Tag: "consideration"

Posted January 27, 2014 by Lisa Gonzalez

The Sun Prairie City Council met on January 14th to discuss a possible investment in a municipal fiber network. Thank you to local resident Jonathan Kleinow for alerting us to developments in the south central Wisconsin town.

The Star published an article about the meeting in which The Motive Group presented information to the Committee of the Whole. According to the story, the consulting firm has been working with Sun Prairie Utilities for a year to find ways to improve local connectivity and spur economic development with fiber. The community is considering the possibilities of a triple-play FTTH network for the areas 30,000 residents.

Sun Prairie Utilities solicited responses to a community survey. They received 700 responses with 88% in favor of a fiber investment. 

From the article:

The recommended plan put for[th] by The Motive Group has a total cost of near $27 million, with $21 million of that as year-one capital expenditures to serve roughly 13,550 homes and businesses in the city.

Budgeted in the initial year's expense total is $11 million for aerial and underground construction and equipment.

Once the fiber system is operational and available for customers, [The Motive Group's Beth] Ringley said projections show $9.97 million in annual operating revenue by year 20 of the system to go along with expenses of $1.26 million.

By year 20, total assets are projected to be at $27.16 million, with total cash at $12.56 million.

Councilman Jon Freund commented that he was opposed to the idea at first but that he now believes Sun Prairie Utilities and the City could partner to distinguish the community. From the article:

“Technology has become a greater and greater need for both businesses and residents,” Freund continued. “This is an opportunity for us to basically differentiate Sun Prairie from all the other communities in Dane County.”

...

He added that fiber installation would “put Sun Prairie on the leading edge” for...

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Posted January 13, 2014 by Lisa Gonzalez

In Springfield, Ohio, community leaders are looking for ways to use their share of a commercially owned fiber optic loop on the eastern side of town. The community hopes to secure a $50,000 Local Innovation Fund grant from the state to finance a feasibility study reports the News-Sun.

Approximately 60,000 people live in Springfield, located 45 miles west of Columbus. Advanced Virtual Engine Test Cell, Inc. (AVETEC) owns and operates a 19-mile fiber optic ring connecting downtown to its facility. The fiber route passes the Clark State Community College and at least one public school. Springfield owns 24 unused strands of the AVETEC network and wants to build off that asset to save public dollars, improve school connectivity, and encourage economic development.

From the News-Sun article:

“From an economic development standpoint, it’s definitely capitalizing on an amenity that’s already in the ground that we can use then to leverage as an additional incentive or perk to doing business in Springfield, especially business that’s proximal to that fiber in the near-term,” said Josh Rauch, the city’s deputy economic development administrator. “Then as it builds out, you get more and more connectivity throughout the city.”

“The goal is to take the fiber build-out we’ve got and look at other places you could build fiber,” Rauch said.

The Miami Valley Educational Computer Association (MVECA) is a regional nonprofit consortium of twenty-five local K-12 school districts. MVECA leases and maintains a fiber network for the Springfield City School District and other Clark County school districts. The Executive Director of MVECA, anticipating the need for 10 gigabit connections, hopes to see a collaboration with the City to bring the fiber to Springfield and area schools. He believes working together will reduce costs for local school districts and MVECA.

“With the continuously increasing technology demands that schools are placing on our network, finding more affordable ways and long-term solutions for really robust network...

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Posted December 12, 2013 by Lisa Gonzalez

Chanute's City Commission voted on November 25th to move forward with plans for a FTTH network. The community of approximately 9,000 began installing fiber in 1984 for electric utility purposes. They have slowly expanded the network throughout the community. Chanute's fiber and wireless broadband utility now serves government, education, and several businesses. We documented their story in our case study, Chanute’s Gig: One Rural Kansas Community’s Tradition of Innovation Led to a Gigabit and Ubiquitous Wireless Coverage.

Beth Ringley from The Motive Group presented its feasibility study to the City Commission at the meeting. The proposal includes smart grid technology to support Automated Metering Infrastructure for the municipal electric, natural gas, and water utilities and enhanced triple-play service offerings. City leaders hope to eventually support multiple providers via the infrastructure.

The Motive Group predicts a 35% take rate with 5,000 premises passed. The estimated cost will be $19.5 million; revenue bonds would finance the deployment. Business models predict a positive cash flow after six years with capital costs paid off in approximately 20 years.

The City Commission voted unanimously to allow the City Manager to move forward by investigating financial options for the project and make recommendations for Commission approval. The City Manager will also proceed with negotiations with vendors needed to construct and manage the project. 

The City Commission meeting is available online. Discussion about the proposal begins approximately one hour into the meeting. You can also view slides of The Motive Group Presentation in the meeting documents.

Posted December 9, 2013 by Lisa Gonzalez

Ellensburg, located in central Washington, is considering the pros and cons of a municipal fiber network. A big pro for the community of 18,000 is the ability to predict costs rather than depend on Charter Communications. Charter wants to begin charging $10,300 per month for municipal connectivity it previously supplied at no cost in return for access to the public rights-of-way.

The Ellensburg Daily Record recently reported that the City Council unanimously passed the first reading of an ordinance that will allow the city to establish a telecommunications utility. The city began using Charter's fiber optic network in 1997 as part of the city's franchise agreement. Educational institutions, public safety, and the county public utilities district also use the network. Ellensburg owns and operates its own electric and natural gas utilities. Energy Services Director Larry Dunbar was quoted:

“It’s clearly in the city’s best interest to just build it on its own and own it, compared to leasing it,” he said.

The community needs approximately 15 miles of fiber optic network to replace Charter's institutional network. The two parties are still negotiating and may still reach an agreement for a new contract although the article reports:

In June, Council directed the city to solicit vendor proposals for building a city network, and Dunbar said the city is close to granting the contract.

He declined to share a total cost because contract negotiations are ongoing, but said it makes more sense for the city to build the network now rather than pay in perpetuity, he said.

“A telecommunications network is like a 35-year endeavor,” he said. “If we would have done a lease, we could have bought two or three networks over 35 years.”

Local median KIMA TV recently covered the story:

We would go further and note the many more advantages of owning rather than leasing. When the city owns the fiber network, it can expand it to connect...

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Posted December 6, 2013 by Lisa Gonzalez

The City Council of Columbia is moving forward with efforts to improve connectivity in the town of 113,000. In November, elected officials hired a consultant to analyze the community's current infrastructure and develop a broadband plan.

According to a Tribune article, the initiative will be a collaborative effort between the City, Boone County, and the University of Missouri. Columbia hired Magellan Advisors who responded to a May Request for Proposals. A representative from Columbia Water and Light, Connie Kacprowicz, estimated a four month turn around on report. From the article:

Currently, Magellan Advisors is in the needs assessment stage of the process, Kacprowicz said, and that involves talking to different companies in town to gather information about their experiences with broadband services and suggestions for improvement.

"A lot of it is finding out what kind of resources we already have in town and what can be done with them," she said.

Image courtesy of Wikimedia Commons under Creative Commons License.

Posted November 15, 2013 by Lisa Gonzalez

The City of Los Angeles has announced a confusing intention to release an RFP for a vendor to install a gigabit fiber network. A recent Government Technology article touches on the broad plan to build a massive fiber and wireless network to every public and private premise. 

GovTech spoke with Steve Reneker, general manager of the Los Angeles Information Technology Agency. We last spoke with Reneker in Episode #11 of the Community Broadband Bits podcast. In that interview, he described how Riverside, California, used the publicly owned network to revitalize the economy and support the community's digital inclusion plan. Los Angeles wants to emmulate Riverside's success. From the GovTech article:

“[The plan] is really focused on fixing the operational issues that due to the economy have been left by the wayside over the last three and four years,” Reneker said. “So, correcting the lack of investment, the lack of technology refresh, the reduction in staff that make operational aspects of our infrastructure difficult to keep going forward, tries to deliver an incremental approach to starting a long, lengthy rebuilding process.”

Councilman Bob Blumenthal introduced a proposal in August, 2013 to also blanket the city in free Wi-fi. Blumenfield's website states the city has 3,500 existing wireless hotspots.

Engadget reports that the City Council unanimously approved the proposal to move forward with the plan at a November 5th meeting. A Request for Proposals will be issued in the coming months for the fiber and free wireless network:

It's expected that the fiber will also supply residents with free internet access at speeds between 2Mbps and 5Mbps, with paid plans scaling up to a gigabit. Naturally, the city expects the effort will bring free or affordable WiFi to kids who've scored iPads through the school district. The entire scheme is expected to cost $3 billion to $5 billion, but the outfit that builds the network will have to foot the...

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Posted November 4, 2013 by Lisa Gonzalez

The Iowa community of 4,000 will take up Public Measure D on November 5th. Voters will decided whether to approve a $3.5 million bond issue to cover approximately half the cost to build a FTTH system. Incumbent Mediacom is distributing flyers throughout the community urging a "no" vote. Community leaders are doing their best to combat Mediacom's propaganda by educating the voters.

We reported about the community's 1998 vote to establish a municipal cable communications or television system. The city did not act on the vote at the time because the project was cost prohibitive. The estimated cost of the project is now about $3 million less than it was in the late 1990s. Emmetsburg wants to seize the opportunity by joining The Community Agency (TCA), a coalition of municipalities in the region that collectively own a hybrid fiber coaxial cable network. Emmetsburg would join with a full fiber network.

The town currently provides natural gas, water and wastewater services through its municipal utility.

In a flyer [pdf] aimed at convincing locals to vote no, Mediacom brags that "Customers in Emmetsburg get the same services as those in larger cities..." Unfortunately, Mediacom's service in larger cities is also awful and more suited to the late 1990's than the modern digital economy. Consumer Reports has rated Mediacom among the absolute worst Internet providers in the United States.

Public Question D reads:

"Shall the City of Emmetsburg, Iowa issue its notes in an amount not to exceed $3,500,000 for the purpose of paying costs of constructing and equipping all or part of the Emmetsburg Municipal Communications Utility, including the acquisition, construction and installation of a fiber to the premise broadband communications system and related equipment and distribution facilities, and including all or a portion of the costs associated with connecting the Emmetsburg Municipal Communications Utility fiber system with the system of the Community Cable Television Agency of O'Brien County a cooperative undertaking among the cities of Hartley, Paullina...

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Posted October 31, 2013 by Lisa Gonzalez

Approximately 60,000 people live on Aquidneck Island in the towns of Portsmouth, Newport, and Middletown. The Ocean State Higher Education Economic Development and Administrative Network (OSHEAN) travels to the island but community leaders want to find a way to provide services to more residents, businesses, and institutions. OSHEAN is an under utilized middle mile network and most on the island still receive single digit Mbps service.

The Aquidneck Broadband Advisory Board hopes an investment in a last mile network will spur economic development, expand the use of OSHEAN, and increase telecommuting possibilities on the island. The group includes members from each of the three municipalities, local business leaders, and citizens. A recently released Request for Information seeks input regarding a potential gigabit last mile network that can support data, video, and voice. According to the RFI:

This effort will result in the development of a master plan for improving broadband infrastructure island‐ wide, including finance options, grants, and policies for the installation of high speed fiber optic broadband.

The Board will accept responses until November 15, 2013. A PDF of the RFI is posted on the Newport website.

Posted October 8, 2013 by Christopher Mitchell

In a reminder of just how poor telecommunications can be in this country, Franklin County in rural northwest Alabama has formed a Task Force to investigate how it can get something better than dialup.

“The Internet has become an important as having electricity and water,” said Cole, an extension agent in Franklin County. “For our businesses to attract customers and to attract other businesses to come in here, we have to have broadband Internet access.”

But it turns out that they don't even have access to modern telephones in some instances:

Some Franklin County residents have access to dial-up Internet, which is slower than broadband high-speed Internet service. However, some Franklin residents still have a “party line” for phone service.

Who has refused to invest in these exchanges? AT&T is the major provider in the area (followed by CenturyLink) and it came to a Task Force meeting to talk about what "needs to be done to bring high-speed Internet to the county."

Unfortunately the report doesn't note what the ideas were but we would be surprised to learn it doesn't involve some form of federal or local subsidy to get AT&T to invest in this area. There is not much profit to be made, so AT&T is more likely to push these people into expensive 4G LTE wireless solutions than anything that would compete with modern connections.

This is not the first such meeting - as noted by a previous article:

Commission Chairman Barry Moore said meetings were previously held to discuss the lack of high-speed Internet, but nothing materialized.

When it comes to local governments solving their problems by investing in themselves, AT&T falls over itself to stop them - even if it means an area will remain unserved.

We read of a conservative Republican holding out hope for federal grants to subsidize such a project.

In addition, Kreg Kennedy, a district field representative for U.S. Rep Robert Aderholt, R-Haleyville, discussed the possibility of federal grants to help get the project underway.

It is a fascinating situation when AT&T angling for taxpayer money from the federal...

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Posted September 25, 2013 by Christopher Mitchell

Yet another Minnesota town is fed up with slow, unreliable Internet access and is examining what it can do to make sure it has the network it needs to succeed in the modern economy. Annandale is 50 miles northwest of Minneapolis with a population of 3,200 and has Windstream as the telephone company.

Windstream, as with other large firms that primarily serve rural America, offers a DSL more suited to the late 1990's than 2013. It has little capacity to invest in better networks, even if it had the willingness. We've covered Windstream several times in previous stories.

After a flood of complaints from residents to City Hall about slow speeds and frequent outages, the City issued a request for proposals for a feasibility study that will explore alternatives to the present reliance on Windstream.

Local leaders understand that the private sector is not likely to invest significantly in its community due to its density and rural location. But the town needs modern Internet access to retain and attract good jobs. The Annandale Advocate newspaper ran a story on September 17 but it is not available for non-subscribers.

At a chamber of commerce meeting later in the week Gunnarson added that strong broadband is a basic, essential feature of modern commerce.

"New businesses expect good Internet. When you buy a car you expect tires on it. Unfortunately, our car has wooden tires," he said.

logo-annandale-advocate.jpg

The same paper published a guest editorial by City Council members to explain how little power the City has over private providers. Many people falsely believe that towns are actively keeping competition out:

We even had some people angrily ask our staff why are we keeping the competition out. So to set the record straight, the city can't do much about it because it is all private wires, equipment, operations and corporate customer service.

Also, a recent call to the PUC, the Public Utilities Commission, confirms that not much can be done since broadband is not regulated. Sorry folks. As far as letting in competition, we have zero say in that. Any other provider can come in any time. In fact, many of us citizens would throw the...

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