Tag: "Burlington"

Posted September 21, 2017 by lgonzalez

And then there were three. After months of review and vetting, the field of bidders to purchase Burlington, Vermont’s, treasured municipal network is now a manageable number. On September 20th, city officials announced which entities were still in the running and released details of their proposals.

Ting

Toronto company Ting, which is owned by Tucows, submitted a bid to purchase the network. The company is already providing services in Charlottesville, Virginia; Holly Springs, North Carolina; and in Westminster, Maryland, where the public-private partnership has received several awards. The company is also planning construction in Sandpoint, Idaho, and Centennial, Colorado, where they will also be partnering with the municipalities to use publicly owned fiber.

They describe the key points of their offer as $27.5 million in cash and they will pay the city an additional $500,000 if BT earns $4.25 million earnings before interest, tax, depreciation, and amortization (EBITDA) during the 2018 fiscal year. Ting is offering the city a minority interest in the network that they can later divest if they choose.

logo-ting.png Ting will also relocate BT’s equipment, currently housed in the city’s Memorial Auditorium. The move is estimated to cost $800,000. As part of the deal, the company will also donate $250,000 toward the city’s Burlington Ignite and other programs to encourage entrepreneurship and closing the digital divide.

In their offer, Ting guarantees expansion within the city and beyond the city limits. Like the other bidders, Ting plans to keep the current operational team in place. They also guarantee customer rates for 30 months.

Review the details of the Ting/Tucows offer here.

Schurz

Schurz... Read more

Posted September 14, 2017 by lgonzalez

As fall sets in, the Burlington Telecom Advisory Board (BTAB) is still working on choosing a buyer for the Vermont city’s municipal network. The review of the four semi-finalists continues, concerned people express their opinions and BT’s work benefits the community.

High-Speed For Low-Income

In August, BT officials announced that they would be the first ISP in the state of Vermont to offer high-speed Internet to low-income residents through the federal Lifeline program. Lifeline provides a $9.25 monthly credit for qualifying households; BT will be offering symmetrical 25 Megabit per second (Mbps) service for $9.95 per month, leaving the balance for subscribers.

According to BT General Manager Stephen Barraclough, BT is able to participate in the program due to previous upgrades to the infrastructure:

“Because we have a gigabit network, because over the past three, four, five years we’ve essentially swapped out the majority of equipment that’ll allow a thousand meg to go to every home we have lots and lots of equipment that we’ve actually taken off the side of homes that is more than capable of delivering more than 25 meg symmetrical.  We have lots and lots of routers that can still be used. So if you look at it from a marginal cost perspective, how can we afford to do this, really there’s very little incremental out-of-pocket cost over and above what we already have.”  

Surpassing Goals

August was also an exceptional month for subscriber numbers at BT. In addition to reaching a new height for the number of subscribers added in one month, BT eclipsed their original goal of 7,000 total subscribers. As of the end of August, the network served 7,136 members of the Burlington community.

On their website, BT celebrated with this message for the community:

This amazing level of growth is a historical achievement for Burlington Telecom. We owe special thanks and gratitude to those who make this all possible, our customers – those who stood by us in BT’s darkest days, those who left but then came back, and those growing numbers who have been willing to give BT a chance.... Read more

Posted August 9, 2017 by lgonzalez

The clock is ticking as the city of Burlington examines bids from entities to buy or partner to operate Burlington Telecom. The community has narrowed down what sort of characteristics they want in a buyer, but there is also some debate about the process as city officials move toward the final process.

On To The Next Step

The community received eight bids, none coming from large national telecommunications companies. Early in July, the Burlington Telecom Advisory Board (BTAB) reported that the highest bid was two and a half times the lowest, but they did not make dollar amounts public. They’ve eliminated some of the bids and on July 31st, the finalists are scheduled to make presentations to the City Council in an executive session. 

While price is a factor that the city and the BTAB are considering, it isn’t the only criterion that matters. Last year, the BTAB released a report based on community input, recommending the city first look for a locally based entity. Many people in Burlington like BT as a locally controlled asset and fear it may eventually be swallowed up by one of the large, distant carriers. 

Keep BT Local formed when city residents banded together to create a cooperative. They started in 2012 and have recruited members committed to keeping BT in the hands of local residents. Keep BT Local was one of the entities that submitted a bid.

How Much Public Input?

Keep BT Local is the only bidder that has publicly acknowledged its decision to bid on the network and city officials are still undecided about how much information to release to the public about bidders. Mayor Miro Weinberger has indicated he would prefer the bidders and their bibs remain confidential until after city officials make a final decision.

“Each bidder is working hard to convince the city they can meet those criteria, and they don’t fully know how they stack up against and what the others are offering,” Weinberger said. “That dynamic creates a strong... Read more

Posted June 1, 2017 by lgonzalez

For the second week in row, our staff has felt compelled to address a misleading report about municipal networks. In order to correct the errors and incorrect assumptions in yet another anti-muni publication, we’ve worked with Next Century Cities to publish Correcting Community Fiber Fallacies: Yoo Discredits U Penn, Not Municipal Networks.

Skewed Data = Skewed Results

Professor Christopher S. Yoo and Timothy Pfenninger from the Center for Technology, Innovation and Competition (CTIC) at the University of Pennsylvania Law School recently released "Municipal Fiber in the United States: An Empirical Assessment of Financial Performance." The report attempts to analyze the financial future of several citywide Fiber-to-the-Home (FTTH) municipal networks in the U.S. by applying a Net Present Value (NPV) calculation approach. They applied their method to some well-known networks, including Chattanooga's EPB Fiber Optics; Greenlight in Wilson, North Carolina; and Lafayette, Louisiana's LUS Fiber. Unfortunately, their initial data was flawed and incomplete, which yielded a report fraught with credibility issues.

So Many Problems 

In addition to compromising data validity, the authors of the study didn’t consider the wider context of municipal networks, which goes beyond the purpose of NPV, which is determining the promise of a financial investment.

Some of the more expansive problems with this report (from our Executive Summary):

  • They erred in claiming Wilson, Lafayette, and Chattanooga have balloon payments at the end of the term. They have corrected that error in a press release. Other errors, such as confusing the technologies used by at least two networks, are less important but decrease the study’s credibility.
  • Several of the cities dispute the accuracy of the numbers used in the calculations for their communities.
  • The Net Present Value calculation is inappropriate in this context for... Read more
Posted May 26, 2017 by Nick

S&P Global Market Intelligence - May 26, 2017

Hard Data on Municipal Broadband Networks

Written by Sarah Barry James

There is a dearth of good data around municipal broadband networks, and the data that is available raises some tough questions.

A new study from University of Pennsylvania Law School Professor Christopher Yoo and co-author Timothy Pfenninger, a law student, identified 88 municipal fiber projects across the country, 20 of which report the financial results of their broadband operations separately from the results of their electric power operations. Municipal broadband networks are owned and operated by localities, often in connection with the local utility.

...

Yet Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, argued that Yoo's study did not present an entirely accurate or up-to-date picture of U.S. municipal networks.

"When I looked at the 20 communities that he studied — and his methodology for picking those is totally reasonable and he did not cherry pick them — I was not surprised at his results because many of those networks are either in very small communities … and the others were often in the early years of a buildout during a period of deep recession," Mitchell said.

As an example, Mitchell pointed to Electric Power Board's municipal broadband network in Chattanooga, Tenn. — one of the five networks Yoo identified as having positive cash flow but at such a low level that it would take more than 100 years to recover project costs.

...

In fact, without the revenue generated by the fiber-optics business, EPB estimated it would have had to raise electric rates by 7% this year.

According to Mitchell, Yoo's study captured the Chattanooga network when it was still "small and growing," but misses "what's going to happen for the rest of the life of the network, which I think is the more important part."

...

Read the... Read more

Posted May 25, 2017 by Nick

Telecompetitor - May 25, 2017

Municipal broadband networks do not have a strong financial track record, according to an analysis conducted by the University of Pennsylvania’s Center for Technology, Innovation and Competition. The municipal broadband financial analysis, which looked at 20 municipal fiber projects, found that only nine were cash-flow positive and that of those, seven would need more than 60 years to break even.

...

An Opposing View

Municipal network advocate Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, pointed to several flaws in the Penn Law municipal broadband financial analysis.

He noted, for example that a substantial portion of the 20 networks studied were “early in the process and very small.” He also argued that the 2010-2014 study period may have biased the results, as that period included a recession and subscribership for some of the networks has increased substantially since 2014. He noted, for example, that EPB’s broadband network in Chattanooga had about 50,000 to 55,000 subscribers in 2014 but has now hit the 90,000 mark.

The Penn Law authors’ approach was “not the proper way to measure these networks,” said Mitchell in a phone call with Telecompetitor. The analysis “doesn’t take into account jobs created or the impact on the municipal budget,” he said.

He argued, for example, that a municipality that previously paid $1 million annually for connectivity might instead pay itself $500,000 for connectivity on the municipal network.

...

Read the full story here.

Posted March 2, 2017 by lgonzalez

Not everyone’s American dream involves owning a single-family home but most of us DO want high-quality Internet access in our household. In major metropolitan areas, apartment renters are more likely to have cable and some are lucky enough to have Fiber-to-the-Home (FTTH). It’s only been recently, however, that owners of multiple dwelling unit buildings (MDUs) have really started to appreciate how fiber-optic connectivity, especially the gigabit kind, can add value to their investment. Now, a pair of MDU developers in Vermont will be the first to offer gigabit connectivity in the state to their renters and they’re choosing Burlington Telecom (BT) to provide the service.

The Gold Standard

“Fiber optic networks are fast becoming the gold standard both at work and at home, so it was important for us to have Burlington Telecom for this project.” says Jacqueline Dagesse [one of the developers], “Including Gig internet as an amenity offers our tenants instant access to the fastest, most reliable connectivity available without the hassles of signing up for service, waiting for an installer or committing to long-term contracts.”

The 27-apartment building is located in downtown Winooski, a town that borders the city of Burlington. The exercise facility in the building will also be a Wi-Fi hotspot. In addition to offering gigabit connectivity, the developers wanted to include various energy efficient amenities that would promote sustainability. The building will open this summer.

It Adds Up

MDUs with FTTH bring higher rents and a higher purchase prices for condos or units that are owned by residents. According to research by RVA, LLC, and reproduced in a neat graphic by the FTTH Council, almost 30 percent of people in the U.S. live in MDUs and FTTH connectivity can increase renters net income by 11 percent. This may be the first gigabit access apartment building in Vermont, but it won't be the last.

Posted February 15, 2017 by lgonzalez

Last spring, the BT Advisory Board (BTAB) released a report that recommended the city of Burlington, Vermont, try to find a buyer with local ties to purchase its network with the troubled past. As the deadline draws near and the city seeks out the right entity to take the reigns, the community holds on to that goal. Keep BT Local!, the local organization that has been working since 2012 to turn the network into a cooperative, has announced that it will make an offer on the network.

According to Seven Days:

Alan Matson, vice chair of Keep BT Local, said the local co-op will put forward an offer for the utility. The member-funded effort likely won’t put forward as substantial an offer as a private tech company would, Matson acknowledged. Still, he said, “We hope to be one of the finalists in July.”

Matt Cropp, a member of Keep BT Local, said the co-op model would “build broad-based community wealth” and urged Burlingtonians to pitch in. He said he was willing to commit a portion of his retirement savings to the cause. 

Matson and Cropp were among a group of citizens who attended a public meeting with Advisory Board members to discuss options and offer advice on choosing a buyer. As expected, many of the attendees described the network as a valuable public asset and expressed concern that it not fall into the hands of a large, absentee telecommunications conglomerate such as Comcast. 

Choosing Finalists

As part of the process, the Board voted to send its proposed sale process to the city council for approval. Last year’s report established a set of criteria which the city will use to evaluate interested parties. Once the city council approves the process they propose, the BTAB will create a list of interested buyers and officially launch the sales process. They intend to create a list of finalists who would then present publicly before the city council and, by the end of July, the council would choose a... Read more

Posted December 3, 2016 by lgonzalez

Burlington Telecom has popped up on our radar before as one of those munis that goes the extra mile for the community. They’re at it again this holiday season as they pledge to help support local charities.

According to VTDigger:

From now until the end of the year, Burlington Telecom will donate $100 to a Burlington based non-profit for each new customer subscribing to BT Internet, television, or phone services.

Customers will have the choice to direct BT’s donation to one of five organizations: Committee on Temporary Shelter, Community Health Centers of Burlington, Howard Center, Spectrum Youth & Family Services, and Steps to End Domestic Violence.

As a bonus, an additional $25 will be donated for any current Burlington Telecom customer who uses BT’s Refer-a-Friend Program.

Record Of Care

We’ve covered their past decision to launch a computer repair service so customers had somewhere local to get hardware advice. In 2011, BT announced a partnership with a local nonprofit to provide affordable computers to local families. Recently, BT began offering free Wi-Fi in the city’s transit center so travelers could stay connected.

Locals Want Local Interest

Keep BT Local! is a cooperative started by Burlington residents and businesses that are raising capital to purchase the network from Blue Water LLC, the company that currently owns the assets. When CitiBank sued the city for $33 million, the settlement agreement required that a third party (eventually Blue Water) take temporary ownership and the city lease the network until they could agree on a permanent buyer. 

The BT Advisory Board recommended a local owner this past spring. Keep BT Local! has been... Read more

Posted October 21, 2016 by Scott

Burlington Telecom is teaming with Green Mountain Transit to provide free high-speed Wi-Fi to commuters and GMT employees at the new transit center, reports Vermont Business magazine. The bus transit center opened on Oct. 13.

The magazine noted:

“A reliable high speed Wi-Fi connection on the Downtown Transit Center platform will improve the customer experience, allowing passengers to use their wait time more effectively as they work, connect with friends, or download an e-book to enjoy on the ride.”  

Burlington Telecom general manager Stephen Barraclough told Vermont Business:

 “The opening of the new Downtown Transit Center is a much needed development for the many who commute to and from Burlington daily, and provides an exciting opportunity to highlight Burlington’s powerful gigabit infrastructure as an accelerator for economic, educational and community benefit.” 

Burlington Telecom joins a growing list of U.S. communities that are making free high-speed Internet connectivity available at public transit stations and airports. 

Free Wi-Fi At The City Gateway

In April 2015, we noted that LUS Fiber began sharing its municipal Gigabit network with travelers at the Lafayette Regional Airport in Louisiana. Free Wi-Fi is available at the airport supported by LUS Fiber, allowing guests to check email, post to social media, and browse the Internet.

wireless-icon.jpg

"We know that businesses choose to come to Lafayette for a variety of reasons and many have cited our 100% fiber-optic network as one of those reasons,” said City-Parish President Joey Durel. "As a gateway to Lafayette, we want visitors to experience the ultra high speeds of a Gigabit Internet connection, from the moment they arrive... Read more

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