In Iowa, we know the municipal model works because we have 20 municipalities providing services at rates far below the incumbents'.
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The Lake County fiber network is now serving a limited number of customers in northern Minnesota. According to the Lake County News Chronicle, the network's triple-play services are lit and bringing better connectivity to Silver Bay and Two Harbors.
About 100 customers in Silver Bay take service via the network; beta testers in Two Harbors are helping Lake Connections, the entity managing the network, straighten out any kinks in Phase One. Phase Two, which is more than 60% complete, will bring service to Duluth Township, Knife River, Silver Creek Townships, and Beaver Bay Township. Phase Two is scheduled for completion this summer; Lake Connections anticipates network completion in the fall of 2015.
The Lake County project has been plagued with problems, including delays cause by incumbents. Mediacom filed complaints with the Inspector General based on unsound allegations. While the cable company was not confident enough to sue, its accusations wasted time and money for Lake County. Frontier asserted ownership of a significant number of Two Harbors utility poles, even though the City has maintained them, and the two are still involved in negotiations over ownership and fiber placement on the poles. The Minnesota Cable Companies Association (MCCA) delayed the project further by submitting a massive data request.
The FTTH project is one of the largest stimulus projects, totaling approximately $70 million in grants, loans, and local matching funds. The project will cover almost 3,000 square miles when complete, connect almost 100 community anchor institutions, and provide services to over 1,000 businesses.
As we have noted before, the project was sorely needed. On more than one occasion, a single fiber cut to the area created Internet black outs to homes, businesses, hospitals, government, and any other entity depending on connectivity to function.
In Two Harbors, outdoor equipment supplier Granite Gear is on the new network. In the past, the entire company shared one DSL connection, forcing the company art director to work at night when bandwidth was available. Now, everyone works normal hours. From the article:
Dave Johnson, the strategic accounts manager for the 28-year-old company, said fast internet has become essential to Granite Gear in recent years.
“It’s not just nice having faster internet, but it has become an absolute necessity,” he said.
“Business is not just pushing emails back and forth. We maintain a website,” he said. “Doing business has become real bandwidth intensive.” A new technological era has dawned and companies are evolving to keep pace with their competitors.
Johnson told us via email that uploading files for customers in the past used to take hours but now the task takes a few minutes and does not disrupt service for other employees.
Delays have created extra expenses and Lake County will need more customers like Granite Gear to make the network strong. According to the article, the County has already started making loan payments:
[County Commissioner Rich] Sve said he understands his constituents’ concerns that the network may not be viable.
“I share that concern as a taxpayer. I think it’s legitimate,” he said.
But, he added, private companies have not stepped forward to provide the service, despite encouragement by federal and state government to do so. The county, therefore, opted to undertake the task.
“So far, we’re pleased with what we’re getting in Silver Bay and hopeful that it continues,” [Lake Connections Project Manager Jeff Roiland] said.
Businesses and residents interested in signing up for service from Lake Connections can contact them today to make arrangements:
“The biggest thing to do is contact our staff,” Roiland said. “They can call in (or) walk in and the gals at the office can explain to them what to do.”