Tag: "utopia"

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 April 21, 2017 by lgonzalez

The Utah Telecommunications Open Infrastructure Agency’s (UTOPIA) regional fiber network serves communities in the north central region of the state. Without the publicly owned network, it’s doubtful the eleven communities served would have access to high-quality Internet access. It’s almost certain they wouldn’t be able to choose between so many providers who operate on UTOPIA's open access infrastructure. Now, the city of Bountiful, Utah, wants the network to extend its reach to their community.

Reaching Out To Other Communities

Recently, the city council voted to give UTOPIA a franchise agreement so the network but the city will not contribute financially to the deployment. According to the Standard Examiner, officials from the networks anticipate the first customers will be business subscribers who would help pay for the expansion.

Bountiful isn’t alone - other communities have granted franchise agreements to UTOPIA.

“This is just kind of a natural progression out of the Salt Lake Valley,” said [Roger] Timmerman, executive director of UTOPIA… The deal “brings more options to Bountiful,”

Bountiful City Councilman Richard Higginson described UTOPIA as a “proven player” in an email to the Standard Examiner. Other communities with franchise agreements include Salt Lake City, Draper, South Jordan and Pleasant Grove. Higginson wrote:

“If UTOPIA and its member cities find that providing services to customers in neighboring cities benefits their operation, then it could be a win-win for both UTOPIA and non-UTOPIA cities alike."

The franchise agreements will allow UTOPIA to deploy in cities' rights-of-way in order to connect customers to the network.

Broadband Benefits In UTOPIA Towns

Last fall we spoke with Mayor Karen Cronin from Perry City, which already connects to the UTOPIA network. She described how competition from the open access network has improved local services, the economy, and the general quality of life. Roger Timmerman participated in the interview as well. Listen to the podcast here.

There are... Read more

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 November 4, 2016 by lgonzalez

Consumers should be able to expect a certain amount of privacy and recent rules adopted by the FCC are a step in the right direction. That step has also revealed some key differences between profit-driven national Internet service providers, smaller ISPs, and municipal networks. The different attitudes correspond with the different cultures, proving once again that small ISPs and munis have more than just profit in mind.

On October 27th, the FCC adopted an Order to allow ISP customers to determine how their data will be collected and used. According to the FCC, they made the decision in response to public comments about the concern for personal data protection.

The New Rules

Over the past few years, consumers have become savvy to the fact that ISPs have access to personal data and that they often sell that data to other companies for marketing purposes. Under Section 222 of Title II of the Communications Act, telecommunications carriers are bound to protect their subscribers’ private information. Because those rule are designed to change as technology changes, says the FCC and Congress, this same authority applies to private data collected by ISPs. 

The FCC decided to divide the permission of use of personal information based on type, categorizing information into “sensitive” and “non-sensitive.”

Sensitive information will require ISPs to obtain “opt-in” consent from subscribers, which will allow them to use and and share this type of information:

logo-xmission.jpg

  • Precise geo-location 
  • Children’s information
  • Health information 
  • Financial information
  • Social Security numbers
  • Web browsing history
  • App usage history
  • The content of communication 

Non-sensitive information would include all other information and customers would need to "opt-out" in order to prevent their ISPs from collecting such data. Examples of non-sensitive personal information include service tier information.

The new rules also require providers to follow “up-to-date and relevant industry best practices” in reference to managing security... Read more

Posted October 14, 2016 by Anonymous

This is episode 223 of the Community Broadband Bits podcast. Eleven communities in Northern Utah are now served by a regional open access fiber-optic network, UTOPIA. Perry City's Mayor Karen Cronin and UTOPIA's Executive Director Roger Timmerman join the show. Listen to this episode here.

Karen Cronin: We don't have the money that some of the lobbyists are getting from big companies, but we have a voice and I think that our legislatures will listen to local voices if they have the courage to step forward.

Lisa Gonzalez: This is episode 223 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. The Utah Telecommunications Open Infrastructure Agency, also known as UTOPIA, began serving north-central Utah in 2004. The regional open access fiber-optic network has had its share of challenges since launch, but has slogged through them to now bring healthy competition to residents and businesses in 11 communities. Joining Chris this week are the mayor of one of the UTOPIA cities, Karen Cronin from Perry. Roger Timmerman, executive director of UTOPIA, is also part of the conversation. Our guests share stories about how competition has benefited local businesses and residents. They also describe infrastructure sign-up choices they have as property owners in a UTOPIA community and what it's like to have more than one or two ISPs at your feet. Now here are Chris, Mayor Cronin from Perry, and Roger Timmerman, executive director of UTOPIA.

Christopher Mitchell: Welcome to another episode of the Community Broadband Bits podcast. I'm Chris Mitchell. Today I'm speaking with two wonderful guests from the state of Utah. Roger Timmerman is the executive director of UTOPIA, the Utah Telecommunications Open Infrastructure Agency. Welcome to the show.

Roger Timmerman: Thank you. Thanks for having me on.

Christopher Mitchell: Perry City mayor, Karen Cronin. Welcome to the show.

Karen Cronin: Thank you. I'm delighted to be part of the conversation.

Christopher Mitchell: I'm excited to talk more about what's happening in Utah today. You've all been trailblazers in open access approaches. Roger, I think you were only of... Read more

Posted October 13, 2016 by lgonzalez

In the north central region of Utah, eleven communities are now served by a regional open access fiber-optic network operated by the Utah Telecommunications Open Infrastructure Agency or UTOPIA. UTOPIA’s Executive Director, Roger Timmerman, and Mayor Karen Cronin from member community, Perry City, take time to speak with us for Community Broadband Bits episode 223.

One of the great advantages UTOPIA has brought the region is the element of competition. Rather than facing a choice of only one or two Internet Service Providers like most of us, people in UTOPIA cities sign up for a connection to the network and then choose from multiple providers who offer a range of services via the infrastructure. Competing for business brings better products, better prices, and better customer service.

Since launching in 2004, UTOPIA has faced financial uncertainties created by onerous state laws that force a wholesale model on publicly owned networks. Regardless, Mayor Cronin has seen the network improve connectivity in her community, which has improved the local economy and the quality of life. After working with the network since the early days, Roger sees that UTOPIA’s situation is on the upswing but has witnessed firsthand how those harmful state laws limiting local authority can put a smart investment like UTOPIA in harm’s way.

Read the transcript of the show here.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 25 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to mojo monkeys for the music, licensed using Creative Commons. The song... Read more

Posted May 23, 2016 by lgonzalez

When communities decide to proceed with publicly owned infrastructure, they often aim for open access models. Open access allows more than one service provider to offer services via the same infrastructure. The desire is to increase competition, which will lower prices, improve services, and encourage innovation.

It seems straight forward, but open access can be more complex than one might expect. In addition to varying models, there are special challenges and financing considerations that communities need to consider.

In order to centralize our information on open access, we’ve created the new Open Access Networks resource page. We’ve gathered together some of our best reference material, including links to previous MuniNetworks.org stories, articles from other resources, relevant Community Broadband Bits podcast episodes, case studies, helpful illustrations, and more.

We cover: 

  • Open Access Arrangements
  • Financing Open Access Networks
  • Challenges for Open Access Networks
  • U.S. Open Access Networks
  • Planned Open Access Networks

Check it out and share the link. Bookmark it!

Posted March 3, 2016 by ternste

Jesse Harris over at FreeUTOPIA is noting an important shift in the discussions and controversies that surround Utah’s UTOPIA open access network. For starters, as the network is increasingly showing signs of financial success, he’s noticing that critics of the network have gone silent. Meanwhile, more and more people in the region seem to be interested in getting connected to the network. 

After almost a decade spent covering the UTOPIA open source network, Harris declared victory for UTOPIA and for local authority over broadband access in Utah.

We’ll let Jesse take it from here:

UTOPIA is probably in the best shape it has ever been in. They have or will soon hit operational break even, where all operating expenses are now covered by revenues. Between remaining UIA money and the RUS settlement, they have operating capital they can use to expand the network. In fact, expansion is now underway in Perry, Layton, Midvale, and West Valley City. All of the expansion is being done to demand and the cost is landing squarely on subscribers.

Even the public attitude is different. I don’t see baseless fact-free editorials against it with any notable frequency. Even the Utah Taxpayers Association has gone uncharacteristically silent. Orem elected pro-UTOPIA candidates. Murray has been actively working on ways to maximize the network in their city. Payson reportedly even shows up to board meetings with regularity now. From many sources, I hear less “how do we get rid of it” and more “how do I get it in my house”. The importance of competitive, fairly priced, and high performance broadband has entered the mass consciousness in a way that I haven’t seen it before. Most importantly, highly visible failures by incumbents to deliver the kind of broadband nirvana they’ve been promising for decades has made the public highly cynical to their claims.

There is still work to do. UTOPIA has a lot of network to build to serve every address in member cities. There are a lot of areas badly neglected by incumbents that don’t have any kind of viable competition. Google is great for those that have it but creates a lot of have nots and replaces one duopolist with another. The companies who are doing interesting... Read more

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