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 from banks, using its fiber assets as collateral. Multiple banks bid on the loan.