If you’re a regular reader at MuniNetworks.org, listen to our podcasts, or if you simply follow publicly owned network news, you know an increasing number of communities have decided to invest in local connectivity solutions in recent years. We’ve watched the number of “pins” on our community network map multiply steadily, but every now and then, a network drops off through privatization.

FastRoads Sold To N.H. Optical Systems

New Hampshire FastRoads received America Recovery and Reinvestment Act (ARRA), which combined with state funding, created the open access fiber optic network in the southwest section of the state. Over the next several years, the network expanded with private donations and local matching funds. Many of the premises that connected to the network had relied on dial-up before FastRoads came to town. But in part because state law makes bonding for network expansion difficult, Fast Roads will no longer be locally controlled.

The Monadnock Economic Development Corporation (MEDC), a nonprofit organization whose purpose is working to see like projects are completed that will improve economic development prospects in the region managed the project. MEDC contracted with another entity to maintain the network, which cost approximately $15,000 per month. Since they had achieved their core goal - the construction and launch of the network - MEDC had been looking for another entity to take over the network or to partner with them. They recently finalized a deal to sell the network to New Hampshire Optical Systems. 

Back in 2013, Christopher spoke with Carole Monroe, who was the FastRoads Project CEO but has since moved on to ECFiber in Vermont. She described how the introduction of the network inspired incumbents to lower prices - a win for everyone, whether they connected to FastRoads or not. She also told us how community anchor institutions (CAIs) were getting better...

It’s been a long road for Pinetops, North Carolina, as they’ve sought better connectivity in their rural community. After dramatic ups and downs, the community seems to have finally found a tepid resolution. Greenlight can, for now, continue to serve Pinetops.

With Conditions

On June 28th, the General Assembly passed HB 396, which allows Wilson’s municipal network, Greenlight, to continue to provide gigabit connectivity to the town and to Vick Family Farms but establishes conditions. If or when another provider brings Fiber-to-the-Home (FTTH) service to Pinetops, Wilson has 30 days to end service as customers transition to the new provider. Until a different provider comes to Pinetops, Greenlight will continue to offer its gigabit connectivity to the approximately 600 households and premises in the community of about 1,300 people.

In addition to premises in the town of Pinetops, Greenlight is serving Vick Family Farm, a local potato manufacturer. When the business obtained access to high-quality Internet access, they were able to expand their business internationally; they invested in a high tech distribution facility. The facility requires the kind of capacity they can only get from Greenlight.

Community leaders in Pinetops are relieved they don’t have to give up fiber connectivity, but they’re happy with the service they get with Greenlight and would rather stick with the muni.

“Although not the solution we expected, we are pleased this bill allows us to continue to leverage Greenlight’s next generation infrastructure as we focus on growing our community,” said [Town Commissioner Suzanne] Coker-Craig. “Hopefully, no other provider will exercise the option to build redundant infrastructure that our community neither wants nor needs. Pinetops has made it clear that we want the quality and speed of service that only Greenlight can provide.”

Read the text of the bill here.

What A Long, Strange Trip It’s Been...

Maine is the latest battleground for local telecommunications authority. A bill in the state’s House of Representatives threatens to halt investment in “The Pine Tree State” at a time when local communities are taking steps to improve their own connectivity.

"I Do Not Think It Means What You Think It Means"

Rep. Nathan Wadsworth (R-Hiram) introduced HP 1040; it has yet to be assigned to a committee. Like most other bills we’ve seen that intend to protect the interests of the big national incumbent providers, this one also has a misleading title: “An Act To Encourage Broadband Development through Private Investment.” Realistically, the bill would result in less investment by discouraging a whole sector - local communities - from making Internet infrastructure investment. 

Large national companies have thus far chosen not to invest in many Maine communities because, especially in the rural areas, they just aren’t densely populated. In places like Islesboro and Rockport, where residents and businesses needed better connectivity to participate in the 21st century economy, locals realized waiting for the big incumbents was too big a gamble. They exercised local authority and invested in the infrastructure to attract other providers for a boost to economic development, education, and quality of life.

Not The Way To Do This

If HP 1040 passes, the community will first have to meet a laundry list of requirements before they can exercise their right to invest in broadband infrastructure.

HP 1040 contains many of the same components we see in similar bills. Municipalities are only given permission to offer telecommunications services if they meet those strict requirements: geographic restrictions on service areas, strict requirements on multiple public hearings including when they will be held and what will be discussed, the content and timelines of feasibility studies, and there must be a referendum.

The bill also dictates financial requirements regarding bonding, pricing, and rate changes. Municipalities cannot receive distributions under Maine’s universal service fund.

As one of the remaining states...

This spring, two more communities in Colorado reclaimed the authority to build municipal networks. Colorado Springs and Central City voted to opt out of SB 152, a state law that removed local telecommunications authority in 2005.

Voters overwhelmingly chose to restore local authority to make decisions for themselves. Now the cities can discuss if a community network is right for them.

Quick Count

The Denver Business Journal covered the outcome of these April votes - noting the strong showing in rural Central City. The referendum to “opt out” of SB 152 easily passed in the small community; of the 182 ballots, 162 folks voted yes for local control [pdf]. That means 89 percent of the voters were in favor of the measure. 

In the much larger, urban community of Colorado Springs, the Colorado Springs Independent described a much tigher vote: 61 percent to 39 percent in favor of local authority. That’s about 50,000 yes votes to 32,000 no votes. Voters also decided another related ballot initiative concerning the sale of city infrastructure. Assets related to city utilities, such as water, electricity or telecom, now cannot be sold without the approval of a supermajority of 60 percent of votes cast in a referendum. 

Nearly 100 Communities Say YES

These two communities join the nearly 100 communities that have already restored local authority. Last November, 26 other communities also voted to opt out of the law. More communities may join this growing movement this fall.