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Community Broadband Bits 12 - Todd Murren with SpringNet, Missouri

The 12th episode of the Community Broadband Bits podcast features an interview with Todd Murren of SpringNet, in Springfield Missouri. SpringNet delivers blazing broadband over Ethernet to businesses in the community. We talk about Missouri's strong restrictions on local authority around broadband and the history of SpringNet. We also discuss how SpringNet has led to hundreds of new jobs in the community from one single employer, to say nothing of the many others. We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address. This show is 30 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment! Listen to previous episodes here. You can download the Mp3 file directly from here. Read the transcript of this episode here. Find more episodes in our podcast index. Thanks to Fit and the Conniptions for the music, licensed using Creative Commons.

Martinsville, Virginia, Investigates Network Expansion

Not long ago, we shared information on MINET, the municipal network in Martinsville, Virginia, that serves schools, municipal facilities, and about 30 local businesses. We noted that businesses are attracted to the area and cite the capabilities of the fiber network as a driving force.

The Martinsville Bulletin now reports that city leaders have been approached by more local businesses interested in saving money by connecting through the network. The Bulletin spoke with City Manager Leon Towarnicki who said "we are essentially maxed out”  in staff and resources. Obviously, economic development through MINET is moving along well. The City Council is now considering the costs and benefits of expanding.

The city is working with CCG Consulting to develop a business plan. CCG will soon begin a business and residential survey and review of the city's current network. The survey and plan will explore the possibility of deploying a fiber-to-the-home network and communication system, but Martinsville will shy away from operating a cable television system. From the article:

Asked if the city would try to provide cable TV service again, City Attorney Eric Monday said, “We tried it. We litigated. We lost. We’re done.”

Martinsville made an attempt to acquire a retail cable television service in 2006, but found itself in a long and expensive court battle. Adelphia had previously provided cable in the area but filed for bankruptcy in 2002 and as a result, failed to honor its franchise agreement. At the time, the city landfill had just closed and the city was looking for other ways to generate revenue. They wanted to purchase the network and tried to block Time Warner Cable and Comcast from doing so. Time Warner Cable wanted to purchase the network and then engage in a like-kind exchange. This technique is a common tool large cable corporations have used to ensure geographic monopolies.

Chattanooga Gets 150 More Jobs... From Comcast

Just on the heels of Time Warner Cable announcing 81 new jobs in Kansas City in response to the newly competitive environment created by Google's Gig, we learned that Comcast is adding more jobs to its workforce in Chattanooga.

In talking points, the lobbyists and spokespeople for these major carriers often claim that community networks will result in less investment from the existing providers, not more. This is theoretically absurd, as competition drives increased investment. And empirically, we almost always see existing providers invest more as a response to losing their monopoly, not less.

According to Ellis Smith of the Chattanooga Times Free Press, 150 new jobs will be added by the end of the year. Ellis spoke with Jim Weigert, vice president and general manager of Comcast Chattanooga:

"Chattanooga is often at the top, not only in our division but across the country in terms of performance,” Weigert said. “Our strength and record of success made it a contributing factor when they selected a location."

Comcast and others, including AT&T, have had to step up their game in Chattanooga to keep customers who suddenly had a real choice. 

Regardless of whether or not today's Chattanoogans connect to its publicly owned network, they benefit. Consumers get better service, affordable rates, and advanced technology simply because the network has created competition.

Google Creates Competition in Kansas City, TWC Hires 81 People

A Business Journal story yesterday reveals that Time Warner Cable is adding 81 jobs in Kansas City, an increase of 9% over its present area workforce:
The company, which currently employs about 900 locally, wants to fill customer service, finance, sales and other positions.
These are the jobs that result from competition - which does not exist when the providers a limited to a complacent duopoly comprised of a single cable company and a single telephone company. This is one of the way that community networks create jobs. Community Networks create traditional jobs to offer their own services (and a multiplier effect by using local accounting, local marketing, and other services). But they also create more revenue for local papers (advertising) and job opportunities with rival companies that suddenly need to fight for subscribers. On a different track, Light Reading says it has a copy of Google's franchise with the city and notes that Google is under no obligation to serve everyone in the city. However, Karl Bode rightly notes that it was the state legislature in Kansas, flush with AT&T campaign contributions, that revoked the authority of local governments to require cable providers to serve everyone. Presently, 14 "fiberhoods" in Kansas and 49 in Missouri have met the registration goals and will be among the first served. Google will build to any fiberhood that meets the minimum threshold of interest. One cannot blame Google then for only building where they will profit. In fact, this is what one would expect any rational profit-maximizing company to do. It is a failure of governance to require that everyone have access to an essential infrastructure. And we know what causes these failures of governance - systematic legalized bribery in our campaign finance system. Light Reading does note that the franchise is far more generous to Google than overbuilders can typically negotiate. This is a result of Google offering such a unique product. Local leaders decided to effectively subsidize Google's network with favorable terms in the right-of-way, including making inspections as quick and painless as possible.

Provo's Publicly Owned Broadband Network Attracts 98 Jobs

Fresno's loss will be Provo's gain. Why? Because Provo built its own network and can meet the modern telecommunications needs of businesses. A company is moving from Clovis, in Fresno County (California), to Provo, Utah. The Business Journal covered the story:
Clovis-based Secure Customer Relations, Inc., plans to move its entire operation to Provo, Utah this month, resulting in the loss of 98 jobs. ... Secure Customer Relations operates a call center that specializes in appointment setting, client prospecting and other functions on behalf of the insurance industry. Overall, the cost of operations in Provo would be a savings over Clovis, Carter said, including labor costs. He added that Clovis does not have the same level of fiber optic infrastructure as Provo.
Interestingly, Clovis is slated to get better access to broadband as part of the stimulus-funded
Central Valley Next-Generation Broadband Infrastructure Project. Unfortunately, that is one of them any middle mile projects that will connect community anchors but not offer any immediate benefits to local businesses and residents. It is a middle mile project, not a last-mile project that would build a fiber-optic access network like Provo has connecting everyone. This is not to demean the middle-mile project, but such things are often misunderstood (sometimes due to deliberate obfuscations by those promoting them). And speaking of obfuscation, the Economic Development Corporation of Utah apparently wants the Utah state government to take credit for this company moving to Provo.
"We move a lot of data and need high capacity," CEO Carter Beck told the Journal last week. His company specializes in appointment setting, client prospecting and other functions on behalf of the insurance industry. The relocation of companies like Secure Customer Relations, Inc.

Johnson City Teams up with BVU Authority for Broadband

We have been watching Johnson City, Tennessee, examine its options to improve broadband options in their community using extra capacity from fiber-optic investments for smart-grid implementation. Johnson City has been looking for a partner that would offer services to local businesses and perhaps residents. We were concerned about that approach as a private-sector partner may be interested only in finding the most lucrative high-margin customers rather than seeking ways to serve the whole community. We are now relieved to learn that Johnson City and BVU Authority have made an initial agreement and are working toward a final contract. BVU Authority originated in and continues to be based out of nearby Bristol, Virginia. We have long covered BVU Authority and just recently published a case study about them. BVU Authority should be an excellent match as they provide excellent business services (they are tremendous pioneers in this regard) and have a focus on serving the community as a whole. BVU Authority's investments in southwestern Virginia have led to strong job growth and we expect them to have similar success in northeastern Tennessee.

Green Lighting In Chattanooga - Savings, Safety and Jobs

Chattanooga is once again using their municipally owned network to improve the quality of life and save money at the same time. New LED street lamps have been installed all over the City and the anticipated energy savings are expected to be significant. In addition to the obvious, saving money with more efficient LED lights, the City anticipates cutting costs in other ways associated with the change. From a recent Mary Jane Credeur Bloomberg Businessweek article:

Almost a third of Chattanooga’s annual energy bill comes from old high-pressure sodium streetlamps. At any given time 5 percent of the bulbs are burned out, and they sometimes go on during the day, needlessly adding to electric bills. “You’ve got a certain amount of lights out but you have no idea where they are, so workers literally drive around in a truck looking for them, and it’s a real waste,” says David Crockett, director of the city’s office of sustainability.

The change to LEDs is expected to cut energy use by 70%. City officials, however, have taken it one step farther and have installed a whole new system that will drive those savings up to 85%, or approximately $2.7 million. Global Green Lighting, a local company, developed a sophisticated lighting system using a wireless network that is fed by EPB Fiber. The system provides the ability to control each light's output 24/7 to tailor the level of light specifically to each lamp, the environment, the time of day, and even what might be happening on the ground. When a light is not working, it can self-diagnose and send a message to maintenance describing what is broken and what is required to fix it. There is no need for manual meter readers because energy usage reports back to the electric company via the network.

The community sees enhanced public safety from the new lighting. Prior to the install of the new system, Chattanooga had frequent criminal activity in several parks at night. Also from the Credeur article:

Spirit AeroSystems Chooses Chanute

We told you how Chanute, Kansas, was using their community network to serve local businesses. Now we want to share a story about how the community network helped bring a new business to Chanute.

Chanute, who is named after Octave Chanute an aviation pioneer, adopts the motto "A Tadition of Innovation." Chanute has proven that they are serious about that mantra with the expansion of their community network. They boast free Wi-Fi in all green spaces and parks, schools that are connected with fiber and wireless, several fiber loops throughout the city, plans for a smart grid, and are even exploring FTTH capability.

Spirit AeroSystems, the world's largest supplier of commercial airplane assemblies and components, just opened a new manufacturing facility in Chanute. The plant is expected to create up to 150 new jobs in the southeastern Kansas community and will include a health clinic on site for employees.

As Spirit was approaching different communities, it had a variety of requirements that included reliable electricity and reliable broadband. Nothing exorbitant -- they weren't asking for a gig or even 100Mbps. But they needed reliability. And Chanute was poised to deliver. Publicly owned networks do not exist in a vacuum; they are often one piece of a well-run community.

If Chanute only had a slow DSL and absentee-owned cable company offering broadband, maybe Spirit still would have chosen them and maybe that would have been the tipping point for a different community. We don't know for sure. 

What we do know is that Chanute is getting more jobs and that owning their own network helped.

Mendocino County Local Leaders Want to Leave the Slow Lane Behind

VisitMendocino.com sums up this northern California community as a peaceful and serene:

"Mendocino County, where rugged coastline, breathtaking beaches, picturesque villages, majestic redwood forests and America's Greenest Wine Region beckon you to escape to a slower pace."

While the people of Mendocino County love life in the slow lane, they would love a fast lane for the Internet. Mendocino County, known for its wineries, its redwoods, and its greenery is now becoming known for its efforts to develop their own community-owned broadband.

The Mendocino County Broadband Alliance (MCBA) was borne out of a need to fill gigantic gaps in broadband coverage created by the private sector. The geological and rural nature of the area presents an insurmountable challenge to the private cable and telco business models in this spacious county of just under 88,000 residents. While there is still archaic dial-up service, spotty and unreliable satellite access, and a few communities with DSL, the MCBA reports that over half of the population has NO access to broadband.

Community leaders in Mendocino County have contemplated the need for access in their area for some time. What really drove home the urgency of the situation was the 2011 death of Esplanade, Mendocino County's small, local, independent ISP. Carol Brodsky, of the Anderson Valley Advertiser, spoke with MCBA for the story:

When Esplanade, a small, privately owned south-coast Internet service provider closed its doors in 2011, around 400 customers were left in digital darkness, according to Greg Jirak, strategic planning chair for the Mendocino County Broadband Alliance. The resultant issues cascaded and greatly affected the lives of individuals, organizations and businesses.

Jirak goes on to describe other ways Mendocino County has suffered due to the loss of a large part of the scanty Internet coverage they had:

“When Esplanade folded, the Coast Community Library was no longer able to provide public Internet access,” Jirak explains.

New Minnesota Networks Face Tough Challenges

MPR News recently ran two stories on the trials and tribulations of new and prospective broadband networks. Conrad Wilson's story about the continuing Monticello drama and Jennifer Vogel's account of factors affecting the American Reinvestment and Recovery Act (ARRA) projects give us a good idea of the many hurdles in the way of building new fiber-optic networks. We have reported many times on the drama that has unfolded in Monticello. The municipally owned fiber-optic network has faced some withering challenges and yet perseveres. Monticello asked for a modern communications network but the existing service providers, the cable and phone companies, insisted the city was "sufficiently wired." Conrad's reporting suggests otherwise:
Bill Tapper, who owns a cabinet company with clients around the world, recalls a time just a few years ago when the Internet was so slow it hurt business. "The service we had in Monticello was horrible," he said. "My employees would sometimes take the data home where they had a better Internet connection than we did and do their uploads at night." Tapper said he lost out on business, but at the time the established Internet service providers like phone and cable TV companies told Tapper and other frustrated business owners in town that the city was wired sufficiently.
Fibernet Monticello

After the community voted in favor of a publicly owned fiber-optic network, the incumbent provider, TDS, filed a lawsuit. The lawsuit strategically succeeded in stalling the development of the new network but did not destroy the project. Even though the incumbent provider describes pre-network status as "just fine before the city got involved," TDS took advantage of the delay they caused to began building their own fiber network. Currently, subscribers in Monticello are benefitting from their high-speed fiber in ways beyond expanded and improved access.