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Montgomery Sees Job Gains in Alabama After Establishing Internet Exchange - Community Broadband Bits Episode 195

In a partnership with the Department of Defense, the city of Montgomery has created Alabama's first Internet Exchange. This week, project manager for Montgomery Cyber Connection, Ben Venable, joins us to discuss this project and the gains the community is already seeing from it.

The effort is a true partnership between General Steven Kwast at Maxwell Air Force Base, the city and county of Montgomery, and others like Wide Open West, the nation's 9th largest cable company. WOW!'s network architect brought not only important technical knowledge, but a major ISP that recognized the benefits of local interconnection.

We discuss how the project began, why it is important, expected (and already achieved) benefits, and how other communities might consider creating their own Internet Exchange. Additional background on the story from WSFA and GovTech.

Read the transcript from this show here.

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

This show is 26 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 Kathleen Martin for the music, licensed using Creative Commons. The song is "Player vs. Player."

AT&T Tries to End the Magic of One Touch Make-Ready

On the border of Kentucky and Indiana a fight is brewing as AT&T and Google Fiber have both announced plans to bring Gigabit Internet service to Louisville, Kentucky. Home to over half a million, the city could see major economic development with new ultra high-speed Internet access, but there’s a problem: the utility poles.

AT&T is suing the city over a “one touch make-ready” ordinance. On February 11, 2016, the Louisville Metro Council passed the ordinance in order to facilitate new competitors, i.e. Google Fiber. 

Utility Poles: Key to Aerial Deployment

Make-ready is the shorthand for making a utility pole ready for new attachments. Although it may seem simple, this process is often expensive and time-consuming. To add a new cable, others may have to be shifted in order to meet safety and industry standards. Under the common procedure, this process can take months as each party has to send out an independent crew to move each section of cabling. 

To those of us unfamiliar with the standards of pole attachment it may seem absurd, but this originally made sense. Utility poles have a limited amount of space, and strict codes regulate the placement of each type of cable on the pole. Competitors feel they have to fiercely guard their space on the pole and cannot trust other providers to respect their cables. Make-ready must involve coordination between multiple providers and the utility pole owners. For some firms, like AT&T, this is an opportunity to delay new competition for months.

“One touch make-ready” simplifies the entire process. A single crew only makes one trip to relocate all the cables as necessary to make the utility pole. Under the amended ordinance in Louisville, the company that wants to add a cable to the utility pole can hire a single accredited and certified crew, approved by the pole owner, which will accomplish the work much more quickly and at lower cost. Also, it must pay for needed fixes or any damages to the pole-owner’s equipment and inform the pole-owner of any changes within 30 days. Such “one touch make-ready” policies quicken network deployments by preventing delays inherent in coordinating many different entities.

Why Oppose It? Private Utility Pole vs. Public Right-of-Way

AT&T is suing to stop Louisville from implementing this new policy in an effort to stop the new competition from entering the market. Ostensibly, AT&T argues they filed the suit because they own many of the utility poles (an estimated 25-40%) in Louisville. The company argues that the municipality does not have the authority to regulate the utility poles and that this is an unjust seizure of property. In other communities where this is the case, the new companies that want to use the utility poles must sign a licensing agreement with AT&T. 

AT&T’s argument, however, fails to recognize that local governments are required to manage the public Rights-of-Way (in layman’s terms, that is the land kept for the public interest near a roadway). The utility poles, although privately owned, serve a key function for connecting the public with needed services. That is why those utility poles are permitted on the public Right-Of-Way in the first place. Local governments, moreover, must have the authority to ensure that anything permitted on the public Right-Of-Way, such as utility poles, meet safety and industry standards in the quickest and most efficient way possible. 

Further Resources on “One Touch Make-Ready”

Chris interviews Ted Smith, Chief Innovation Officer for Louisville in Community Broadband Bits Episode 193. Smith describes how “one touch make-ready” is quicker, safer, and more efficient to use the utility poles in the public Rights-of-Way to their full potential for the good of the community.

For more information on the importance of “one touch make-ready,” check out analyses from the Coalition for Local Internet Choice, Next Century Cities, and FTTH Council. For an in-depth analysis of Right-of-Way regulations, listen to Sean Stokes of Baller, Herbst, Stokes & Lide on Community Broadband Bits Podcast Episode 169.

OECD Study on Munis Digs Deep, Discovers Dividends

A recent large-scale cross-national study from the Organisation for Economic Co-operation and Development (OECD) offers strong evidence that municipal broadband networks provide numerous benefits for communities around the world. Among the study’s major findings include evidence that municipal networks contribute to efforts aimed at improving local economic development, stimulating business productivity and innovation, and enhancing people’s quality of life.

The study's analysis of European nations is of special interest to us as European municipal networks are the only international municipal networks in the study that closely resemble U.S. municipal networks. In particular, the findings from the study’s central econometric analysis of Swedish municipal networks have direct implications for our understanding of the impact of municipal networks in the United States.

Findings from Econometric Analysis of Sweden

As the researchers note, extensive municipal broadband development across Sweden has contributed to a remarkably high level of nationwide fiber penetration, putting the country far ahead of the US in global rankings. The researchers report a series of features and benefits of Sweden’s widespread fiber penetration and aggressive municipal broadband efforts, including:

Increased rates of employment (with even greater employment increases in highly urbanized municipalities), increased business creation, and reduced car usage (also greater in the most urban cities) as fiber networks make it easier to telecommute to work and to shop for goods and services online.

Overall Economic Development Benefits: The authors cite a previous socio-economic analysis of the municipally-owned broadband network in Stockholm, Sweden showing that this network has generated about $2.5 billion (U.S. dollars) in economic returns for the city, or three times the initial investment. This includes $1.2 billion through the creation of new jobs, $800 million in new economic activity for the broadband supplier industry, $300 million saved by the City of Stockholm from lower service costs, and $300 million in increased values of public housing properties, along with additional savings.

Benefits from E-services: 80 percent of municipalities in Sweden are able to provide enhanced e-services including home care, nursing services, social services, library services, civil dialogue, and digital security alarms, enabling significant cost savings for goods and services and improved quality of life for Swedish citizens. In particular, users of home medical care reported that digitally facilitated home care give them an increased sense of independence, security, participation, and freedom of choice in their health needs.

Benefits of improved competition: The prices for Internet service over Swedish municipal networks are 23 percent to 38 percent lower than national prices. Further, prices for service over open access networks are also 25 percent lower compared to those municipal networks that have only one ISP.

Policy: Although the Treaty on European Union generally prohibits state aid out of concern that it could stifle competition and discourage private investment, the Treaty does permit state aid for public private partnerships (PPPs). Notably, the Treaty also makes exceptions on its prohibition of state aid for rural areas lagging behind the European Commission’s Digital Agenda 2020 targets which call for universal European access to 30 Megabits per second (Mbps) broadband speeds and 100 Mbps connectivity for at least 50 percent of the population by 2020.

Early Federal Stimulus: A federal bill in the year 2000 allocated $900 million to stimulate nationwide equality of access to information for Swedish citizens. The authors credit this bill with prompting a proliferation of major broadband initiatives in the ensuing years.

The Swedish Model: To be eligible for state aid, the Swedish government requires community networks to be operator-neutral (open access). Thus, most Swedish community networks are open access and 93 percent of the nation’s municipal networks have at least two ISPs offering service.

PPPs: These Swedish municipal networks are generally structured as PPPs in which a municipality or regional group of cities own a carrier-neutral infrastructure (owned by a neutral party that is NOT one of the ISPs). As the authors report, a general consensus exists among Swedish policy makers and market actors that PPPs, in combination with an open access model, serve to effectively “safeguard a competitive market on services and applications for the benefit of consumers and businesses” (p. 51).

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Additional Findings about International Municipal Networks

The study’s strongest and most consistent finding was that municipal broadband networks around the world inject competition into local telecommunications markets. According to the researchers, these enhanced competitive environments generally lead to lowered Internet service prices, increased investment by the private providers in markets with municipal initiatives, and/or increased opportunities for private ISPs to use shared infrastructure over open access networks.

An analysis of the UK offers conclusive evidence that access to fiber networks in businesses leads to increased worker productivity.

The importance of pre-existing public utilities: Community networks tend to have the most success in communities that had pre-existing public utilities for services such as water, energy, or gas before they developed their community networks.

Successful municipal networks require competent personnel, sound organizational structure: Cases of failed municipal networks tend to share a common characteristic: lack of previous organizational and financial stability in those cities. In other words, in the observed cases of some failed municipal networks, the study’s findings suggest that such failure is typically due to pre-existing deficiencies in the organizational structure and personnel in those communities, not because the networks were inherently problematic.

Citizens are willing to contribute resources/expertise to solve local broadband needs: In addition to the country's 190 municipal networks, Sweden also has around 1000 small village fiber networks that are generally operated as co-ops. The authors observed cases in these villages where the citizenry voluntarily contributed their labor or other resources, including machinery, to assist in the construction of municipal broadband networks. Some of the telecommunications companies in Sweden provide tool kits and other services to help villages collaborate to help solve their own fiber access needs.

The study offers a useful overview of municipal broadband issues in each nation studied, providing a glimpse into a variety of relevant public policies, common strategies, and other major developments in the deployment of municipal networks in the respective countries. We encourage you to check out the entire study.

Additional Notes on the Analysis of Swedish Municipal Networks

Importantly, the researchers chose Sweden for their central econometric analysis largely because its high number of municipal fiber networks offers an especially large sample set for analysis purposes. They were also careful to statistically control for potentially confounding variables in their analyses.  For example, they controlled for variables that could otherwise skew the evidence of benefits from municipal networks such as local tax rates, average yearly income per person, population age distribution, and share of foreigners and immigrants. These measures help to ensure that the observed benefits of municipal networks are actually due to the impact of municipal networks and not a product of any other secondary variables. 

Chattanooga's EPB Sparks Local Entrepreneurial Ecosystem

Chattanooga's EPB Fiber Optics continues to stand out as a model for the municipal broadband movement, demonstrating the extraordinary impact that fast, affordable, reliable Internet access can have on economic development efforts. 

Now, a new research report from the Ewing Marion Kauffman Foundation highlights the network’s vital role in kick starting the development of what has become a thriving “entrepreneurial ecosystem” in this city of about 174,000.

Collaboration, Public Private Partnerships

The report, titled "Little Town, Layered Ecosystem: A Case Study of Chattanooga," credits the EPB network as the “spark” for an explosion of economic development since the network's launch in 2010. As the article notes, the EPB estimates that since the launch, Chattanooga has seen an influx of ninety-one new companies with approximately $50 million in venture capital contributions from six firms. 

According to the report, the network has also encouraged an entrepreneurial climate in this city that had a “long history of collaboration and public-private partnerships” even prior to the network launch. The report cites examples of the city's collaborative spirit in several non-profit entities, city officials, local anchor companies and universities, and the city’s recently opened Innovation District.

Yasuyuki Motoyama, director of Research and Policy at the Kauffman Foundation and one of the paper's authors, explains the lessons that other cities might take away from Chattanooga’s example:

"Chattanooga organized and mobilized its assets to orient itself to entrepreneurial initiatives. This demonstrates what a small-size city can do when factions from different sectors focus on a common goal and collaborate to achieve that goal. This case of Chattanooga provides lessons for other cities to leverage their own unique assets and to create equally successful ecosystems."

Pulaski, Tennessee: "A Community Investing In Itself" With Better Connectivity

Pulaski, located in the area Tennesseans describe as the southern middle region of the state, has a fiber network other communities covet. When we contacted Wes Kelley, one of the people instrumental in establishing the network, he told us that the community always wanted to be more than "just Mayberry." Rather than settle for the sleepy, quaint, character of the fictional TV town, local leaders in Pulaski chose to invest in fiber infrastructure for businesses and residents.

A Legacy That Lives On

The county seat of Giles County, Pulaski has a long history of municipal utility service. The electric system was founded in 1891, and is the oldest in the state. The city also provides municipal water, sewer, and natural gas service. The electric utility, Pulaski Electric System (PES), serves most of Giles County, which amounts to approximately 15,000 customers. PES receives power from the Tennessee Valley Authority (TVA) and then distributes it throughout the county.

Pulaski is now known for its Fiber-to-the-Home (FTTH) network, PES Energize, but the city's first adventure in providing municipal Internet access began in 1993. The city developed dial-up service and within five years, 1,500 homes were using the service. The city abandoned the dial-up service to offer Wi-Fi but then sold that system to a private company.

Preparing PES

Leaders in Pulaski had their sights on connectivity beyond the limits of Wi-Fi. In 2002, Mayor Dan Speer and Dan Holcomb, the New CEO of PES, began exploring a publicly owned fiber network. Holcomb had previously lead a Michigan utility that offered cable TV and so used his experience to help establish the PES Energize network. AT&T (BellSouth at the time) provided DSL service and Charter offered cable Internet access but neither company performed to the satisfaction of the community. In fact, Pulaski had always suffered through poor quality service from its incumbents.

When Holcomb arrived, the community engaged a consultant for a feasibility study to examine in detail the idea of a publicly owned fiber network; Holcomb, Speer, and the rest of the city's leadership were not confident about the results. Before the community moved forward, Holcomb felt it was important they carry out a customer survey and a second feasibility study. In the spring of 2003, the organization undertook a survey and used the results to ready the utility to step into its approaching role as a municipal network utility.

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Ready For The Next Step

Two years later, city and utility leadership felt that they were ready and completed a second feasibility study. This time, the results suggested a better outcome if Pulaski decided to invest in a publicly owned fiber network. In the spring of 2005, Pulaski developed a business plan that was approved in March by Tennessee's State Comptroller, as required by state law. In May, the city council voted to issue $8.5 million in General Obligation (GO) bonds to finance FTTH deployment and a data center.

Kelley had worked on a similar project in Hillsdale, Michigan, and even though Holcomb had asked him to work on the Pulaski project, Kelley was reluctant. Hillsdale had not pursued a network and Kelley did not want another disappointment. Once Pulaski's utility board and city council backed the plan, he knew the project had the support to move forward. Kelley accepted a position as Chief Marketing Officer for the utility. (Kelley talks more about his experience in Pulaski, Hillsdale, and his current role in Columbia, Tennessee, in episode 189 of the Community Broadband Bits podcast. Check it out to learn more.)

GO bonds are not one of the three most used types of financing for municipal networks but Kelley explained why they worked well for Pulaski. When a community chooses to fund any project with GO bonds, investors have an added measure of safety because the project and the loan are backed by the full faith and credit of the community. In other words, the issuing jurisdiction can use its taxing authority to pay back the debt, if necessary. As a result, the municipality, county, or other government entity issuing the bonds obtain very low interest rates. GO bonds require that the project developed be owned by the community and funds are typically used for projects that will be used by the entire community.

People Grow The Asset

Construction started in 2006, with fiber following the path of the existing power lines - when the lines were aerial, the fiber was installed on poles and when lines went underground, the new network followed suit. PES took the same approach with street lines and drops to homes. Line construction was completed in September 2006; the utility finished its Network Operations Center in November, and began testing right away. 

PES Energize began offering residential triple-play of cable TV, phone, and high-speed Internet services in January 2007 but its formal launch was not until the spring of 2007. When the network launched, it offered services at download speeds of 5 Megabits per second (Mbps), 10 Mbps, and 20 Mbps. Since then, speeds have increased. High-speed Internet access, video, and telephone are available in a variety of bundles or subscribers can purchase stand-alone Internet access for $35.95 (25 Mbps download / 5 Mbps upload), $75.95 (50 Mbps download / 7 Mbps upload), or $100.00 (100 Mbps download / 10 Mbps upload) per month.

By the time Wes Kelley left for his new position as Executive Director of Columbia Power and Water in 2012, PES Energize had achieved a 45 percent take rate. According to Mike Hollis, in charge of sales for PES Energize, the utility expands the network incrementally every year. By the end of January 2016, the network passed 5,609 homes and businesses. The utility's take rate is just under 49 percent in total with 2,729 of those properties passed subscribing to PES Energize.

According to Hollis, customers in rural areas are speeding up the expansions by footing the bill themselves. In PES' electric service area beyond the current network footprint, residents and business owners have approached the utility to ask for an estimate on the cost of expansion to their neighborhood. PES provides a figure for materials and pole attachment costs. Increasingly, these small pockets of rural neighborhoods, with nothing but dial-up or satellite, will chip in to pay for the construction. The neighborhood group cuts a check and the utility expands the network to that area.

Hollis noted that a local realtor is organizing the most recent example of a would-be subscriber funded expansion. He can't sell houses in his neighborhood where there is no high quality Internet access; homebuyers don't want houses with dial-up or satellite. He and his neighbors see the move as a necessary investment so he is leading the effort to obtain contributions from people in the neighborhood to pay for the fiber expansion.

Businesses In Mind

When PES launched, it also offered dark fiber leasing for organizations that wished to manage their own data needs. Most businesses in Pulaski purchase lit services and/or use the utility's data center. The facility housed a colocation facility, hosting services, and offsite data storage and was designed to withstand an F5 tornado.

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In 2011, Speers, who had transitioned from Mayor to Executive Director of the Pualski-Giles County Economic Development Council, discussed how the network had improved functionality for local businesses in an interview with Craig Settles. Whether a local printer sending artwork to Los Angeles or a graphic artist sending catalogue material to Canada, Pulaski businesses heaved a sigh of relief when they tapped into PES Energize. Businesses today overwhelmingly choose PES Energize - 82 percent of those passed subscribe.

From the interview:

"The golden rule of economic development is, take care of what you got. Take care of your existing industry first. There’s no question they will use it. If you’re lucky enough to get an industry to come in because they need the broadband, then that’s gravy.

During this current economic downturn, we’ve focused a lot of attention on our existing retail base and entrepreneur development. We’re teaching businesses how to maximize their use of the network so they can broaden their customer base nationally through the Internet. Our philosophy is to tie in the use of technology to help the businesses we have."

Looking At The Long Term

Pulaski has not experienced significant population growth since investing in PES Energize, but it has managed to avoid decline, a problem gripping similarly sized communities in the region. Tullahoma is a little over an hour away, Columbia is less than 45 minutes north; both communities offer potential employers municipal fiber connectivity. Pulaski made the investment first and can still compete for economic development opportunities in a peaceful setting.

When new businesses look for a location to open a facility where high-speed connectivity is a must, and search for a "Mayberry" to attract a quality workforce, Pulaski is on the short list because of its municipal fiber network.

Wes Kelley recognizes the long-term value of Pulaski's decision to create Internet network infrastructure. When we spoke with him for this article he reinforced what local officials and their constituents all over tell us - that the people of Pulaski knew the best course for themselves:

"It's a community investing in itself. Pulaski spent $8.5 million. They could have spent $8.5 million building a new rec center and a new pool but they didn't. They decided to put it in the air and in the ground to provide telecommunications infrastructure for the next 40 years. I think that's a powerful decision but it is a local decision…local control is critically important."

Nevada Electric Coop Gets Fiber, Creates Jobs

A growing number of electric coops are providing Internet access to residents and businesses in areas of the country where big providers don't offer services. It’s not a big leap because many electric coops already use fiber for communication between electric substations. Expanding in order to offer high quality Internet access is a logical next step.

In Nevada, the Valley Electric Association (VEA) is bringing Fiber-to-the-Home (FTTH) to members in 2016 and helping create new jobs in Pahrump and Fish Lake Valley. The coop's subsidiary Valley Communications Association (VCA), will operate the network.

Details on speeds and rates are yet to be determined, but the coop plans to offer Internet access up to 1 gigabit.

Community Job Creators

Currently, VEA employs 107 full-time staff and has 31 new job openings; they intend to add a total of 38 positions over the next year. The subsidiary VCA employs 10 full time and contract employees and anticipates adding another 50 employees by the end of 2016.

Municipal networks draw in new businesses and bring new life to communities. For instance, the network in Chanute, Kansas, helped draw in a new manufacturing facility with 150 jobs from Spirit AeroSystems in 2012. And in Thomasville, Georgia, the municipal network revitalized the downtown bringing more than 200 jobs to Main Street. With the addition of high-speed Internet access, this community in Nevada is well positioned for economic development.

From Small Coop to Big Dreams

In 1965, the VEA started off as a small rural coop, but now it has expanded to serve over 45,000 people across 6,800 square-miles of service area. Tom Husted, VEA's CEO, expressed his expectations for the new fiber network: 

“It’s going to add jobs, enhance communications and revolutionize Internet service in our territory.”

Springfield, Massachusetts Introducing Free Downtown Wifi Plus New Dark Fiber Capacity

Starting this spring, the City of Springfield, Massachusetts will offer free municipal Wi-Fi and new dark fiber capacity to a 7-block area of the city’s downtown known as the “Springfield Innovation District.”

As Masslive.com reports, the new dark fiber will create a connection between the city’s Springfield Innovation Center and an existing network of dark fiber capacity in this part of downtown. The publicly owned fiber currently provides gigabit connectivity to municipal buildings but the city will lease out excess capacity. The new Wi-Fi and dark fiber services are part of a broader plan aimed at boosting economic development and innovation in Springfield, the state’s third largest city at 150,000 and the fourth largest city in all of New England. 

The project is phase one of a broader plan to soon expand the network even further in order to reach an additional downtown area and all of the city’s public parks. Springfield’s Chief Information Officer Kevin Kennedy estimates the project’s phase 1 total cost between $50,000 and $100,000. While users interested in connecting to the dark fiber will contract with a private provider for Internet service, the city will be the service provider for the free downtown Wi-Fi.

Preparing for New Tourism, Increased Economic Development, Better Livability

Over the next two years, the city will welcome a new Union Station transportation center and an MGM Casino in the city’s downtown area. With the increased tourism, Kennedy told WAMC Radio that it would be “embarrassing” for Springfield not to have free downtown Wi-Fi.

Delcie Bean, the founder of a Springfield IT company and the creator a downtown-based tech training organization called Tech Foundry, believes the new network capacity is essential to attracting people to work, live, and play in downtown Springfield:

"Connectivity like this is like what electricity was to an earlier age," he said. " It opens up the possibilities for other things to happen because we will have this fundamental base." While pointing at a downtown park near his offices, Bean added, "If we are ever going to activate that park as a public work space, we are going to need to have Wi-Fi. Even food trucks use Wi-Fi these days to process credit cards. There is just so much you can't do without it."

Local coverage:

Not Nuclear Power, but the Power of Connectivity in Vernon, Vermont

Vernon, Vermont, is a little town in search of a boost to the local economy. The Commons reports that residents formed a Fiber Optic Committee in June and now are exploring the possibility of a municipal network.

First an Idea, Now a Plan

In December of 2014, the Vermont Yankee Nuclear Plant in the town began to shutdown. Over the next few years, as the plant ends operations, it will eliminate a total of 400 jobs in a town of 2,200. Vernon is looking for other keys to economic development.

A local resident came up with an idea -- fiber optics. Vernon's Munson Hicks, is now a member of the 5-person Fiber Optic Committee seeking to find a way to make the idea a reality:

“I couldn’t think of anything that would boost the town more quickly and more securely after the loss of VY [Vermont Yankee Nuclear Plant] than creating our own high-speed Internet” 

The committee has spoken with contractors, and consultants in order to develop a realistic idea of the cost. They estimate a price tag of $2 - 3 million for a Fiber-to-the-Home project. They are considering a consortium model - crossing state lines, with neighboring towns Hinsdale, New Hampshire, and Bernardston, Massachusetts.  

What’s Next for Vernon

The Vernon Planning Commission has not endorsed the plan yet; the Fiber Optics Committee still has a long road ahead of it. They have to confirm community support for the plan and find funding through grants or loans.

At the January 19th community forum, Committee members shared their findings with residents and explained the need for grassroots mementum:

“Really, I think we need to look at this as an economic development initiative for Vernon,” [Committee Member Martin] Langeveld said. “Businesses already need this kind of speed or very soon will need this kind of speed, so having that in town will really be a big plus in trying to get more businesses to locate here.”

Rural Broadband Expansion Ignores Economic Development Potential in Minnesota - Community Broadband Bits Podcast 190

For years, many rural communities suffered from a broadband donut hole problem - the investment in better-than-dial-up was in the population center, leaving a donut of poor access around it. Now policy to reverse that in places like Minnesota is perversely creating the opposite problem, to the detriment of the entire community.

This week on the Community Broadband Bits podcast we welcome back Dan Dorman, Executive Director of the Greater Minnesota Partnership. He is also a former legislator and current small business owner in Greater Minnesota.

We discuss how this problem developed and where we see it happening before our very eyes. Though we focus on Minnesota, this issue is broadly applicable to all states. We also talk about how Comcast lobbyists have cynically manipulated the program to prevent economic development or possible competition, despite the fact that Comcast serves practically no one outside of the metro region.

Lisa Gonzalez and I predicted this problem in our paper from 2014, All Hands On Deck: Minnesota Local Government Models for Expanding Fiber Internet Access. Listen to Dan Dorman's last appearance, episode 136.

The transcript from this episode is available 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 can download this Mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Kathleen Martin for the music, licensed using Creative Commons. The song is "Player vs. Player."

Boston Globe: Build A Muni

The Editorial Board from the Boston Globe recently kicked off a series titled "The Cutting Edge of the Common Good." The editors intend to offer suggestions for how to create a prosperous city through ideas to benefit Boston's 4.7 million residents. 

Their first proposal? Build a municipal fiber network.

In the editorial, the Board point out how the city has always been a cutting edge leader, from Revoluntionary War to same-sex marriage. But when it comes to developing the tech sector, the "City on a Hill" is being edged out by Chattanooga, Lafayette, Louisiana, and Cedar Falls, Iowa. High-tech innovators are flocking to communities with municipal fiber networks.

As the Globe notes, connectivity could be better in Boston:

The truth is that our tech infrastructure is in the same dismal shape as our roads and bridges. Boston, like a majority of American cities, pays more for slower Internet service than our international peers. If Boston is to remain a global hub of innovation — and on the “cutting edge of the common good,” as Mayor Martin J. Walsh promised in his State of the City address last month — it should build a citywide fiber-optic network that allows each residence and business an onramp to the information superhighway of the future.

Even though the city has its own conduit network and significant fiber assets, residents and businesses must seek service from large private providers. The Globe Editors believe the city should rethink the current approach:

But the City of Boston should not gamble its future competitiveness in a Mountain View lottery, nor should it entrust such vital infrastructure entirely to private hands.

The private market would be the ideal solution in an ideal world, but in Boston the market has failed.

The Globe points out the economic development, public safety, and community savings benefits that would accompany a municipal fiber network in Boston. They also point out the fact that a publicly owned network is one way to help shrink the digital divide between income levels.

The leaders at the Globe are not naive; they acknowledge that the task is expensive and will be fought, tooth and nail, by the big incumbent players:

Companies that currently provide phone and Internet service would view such a move by a city like Boston as a very serious — if not existential — threat to their bottom line. Telecoms are big employers, and they give heavily to political campaigns. Were such a system proposed, prepare for a deluge of ads smearing the venture as the Big Dig Redux.

But given that there does not appear to be any significant private investment planned by incumbents to upgrade Boston's connectivity, the Globe calls on the city's leadership to take control of the future…or risk stepping back:

And yet, is there anyone in Boston who yearns for a return of the filthy, noisy, elevated Southeast Expressway? The city once wisely buried a highway; now it’s time to bury a superhighway, too.