Tag: "monticello"

Posted January 11, 2017 by lgonzalez

It’s no small feat to plan, deploy, and operate a municipal citywide Fiber-to-the-Home (FTTH) network, but communities are doing it. We’ve put together a Citywide Municipal FTTH Networks list and a map, with quick facts at your fingertips. If your community is considering such an investment, this list can offer a starting point on discovering similarly situated locations to study.

The list is divided by state and each state heading offers a description of any barriers that exist and a link to the statute in question. Under each community, we also included relevant links such as to the provider’s website, coverage on MuniNetworks.org, and reports or resources about the network.

We used four basic criteria to put a community on our list and map:

  • The network must cover at least 80% of a city.
  • A local government (city, town, or county) owns the infrastructure.
  • It is a Fiber-to-the-Home network.
  • It is in the United States. 

Share the list far and wide and if you know of a community network that meets our criteria that we missed, please let us know. Contact H. Trostle at htrostle@ilsr.org to suggest additions.

Posted December 19, 2015 by rebecca

The Pioneer Press published this op-ed about Minnesota high speed Internet access and availability on December 3, 2015. 

Christopher Mitchell: Competition and community savings

Minnesota has just one more month to achieve its goal of high speed Internet access available to every resident and local business. In 2010, the Legislature set a 2015 goal for universal Internet access at speeds just under the current federal broadband definition. But the state never really committed to anything more than a token effort and will fall far short.

Even for those of us living in metro areas that have comparatively high speed access, we don't have a real choice in providers and most of us lack access to next-generation gigabit speeds.

The big cable and telephone companies excel at restricting competition by manipulating markets, state and federal government policy, and other means. This is why so many local governments across the nation are themselves expanding Internet infrastructure: to ensure local businesses and residents can access affordable next-generation services and create a real choice. We should be encouraging these local approaches.

The Institute for Local Self-Reliance is tracking more than 450 communities where local governments are expanding choices with direct investments in networks. Just this month, some 50 communities in Colorado and two in Iowa voted to move forward with plans for their own networks or partnerships.

Here in Minnesota, we have seen a variety of successful approaches. Eagan's modest network attracted a data center.

Dakota County has saved itself millions of dollars by placing conduit for fiber in the ground at very low cost as part of other projects. Now it can use that to help local companies to compete with the big cable and telephone companies.

Scott County's fiber network has helped create more than 1,000 jobs and tremendously improved access in area schools. In Sibley County and part of Renville, cities and townships joined together to help launch a new cooperative, RS Fiber, which shows tremendous promise. Cooperatives, which are effectively community-owned as well, offer some of the best connectivity in rural regions of the state.

Some municipal networks have been... Read more

Posted January 8, 2015 by lgonzalez

Minneapolis, MN —In 2010 the Minnesota legislature set a goal: universal access to high speed broadband throughout the state by 2015. As 2015 approaches we know that large parts of Greater Minnesota will not achieve that goal, even as technological advances make the original benchmarks increasingly obsolete.

But some Minnesota communities are significantly exceeding those goals. Why? The activism of local governments.

A new report by ILSR, widely recognized as one of the most knowledgeable organizations on municipal broadband networks, details the many ways Minnesota’s local governments have stepped up. “All Hands On Deck: Minnesota Local Government Models for Expanding Fiber Internet Access” includes case studies of 12 Minnesota cities and counties striving to bring their citizens 21st century telecommunications.

  • Windom, which is one of the most advanced networks in the state, built their own network after their telephone company refused to invest in their community.
  • Dakota County showed how a coordinated excavation policy can reduce by more than 90 percent the cost of installing fiber.
  • Lac qui Parle County partnered with a telephone cooperative to bring high speed broadband to its most sparsely population communities.

Read how these and other communities took control of their own connectivity and their community vitality. Some did it alone while others established partnerships; each chose the path they considered the best for their own community.

Posted September 30, 2014 by lgonzalez

In our latest report, All Hands On Deck: Minnesota Local Government Models for Expanding Fiber Internet Access, we analyze how local governments in 12 Minnesota communities are expanding 21st century Internet access to their citizens.

In 2010, the Minnesota legislature set a goal for 2015 - universal access to high speed broadband throughout the state. Even though we have the technology to make that vision a reality, large swaths of the state will not meet that goal. Nevertheless, local folks who have chosen to take control of their connectivity are finding a way to exceed expectations, surpassing the choices in many metropolitan regions.

Some of the communities we cover include:

  • Windom, which is one of the most advanced networks in the state, built their own network after their telephone company refused to invest in their community.
  • Dakota County showed how a coordinated excavation policy can reduce by more than 90 percent the cost of installing fiber.
  • Lac qui Parle County partnered with a telephone cooperative to bring high speed broadband to its most sparsely population communities.

We delved into networks in Anoka, Carver, Cook, Lake, and Scott Counties. The report also shares developments in the municipalities of Chaska, Buffalo, and Monticello. We tell the story of RS Fiber, located in Sibley and part of Renville County. These communities provide examples of municipal networks, a variety of public private partnerships, and "dig once" policies.

This week in Minnesota, the governor’s office began accepting applications for the state’s new $20 million initiative Border-to-Border program. We hope this new report will serve as a resource for potential applicants and other community leaders across the U.S. interested in taking charge of their broadband destinies.

... Read more

Posted March 19, 2014 by christopher

Local governments in Minnesota have been at the forefront of expanding fast, affordable, and reliable Internet access - often in some of the most challenging areas of the state. ILSR has just released a policy brief to explore some of these approaches: Minnesota Local Governments Advance Super Fast Internet Networks.

The full report is available here.

The brief examines five communities that have taken different approaches to expanding access, from working with a trusted local partner to creating a new cooperative to building community-wide FTTH networks.

Lac qui Parle County has worked with Farmers Mutual Telephone cooperative to bring fiber networks to those who had been stuck on dial-up. Finding itself in a similar situation with no reliable partner, Sibley County is creating a new coop to work with.

Scott County built a fiber ring to connect community anchor institutsion to dramatically expand access to high capacity networks and lower telecommunications budgets. That network has helped to lure several major employers to the area by leasing fiber to them.

Windom and Monticello have built FTTH networks in extremely challenging conditions. Though Windom is far smaller than most have believed is feasible to build such a network, it has thrived and is now connecting many of the small towns surrounding it. It was essential in retaining jobs in the community that would have been lost without it and has attracted new jobs to the region. Monticello is a younger network and has remarkably benefited the community even as it has struggled financially due to dirty tricks from the telephone and cable companies.

The policy brief makes some policy recommendations while focusing on some local solutions to difficult problems in ensuring all Minnesotans have fast, affordable, and reliable Internet access.

Posted September 24, 2013 by christopher

For my money, the best headline of last week was "The U.S.'s crap infrastructure threatens the cloud." The rant goes on to explain just how crummy our access to the Internet is.

As a patriotic American, I find the current political atmosphere where telecom lobbyists set the agenda to be a nightmare. All over the world, high-end fiber is being deployed while powerful monopolies in the United States work to prevent it from coming here. Some of those monopolies are even drafting "model legislation" to protect themselves from both community broadband and commercial competition.

He nails a number of important points, including the absurdity of allowing de facto monopolies to write the legislation that governs them. However, Andew Oliver's article is a bit muddled on the issue of "monopoly." I have argued with several people that the term "monopoly" has historically meant firms with large market power, not the more stringent definition of "the only seller" of a good. It is not clear how Oliver is using the term.

Because of this confusion, you can come away from his piece with the firm idea that it is primarily government's fault we have a duopoly of crap DSL and less crappy cable. He repeatedly says "state-sponsored monopolies." However, no local or state government may offer exclusive franchises for cable or telecom services and the federal government hasn't officially backed monopolies for decades.

This is a key point that many still fail to understand - a majority seem to believe that local governments bless monopolies when local governments actually are desperate for more choices. This is why they fall all over themselves to beg Google to invest in their community or they build they own networks (over 400 communities have wired telecom networks that offer services to some local businesses and/or residents).

Poor laws and regulations have helped the massive cable and telephone companies to maintain their status - that is why they spend so much on lobbying and political contributions at all levels of government. They want to and have successfully corrupted the process, neutralizing the power of government to protect consumer interests and prevent a few firms from dominating the market.

... Read more

Posted September 19, 2013 by christopher

Monticello Minnesota may be located 40 miles outside Minneapolis, but it is the center of the planet when it comes to FTTH competition. We have tried and cannot identify another community localed on planet earth with two separate FTTH networks going head to head across the entire community.

We have long written about Monticello, most recently to look at hypocritical criticism of the project (which gives me an opportunity to note a similar dynamic in Lafayette, Louisiana). And we have covered the disappointing news that the network has not produced enough revenue to make full bond payments.

Short explanation for how Monticello came to be unique in having two FTTH networks: Monticello had poor Internet access from Charter and telephone company TDS. Each refused to invest after local businesses and elected officials implored for better networks. Monticello started building its own FTTH network (Monticello FiberNet) and TDS sued to stop the project while suddenly decided to upgrade its slow DSL to fiber. Lawsuit was tossed out and Monticello finished its network.

In most community fiber networks, the DSL provider seems to fade away because it cannot offer the fast speeds of fiber or cable, so the market basically remains a duopoly with the community network replacing the telephone company (which continues to offer cheap, slow DSL to a small number of customers). But in Monticello, Charter and TDS engaged in a price war, which has really hurt the City's ability to generate enough revenue to pay its debt.

Price wars are very hard on new market entrants because they have to amoritze the cost of their investment whereas the incumbents often have already done so. This means incumbents can almost always offer lower prices if they are determined to do so.

In many communities, we have lacked clear evidence of predatory pricing - that is pricing below the actual cost of service to run competitors out of business. This would violate federal law (if any agency bothered to enforce it).... Read more

Posted July 18, 2013 by christopher

Rant Warning...

Every state has at least one organization, often calling itself a think tank, that is funded by large corporations to advance their narrow interests, often at the expense of local businesses and the larger public.

Many call these "coin operated" think tanks because they take whatever positions their funders want them to take. Or, a more charitable explanation is that some massive corporations are simply channeling money to those few people who honestly believe that we would all be better off if BP or Comcast or Goldman Sachs had no regulations to worry about.

In Minnesota, one of these is called the "Freedom Foundation" of Minnesota. I tend to ignore them for a variety of reasons.

  1. There just isn't enough time.
  2. They are really, really ignorant. Their papers and posts are so filled with errors in basic fact, it would take a LOT of time to correct them - which brings me back to point 1. (Nonetheless, they are influential because the lobbyists of the companies that fund them distribute their propaganda throughout the capitol that they appear to actually live in.)
  3. Mentioning them can legitimize them.

So here I am, mentioning this group because I just noted a curious example of their utter lack of integrity.

For a few years, the "Freedom Foundation" has worked on telecommunications issues, mostly writing nasty, slanted articles twisting the words of public officials to discredit projects. Given the problems faced by Monticello (as we have covered), they have had a field day there - even tracking down a bondholder that is losing part of his investment.

The fallout from Monticello FiberNet will cost bondholders something like $19 million or about 65 percent of their investment. And the City will likely spend millions in public dollars on the network when it was originally to be paid for entirely by the revenue bonds. This is certainly disappointing. But in Monticello, FiberNet is not the only difficulty - Monticello happens to host one of Xcel Energy's nuclear power plants.

Cost overruns there are taking a $320 million project and turning it into a $640 million project, which will be paid for by ratepayers across Minnesota, including myself.

Yikes, right? I mean if the "Freedom Foundation" is incensed at how unjust it is for... Read more

Posted June 20, 2013 by christopher

It has been about a year since we checked in on FiberNet Monticello, a city-owned FTTH network about 40 miles northwest of Minneapolis. At that time, the network was generating insufficient revenue to meet debt payments, the private company operating the network (HBC) was stepping down, and Gigabit Squared was kicking the tires.

Since then, Gigabit Squared and Monticello decided against a partnership and the City ceased making payments to bondholders. Previously, the City had covered the difference between revenues and debt payments by borrowing from the City's liquor store fund, a municipal enterprise fund.

Monticello had financed the network with unbacked revenue bonds, meaning investors understood from the start that the full faith and credit of taxpayers would not "make them whole" in the event that the network did not create the revenues necessary to pay back the bond. Because Monticello chose that financing method, it had to pay a higher interest rate - those who buy bonds understand the differences in risk with different types of bonds and rates.

However, the City has been negotiating with bondholders for a settlement to avoid potential lawsuits over the telecom utility and because this is a typically what how these situations are worked out. Bondholders will "take a haircut" in the parlance of finance rather than risk a total loss.

Last week, Monticello City Council approved a $5.75 million proposed settlement in addition to the remaining funds left in the reserve fund, totaling approximately $8 million from an outstanding bond of $26 million. Final resolution may take many more months, but the major arguments seem to be worked out.

This means that Monticello will own and continue to operate FiberNet Monticello. It also means that rather than having a network financed by revenue bonds, the network will have benefited from City funds from the liquor store and will almost certainly be re-financed with other City funds. Monticello could issue a bond for the new $5.75 million but to my knowledge, no one has suggested that.

Thus far, the impact on... Read more

Posted June 29, 2012 by christopher

Monticello faced a number of key decision moments throughout the history of its FiberNet. Given the recent changes in management and decision not to make up the different between debt service and revenues, some may be wondering if proceeding with FiberNet was the smart decision.

It was 2008 and the economy hadn't entered its death spiral. Monticello had overwhelmingly voted by a 3:1 margin for the local government to bond for and build the network.

When Monticello was beginning to sell its bonds, the incumbent telephone company (TDS) filed a lawsuit against the City, with the extremely dubious claim that Monticello did not have the authority to do what other cities in Minnesota had done. Courts later tossed it, finding that the TDS suit had no merit and making TDS reimburse Monticello for some of its costs due to the frivolous suit.

But the goal was never to win the lawsuit, it was to delay and harass. Monticello had to wait a year to begin building its network. Though TDS had previously maintained that its DSL was just fine for the needs of residents and busineses, it began pulling permits to significantly upgrade its DSL to a FTTH product. (TDS has steadfastly maintained, while investing more in Monticello than any other Minnesota community, that community networks result in less investment from incumbents.)

At any rate, Monticello had a decision. It faced an expensive court case and the City's action was apparently driving TDS to improve its poor network. Monticello could have backed down in the face of TDS' bullying.

And if it had? From what we have seen elsewhere, this is our best guess:

TDS Telecom Logo

TDS could have delayed its upgrades or changed its mind entirely when the economy tanked. If it continued with upgrades, it would likely have made some token investments but not lowered its prices because the threat of actual competition was removed. It certainly wouldn't have unveiled broadband tiers that were superior on speed and price to those in Minneapolis / St Paul metro area.

If they had unveiled a high-speed option like the 50/20 Mbps package, they likely would have priced it sufficiently high that few took it and then would have used that as... Read more

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