This is the transcript for Episode 257 of the Community Broadband Bits Podcast. Christopher Mitchell and Colman Keane discuss Chattanooga, Tennessee. The city's network has community support with a high number of subscribers. Listen to this episode here.

Colman Keane: When you look at Chattanooga, it was really the perfect time, and really a good place to launch this. When you're able to bring something like this to an engaged community, then you can get the benefits that Chattanooga sees.

Lisa Gonzalez: This is episode 257 of the Community Broadband Bits Podcast from the Institute for Local Self Reliance. I'm Lisa Gonzalez. Colman Keane is back on the show for an update on the situation in Chattanooga, Tennessee. In addition to surpassing expectations for subscribers, the municipal utility is doing very well financially. Electric rates have been kept in check for everyone in the EPB service area, regardless of whether or not they use the fiber to the home Internet service, and the infrastructure smart grid has kept expensive outages to a minimum. Colman and Christopher also talk about the Chattanooga community, and how it's culture has contributed to the success of the network, which has in turn provided multiple benefits.

First, we want to urge you to take a moment to help us out, by contributing at Muninetworks.org, or ILSR.org. Shows like this don't have commercial interruptions, and we like it that way. But they still cost money to produce. If you're already a donor, we want to thank you. Your contributions help spread the facts about municipal networks, so kudos to you for participating. Now, here's Christopher with Colman Keane from Chattanooga's EPB.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits Podcasts. I'm Chris Mitchell. Again, coming at you from Mountain Connect in Keystone, Colorado, a wonderful regional conference, one of the best in the nation. I'm here today with Colman Keane, the Director of Fiber Technology for EPB Chattanooga. Welcome back to the show.

Colman Keane: Thank you very much.

Greeley, Colorado, will likely ask voters to consider opting out of state law SB 152 this fall. City Council members from the city of 100,000 people decided on June 6th to join with nearby Windsor (pop. 18,500) to fund a feasibility study, which will be completed this fall.

Almost One Hundred

Ninety-eight communities across the state of Colorado have voted to reclaim local telecommunications authority via the ballot box. In 2005, the state legislature passed SB 152, which discourages public investment in Internet network infrastructure. Even if local communities want to work with private sector partners, they need to present the question or risk running afoul of the state law. 

As an increasing number of towns and counties realize that high-quality connectivity will not come from national providers, they are choosing to present the question to the voters. Whether they have immediate plans or simply consider the matter a question of local authority, all have chosen to free themselves from the confines of SB 152. This spring, Central City and Colorado Springs held referendums and both passed the measure to opt out.

Taking It Slow

Greeley isn’t in a rush as it considers a publicly owned solution to their connectivity problems. In September 2016, city leadership decided to take incremental steps and directed staff to research options. According to a Greeley Tribune article at the time:

Councilman Robb Casseday said he was talking with a business considering a move to Greeley recently, and that Internet access was first on its priority list.

"Internet is going to be more and more of a future commodity that is going to be as important, I think, as water and sewer to a municipality," he said.

That's what got him on board with considering making high-speed Internet a city utility.

Lac qui Parle County in western Minnesota has some of the best connectivity in the state. As part of the county’s efforts to get the word out about opportunities in the region, their new Facebook video highlights access to great Internet access and hopes to draw more citizens to the region.

"Come for the Jobs. Stay for the Lifestyle"

Pam Ellison, Economic Development Director for the County, describes the network that is available across the county to businesses and residents. High-quality Internet access is a way to retain businesses, attract new endeavors, and entice people to fill new positions.

Back in 2009, the county began working with Farmers Mutual Telephone Cooperative to find a way to improve Internet access. Through their collaboration, the two entities received a 2010 American Recovery and Reinvestment Act (ARRA) to deploy Fiber-to-the-Home (FTTH) connectivity and replace antiquated dial-up. At the time, about 52 percent of premises were still using their telephones to connect to the Internet.

Lac qui Parle had approached incumbent providers, but none were interested in upgrading in the sparsely populated region. Farmers Mutual Telephone Cooperative had deployed in other communities in western Minnesota and had the experience required in such a rural area. The project’s $9.6 million ARRA combined grant and loan allowed the project to be completed by the summer of 2014. Read more details about the network and the story in Lac qui Parle County in our 2014 report, All Hands on Deck: Minnesota Local Government Models for Expanding Fiber Internet Access.

Check out Lac qui Parle County’s video:

Sandpoint, Idaho’s fiber-optic infrastructure is ready to lease to Internet Service Providers (ISPs) interested in serving the north Idaho town. A regional provider recently announced that it will take advantage of the community’s fiber to expand its network by leasing dark fiber from the city to serve local commercial subscribers.

Big Plans Begin To Unfold

The city installed fiber during road project construction over a five-year period. About a year ago, Sandpoint released a Request for Proposals (RFP) to help the community of 9,700 people make strategic use of its dark fiber network. In addition to leasing dark fiber to providers, the network will serve municipal needs such as public safety and city offices. In February, the City Council established rates for dark fiber leasing and maintenance.

Things have been somewhat quiet until Intermax Networks announced that it has entered into an agreement with the city to lease excess capacity on Sandpoint’s network and will use the new infrastructure to offer connectivity to local commercial subscribers.

President Max Kennedy said in an official statement:

"We’ve provided fiber services to commercial businesses in Sandpoint for years, but today we are proud to be the first private partner with the City of Sandpoint to expand our network by licensing space on the city’s new fiber infrastructure.

…

Sandpoint has been an integral part of Intermax since the company was founded in Sandpoint in 2001. This year we are going to be dramatically expanding our service capacity in Sandpoint, and we’re pleased to be working with the city on this great project."

Intermax serves commercial sites throughout northern Idaho with fiber and connects to peer networks in Seattle and Portland. The company also provides a variety of services to residential customers and anchor institutions in Kootenai, Bonner, Boundary, and Spokane Counties.

Don't Forget Mr. And Mrs. Sandpoint

Celina, Texas, recently started its journey toward publicly owned Internet infrastructure by adopting a smart, forward-thinking conduit ordinance. The decision to adopt the new Easement Ordinance is part of the city’s long-term vision to bring gigabit connectivity to businesses and residents.

Developers' Contribution

The new policy requires developers to install conduit and fiber-optic cable in underground excavation within the city limits. Developers pay for the installation and then convey the assets to the city. In order to reduce the need for excavations and cut costs, Mount Vernon, Washington, passed a similar ordinance years ago as they developed their network. Up to 90 percent of costs associated with underground deployment are often due to the excavation rather than materials; smart dig once policies like Celina's saves public dollars.

Internet service providers who wish to offer connectivity in the areas where city fiber and conduit exist will be required to use available dark fiber from the city, rather than deploying their own infrastructure. The ordinance does allow the city provide exceptions in order to promote competition and reduce any barriers to entry for new ISPs.

Before the city council unanimously voted to support the new ordinance in May, they took feedback from the community. According to the Celina Record, several local developers expressed excitement over the Gigabit City Initiative, but weren’t as enthusiastic about the ordinance. Their main concern was how the new rule would be implemented.

They have reason to be excited about the potential to add Fiber-to-the-Home (FTTH) connectivity to their new properties. In 2015, the Fiber To The Home Council’s study determined that FTTH access can add up to $5,437 to the value of a $175,000 home.

Residents Require Something Better

The Fibre Centre began linking Boston and Moncton, New Brunswick, Canada, in April 2015 with dark fiber. The network neutral 25,000 square foot is a network-neutral data center and meet-me-room where physical networks can connect. The project “offers a route around the big-city carrier hotels” and its visionaries hope to reproduce it in other communities.

Hub City Updated

In 2000, a now defunct company invested $960 million to lay a giant fiber-optic cable between the Canadian Maritimes and Europe. When the company went bankrupt, Hibernia acquired the fiber, which runs under the community of Moncton. There is also a second similar cable running in the city of about 72,000 people, which put Moncton in a good location for a colocation facility. The community obtained the nickname “Hub City” back when railroads where the main form of transportation, but the nickname still applies.

The city helped establish the Fibre Centre within Moncton as a way to contribute to economic development and improve services for the city. One of the owners of the facility, Hunter Newby, has visited us for the Community Broadband Bits podcast episodes 111 and 104. Newby has been involved in other carrier neutral projects and hopes to reproduce this model in other communities.

Ryan Sorrey, Director of Information Systems for Moncton described some of the benefits to the city:

“Our partnership with the Fibre Centre has provided our organization with several advantages, including enhanced reliability, access to higher speed network(s), and opportunity for increased connectivity between municipalities for greater collaboration, and the benefit of more direct connections to major cloud providers.”

Economic Development

Franklin, Kentucky's Electric Plant Board is now offering Fiber-to-the-Home (FTTH) connectivity in limited areas of town through a pilot project. Franklin EPB wants to experiment with the possibility of bringing high-quality Internet access and VoIP to all its customers.

Businesses First, Now Residents

In 2013, Franklin EPB began serving local businesses after national providers refused to install fiber connectivity in local industrial parks. Community leaders in Franklin knew that retaining existing businesses and attracting new opportunities relied on fast, affordable, reliable connectivity and that giving up was not an option. The town already had experience with its own electric utility and chose to deploy and manage a municipal fiber network to spur economic development, improve connectivity for municipal facilities, and to enhance communication for EPB facilities.

A $1 million U.S. Department of Commerce Economic Development Administration grant combined with municipal bonds funded the initial deployment. The network encouraged a local establishment, Tractor Supply Company, to invest in a Franklin distribution center adding more than 330 jobs to the community.

Rural Kentucky Connecting

Approximately 8,400 people live in Franklin, which is located in central Kentucky along the southern border. Franklin is only about 90 minutes from Clarksville, Tennessee - another community with publicly owned fiber.

For now, residents in the pilot area can sign up for 100 Megabits per second (Mbps) download speeds for $50.00 per month. The pilot program page doesn’t describe them as symmetrical, but doesn’t list upload speeds. A gigabit option is not yet available but is listed as "to be determined." Installation is $49 and VoIP activation is $29.95. 

In 2004, about 90 percent of multi-tenant company-owned buildings were not connected to fiber for connectivity. In April, Vertical Systems Group revealed that in 2016 that number had dropped to 50.4 percent. The results underscore the fact that businesses understand the importance of fiber as a basic commercial amenity and strive to obtain it in their own facilities.

“Fiber footprints have been highly valued assets in nearly every merger transaction in the industry during the past two years. The density of fiber lit buildings on-net and geographic reach are significant competitive differentiators,” said Rosemary Cochran, principal at Vertical Systems Group. “For 2017, network providers report that fiber footprint expansion is the top factor that will drive Carrier Ethernet growth and support rising demand for other gigabit-speed services.”

In addition to data transport and online commerce, companies need high capacity and reliable connectivity to share files with potential partners. Depending on the type of work they do, transactions may depend on split second data delivery, which only fiber can provide.

As an increasing number of communities consider investing in fiber-optic networks, economic development is often cited is their first consideration. Without fast, affordable, reliable connectivity readily available, companies looking to relocate will move on and take jobs with them.

Eastern Shore of Virginia Broadband Authority (ESVBA) has expanded its fixed wireless coverage area to include the community of Bloxom. The organization has also approved plans to expand its Fiber-to-the-Home (FTTH) deployment beyond the test project town of Harborton.

Towering Above The Shore

ESVBA opened its Bloxom Tower last fall so residents and businesses in the rural community of about 380 people. The tower enables better connectivity in the underserved town and provides better cellular coverage. ESVBA is also providing a free wireless hotspot near the tower.

In order to stimulate competition and provide choice to potential subscribers, ESVBA’s Broadband Initiative Program will provide free Internet access and transport for up to 12 months for wireless ISPs.

In a press release, Chris Kreisl, of the Bloxom Town Council said:

“We knew how important it was for us to have this kind of infrastructure. Without it, we were being left behind as the information economy continued to push citizens around the globe online. Now, Bloxom businesses have the opportunity to compete on equal footing.”

The ESVBA

We introduced readers to the not for profit ESVBA in February. The open access middle mile network began in 2008 with funding from Accomack and Northampton Counties. The organization has obtained about $8 million dollars for deployment and expansions, some from NASA and the National Oceanographic and Atmospheric Administration, which use the infrastructure. ESVBA returned Accomack and Northampton counties’ investments when the network became sustainable.

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