Tag: "promotional"

Posted September 19, 2013 by christopher

Monticello Minnesota may be located 40 miles outside Minneapolis, but it is the center of the planet when it comes to FTTH competition. We have tried and cannot identify another community localed on planet earth with two separate FTTH networks going head to head across the entire community.

We have long written about Monticello, most recently to look at hypocritical criticism of the project (which gives me an opportunity to note a similar dynamic in Lafayette, Louisiana). And we have covered the disappointing news that the network has not produced enough revenue to make full bond payments.

Short explanation for how Monticello came to be unique in having two FTTH networks: Monticello had poor Internet access from Charter and telephone company TDS. Each refused to invest after local businesses and elected officials implored for better networks. Monticello started building its own FTTH network (Monticello FiberNet) and TDS sued to stop the project while suddenly decided to upgrade its slow DSL to fiber. Lawsuit was tossed out and Monticello finished its network.

In most community fiber networks, the DSL provider seems to fade away because it cannot offer the fast speeds of fiber or cable, so the market basically remains a duopoly with the community network replacing the telephone company (which continues to offer cheap, slow DSL to a small number of customers). But in Monticello, Charter and TDS engaged in a price war, which has really hurt the City's ability to generate enough revenue to pay its debt.

Price wars are very hard on new market entrants because they have to amoritze the cost of their investment whereas the incumbents often have already done so. This means incumbents can almost always offer lower prices if they are determined to do so.

In many communities, we have lacked clear evidence of predatory pricing - that is pricing below the actual cost of service to run competitors out of business. This would violate federal law (if any agency bothered to enforce it)....

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Posted December 6, 2011 by christopher

Communities with grassroots movements investigating or encouraging community networks should take a look at the many resources the citizens of Lafayette, Louisiana, developed in their referendum fight in establishing LUS Fiber.

In order to help educate the community, fiber supporters created a short newsletter (if there was more than one issue, I have not been able to locate it) with articles focusing on how the proposed publicly owned fiber-to-the-home network would create benefits in economic development, health care, and education. The newsletter is has a professional layout and comes complete with a glossary.

Fiber for the Future Newsletter

The newsletter also has a word from the Mayor (the inimitable Joey Durel) and quotes the Greater Lafayette Chamber of Commerce Broadband Policy. Finally, it also explains why the Lafayette Utilities System should build the network and cites successes from BVU in Bristol, Virginia.

Groups that are looking for strategies or a template for a web presence should check out Lafayette Coming Together. This was the organizing site they used in building support for the network, as a complement to Lafayette Pro Fiber. Unfortunately, the Fiber Film Festival web page no longer exists, but the most popular video (Slick Sam Slade) is still around - and embedded below.

An old episode examining the arguments around the network is still viewable (for Windows users) via the Louisiana Public Broadcasting archives -- look for episode #2844.

Posted August 6, 2009 by christopher

As promised a few weeks ago, Ellen Perlman has written a piece on the story behind the Lafayette, Louisiana publicly owned FTTH network. This might just be the best network available in the U.S. in terms of offering the fastest speeds at the more affordable prices and offering the most benefit to the community. The path was certainly not easy nor quick but they are now offering services. The video below is a good example of how communities can respond to incumbents that prefer to advertise and lie rather than invest in networks. Fortunately the folks down in Louisiana didn't take Slick Sam lying down - they confronted him and are building a modern network to ensure Lafayette can flourish in the future. They no longer have to beg absentee-run networks for upgrades.

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