 the city adopted a phased rollout plan for FTTP, where each phase would generate revenues that could be used to fund the next phase. The first phase, which includes the neighborhoods where most businesses are located, rolled out between April and December of this year.

The city’s marketing plan includes mailers, door hangers, advertising and even site visits to businesses. Existing technology was leveraged for back-office operations, and customers were given the option of receiving consolidated utility bills or separate bills for electricity and telecommunications.

Wilson, North Carolina, was also dealing with poor local networks that hampered economic development. Time Warner not only refused to build the necessary networks, it then refused to use a network the city offered to let them ride, and finally tried to prevent them by passing what was often called the "Incumbent Protection Act" in the state legislature. Fortunately, Time Warner was not able to prevent local competition and Wilson's network is currently being built. They used a rather unique financing plan:

Rather than issue general obligation bonds, Wilson obtained $31 million in private funding...

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Posted June 30, 2009 by christopher

Kutztown, a small community in Pennsylvania, built a fiber-to-the-home network in 2002 run by the public power utility called Hometown Utilicom. The small town network was taken very seriously by major networks, like Verizon, that pushed to create laws in Pennsylvania that would make it difficult for other communities to build the networks they needed.

This snapshot from Broadband Properties offers some history and technical specifications of the network. This was the economic development impact:

Several businesses relocated to or expanded in the area because of the network. The amount of student housing has increased. The municipality itself has saved significantly on telecommunications costs. Residents have saved $1.5 million due to Hometown Utilicom’s lower rates and the competitive discounts offered by other local service providers.

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