Tag: "consideration"

Posted July 23, 2012 by Lisa Gonzalez

Bonners Ferry, with around 2,500 residents in Northern Idaho, realized three years ago that fiber would only find their community if they installed it themselves.

“We are a little isolated up here…We don’t have the density that would attract this kind of thing.”

Mike Sloan, Bonners Ferry Economic Development Council Director, went on to describe the situation in a recent Bonners Ferry Herald article. Even though some BTOP and BIP federal stimulus project awards came to Idaho, none of them made it to Bonners Ferry. Nevertheless, Sloan and other community leaders knew the infrastructure would be crucial to the economic well-being of the region. The project has been in the works for the past three years. Sloan went on to tell reporter Cori Flowers:

Sloan said fiber optic isn’t just a means for easier internet surfing, it’s absolutely essential to economic progress. “Any area that doesn’t have this is at a distinct disadvantage,” Sloan said. “If we ever want to attract businesses to our area, we need this.”

In order to fund the build-out, Bonners Ferry plans to create a revenue bond, with anticipated revenue from the network designated to repay the bond. With the participation of several other area regional communities, leaders are optimistic. The network will travel along electrical lines and will end at the Canadian border.

The project, still in its planning phase, will be reviewed by the Panhandle Area Council, the City of Bonners Ferry, and municipal legal counsel before moving forward.

Posted June 27, 2012 by Lisa Gonzalez

Tahlequah, Oklahoma, far on the eastern side of the state, recently decided to investigate the possibility of building a new network. On June 15th, the Tahlequah Public Works Authority Board approved the financing of a feasibility study on the options. According to Rob W. Anderson's Tahlequah Daily Press article:

“We budgeted $40,000 for this, and I really think it’ll probably take every bit of that, I’m guessing,” [TPWA General Manager Mark Chesney] said. “What we’re suggesting is that we go to some expert to get a proposal to tell us what a return on investment would look like, what our start-up cost would look like, how much of the market we could capture and a pretty good forecast of how long it would take to pay out on those kinds of things. That’s what a study would do.”

Chesney stated that the city wanted to know more about offering services with a fiber network, including Internet, cable, and voice. Chesney alluded to local dissatisfaction of services and the town's desire to expand economic development. The town is home to approximately 15,750 people.

We have reported on other Oklahoma communities, including Sallisaw and Ponca City, that now have publicly owned networks and provide a variety of services. Oklahoma, one of the states with a more friendly attitude toward community networks, does not have barriers in place to curtail development.

Sallisaw's DiamondNet offers triple play packages, like those mentioned in the Tahlequah meeting, for $105.95, $116.95, and 126.95. Things have worked out will in Sallisaw. Keith Skelton, assistant city director of Sallisaw, stated publicly in March that he expects the City to make a profit from the network by the end of 2012.

Ponca City offers free Wi-Fi to all its residents and now serves 11,000 clients...

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Posted June 21, 2012 by Lisa Gonzalez

Farmington, New Mexico, currently has 80 miles of fiber and has decided to consider the best way to get the most out of the investment. The City uses the fiber network strictly for its Farmington Electric Utility System but sees potential in maximizing the power of the unused strands. Earlier this year, they commissioned a study from Elert & Associates to investigate the technical possibilities. Front Range Consulting reviewed the financial pros and cons.

In February, both experts provided options to the City Council. While offering triple play services is a possibility, both firms recommended leasing available fiber to existing ISPs instead. Expanding to a triple play offering would require  a $100 million investment to connect the 32,000 current Farmington Electric Utility System's customers.

Dick Treich, from Front Range Consulting, commented on the pushback to expect from Comcast and CenturyLink, if the City decided to pursue triple play retail services. From a February Farmington Daily Times article (this article is archived and available for purchase):

"They won't sit still for that," Treich said. "First they will challenge the legality of whether you can get into that option, possibly tying you down in court for a long time. They will also start the whole argument of public money being used for starting a private business. It would be a two-pronged attack."

The City Council also pondered the option of leasing fiber, which would require a $1.5 million infrastructure investment. Also from the article:

"Five companies have expressed interest," said Assistant City Manager Bob Campbell. "Assuming that those companies would each use approximately 10 miles of fiber, (they) would provide $170,000 annually leasing dark fiber."

Update:

Bob Campbell, Acting Director of the General Services Department of Farmington, emailed us this update:

"...after the February meeting Council requested a study for the leasing of bandwidth, that report was presented to Council in May. Now staff will be making a presentation to Council in July asking Council to adopt a policy for the leasing of dark fiber....

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Posted April 12, 2012 by Lisa Gonzalez

Leverett, Massachusetts, is one step closer to a community owned FTTH network. The town of 2,000 will have weekly public information meetings until the Annual Town Meeting scheduled for April 28, 2012. If the required $3.6 million funding is approved at the meeting, the city will issue a Request For Proposals to build the network.

The 1 gig network is slated to be an aerial build, except where existing utilities are underground, in which instances, fiber cable will also be placed underground. Leverett plans to use a $40,0000 planning grant, obtained from the Massachusetts Broadband Institute, to hire G4S Technology to design the last mile fiber-optic network to connect to MBI's stimulus-funded middle mile. The middle mile project is scheduled to be completed in June, 2013, and Leverett plans to be ready to connect soon after. The goal is to have every home connected with fiber by 2014.

Whereas most communities explicitly choose not to use tax revenue to pay for a community network, Leverett's present plan is for a slight increase in local taxes to assist in the financing. The town will borrow the amount necessary to build the network and pay it back over 20 years using a combination of tax revenue and revenues from the new broadband service. Peter d'Errico, Chair of the MBI Grant Broadband Committee observes that homeowners' net spending figures will decline once the system is in place. From the article:

A town survey concluded a municipal network could offer better Internet and phone service at far cheaper rates than private providers, he said.

"It will be a little more on their tax bill and a lot less on their Internet bill, so overall they will be pay less," d'Errico said.

Leverett Map

According to the Broadband Committee, approximately 37% of households in Leverett use slow, sketchy satellite, 23% use dial-up, 20% are on DSL, 14% use wireless, and 6% of households have no internet access. Some households, although theoretically accessible via satellite, never get a connection because of trees and the picturesque,...

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Posted January 27, 2012 by Christopher Mitchell

A rural Fiber-to-the-Farm project that started in Sibley County has added three new towns to its potential territory due to the extremely high interest in fast, affordable, and reliable connections to the Internet. The current providers aren't getting the job done and few expect that to change given the cost of improving services.

An article last year reported on present difficulties for many in Sibley:

Soeffker, who farms with her husband in rural Sibley County, said the dish receiver they must use works fine in good weather but balks during heavy rain and snowstorms.

Meantime, her husband struggles with a lagging Internet speed of .6 megabits a second that falls short of meeting his business needs when he’s selling commodities.

The committee organizing the network set a goal for demonstrating the interest of something like 50% of the population in the target area. There has been some confusion as to exactly how many they should have before committing to the project but with just two mass mailings, they have received nearly 3,000 positive responses (of the over 8000 households that could be served). This is a very strong response.

To keep the public informed, they have had numerous public meetings in each of the communities that will be involved. To be as open as possible, they would often have three meetings in a town per day -- a morning, afternoon, and evening meeting to accomodate everyone's schedule. As this project moves forward, no one can claim the group has been anything but open with the plan.

On January 19, they had a major meeting with over 100 people attending, including many elected officials from the towns. For over two and a half hours, they had five presentations and numerous questions. MPR's Jennifer Vogel was there and wrote about the project shortly afterward.

Participating communities--which include Renville County, Sibley County, Fairfax, Gibbon, Winthrop, Gaylord, Arlington, New Auburn, Green Isle, Buffalo Lake, Steward, Brownton and Lafayette--have been asked to decide by early March whether to...

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Posted December 14, 2011 by Christopher Mitchell

One month after the Johnson City Power Board (Tennessee) approved a fiber-optic network, they have issued a request for qualifications to identify potential partners that would provide broadband services over the publicly owned fiber-optic backbone.

Johnson City lies between Chattanooga and Bristol (Virginia), two communities with advanced next-generation networks that have created significant economic development.

According to a feasibility study by the utility, the third-party vendor approach would give the JCPB the best return on investment, balancing low risk with possible profits. The Power Board would provide the “backbone,” while the vendor, working under JCPB’s brand, would provide the “last mile” services and equipment to the commercial customers. The utility’s telecommunications division would be self-sustaining, and have absolutely no effect on electric rates.

This seems similar to the approach of Lafayette, Louisiana almost 10 years ago. Lafayette eventually decided to build out the network to residents and all businesses when the ISPs using its network were not able to use the backbone to expand to serve everyone (the economics of building last mile fiber-to-the-home connections rarely coincide with private sector goals of maximizing short term returns).

Judging from their projections, Johnson City does not need to hit particularly ambitious targets:

To reach its revenue and return on investment projections, the JCPB would need to capture about 20 percent of the area’s total market for data services, about 15 percent of the market in phone services, and about 5 percent of private data services over five years, based on a market of 3,000 commercial users.

However, even those modest goals will be difficult unless they find a good, trusted partner. Most public power utilities have the trust of residents or businesses -- that trust may not extend to whoever they work with.

Posted November 3, 2011 by Christopher Mitchell

Two years ago, we first wrote about the Johnson City Power Board considering using its fiber-optic network to encourage economic development and create more broadband competition. Last year, we again saw them examining their options, with a recognition that DSL and cable are not enough for economic development when Chattanooga and Bristol are so close by, as well as other publicly owned FTTH networks.

The JCPB has decided to move forward with a public-private partnership approach that will focus first on serving commercial clients and may later expand to offering residential services.

The decision on the third-party vendor approach stems from a feasibility study by Kersey Consulting, a firm that offers broadband consulting to municipalities and public utilities. The study began in July, and examined three models the JCPB could use to offer the services: having the JCPB be the retailer; leasing the extra fiber capacity to another company; or bringing in a third-party operator to provide the network access electronics, customer support, billing services, etc.

Working with a third-party vendor gives the JCPB the best return on its investment, balancing low risk with possible profits, said JCPB spokesman Robert White. The Power Board would provide the “backbone,” while the vendor, working under JCPB’s brand, would provide the “last mile” services and equipment to the commercial customers.

This approach could be somewhat similiar to the Opelika, Alabama, partnership with Knology, except Knology is clearly going after both residential and commercial customers right away.

The article uses these numbers, but they don't seem to make a lot of sense to me on first glance:

Initially, according to the feasibility study, the Power Board would most likely make a capital investment of $1.5 million over five years, which could include installing more of a fiber backbone to reach businesses if needed. On the flip side, revenues from the extra service could reach $1.3 million over 10 years, depending on...

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Posted September 6, 2011 by Christopher Mitchell

Minnesota, land of 10,000 lakes, may soon also be the land of Countywide rural FTTH. Yet another County is doing a feasibility study to figure out how it can bring fast, affordable, and reliable broadband access to all of its citizens.

Redwood County’s Economic Development Authority (EDA) opted to move forward with a broadband feasibility study that would determine just what the county would need to do in order to get fiber to every premises.

The study, which is being conducted by the Blandin Foundation through what is known as the Robust Broad-band Networks Feasibility Grant Program.

The grant, which includes up to $40,000 for the county as it addresses the needs of every community and farm site from one end of the county to the other, requires matching funds, which are available through the county EDA.

Redwood County

Redwood County is in an interesting area, just north of the Windom area muni FTTH networks and west of the proposed project in Sibley and Renville counties. This study comes not long after Todd County started a feasibility study as well (the the latest on that). And though we haven't discussed it much on MuniNetworks.org, Lac qui Parle County to the northwest is working with a rural telephone cooperative to bring FTTH to many in their border as well.

And then beyond them, we have Cook County going FTTH with their electric coop and Lake County going its own way, both with the assistance of the broadband stimulus awards.

Minnesota could very well become the state with the most impressive rural connections. Unfortunately, thus far we have seen no assistance from the state in this matter, but perhaps the Dayton Administration will chart a new course. He has decided to appoint a new...

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Posted August 12, 2011 by Christopher Mitchell

The TonkaConnect project of the Lake Minnetonka Cable Commission, comprising many suburbs west of Minneapolis, is going to pause after some of the city councilmembers of communities within the project were unsupportive.

“I think [the LMCC executive committee] realized that if a municipal fiber network is ever going to be built, the cities need a considerable amount of time spent in educating and understanding the significance of building such a system,” said a memo from Sally Koenecke, LMCC executive director.

The $81 million proposal sought to provide 25,000 households in communities from the 17 member cities with Internet, phone and cable fiber optic services.

I have occasionally offered technical advice to this ambitious project and have watched as Mediacom and other incumbent providers spread rumors and lies to disrupt it. These companies will stop at nothing to preserve the limited competition they rely upon to maintain their market power.

“I’m personally against spending any money on the fiber optic project,” said Orono mayor Lili McMillan. “What I want to do is send a message. I don’t feel government should be in this.”

To be clear, if Lili McMillan doesn't want the government to build a next-generation network, they will have to continue relying on Mediacom cable and slow, unreliable DSL services. Their choice. Their incumbents do not have the capacity or interest to build a next-generation network themselves but they do have the capacity and interest to prevent any other party from doing so.

As Ann Treacy notes at Blandin on Broadband, this is not necessarily the end of the line and may actually serve to increase the desire of people in those communities to take action:

Unfortunately I think that having interest if the price is low enough might not be enough to motivate a community through the perils of community supported fiber. But I always remember the folks in Monticello saying that each set back in winning over the residents just made them stronger in the end. They were talking about the super majority...

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Posted August 3, 2011 by Christopher Mitchell

Chino Hills, California, knows what is like to need broadband - back in 2004 they had to poke and prod Verizon and Adelphia into offering broadband services in their town. Some of the folks from that effort are interested in exploring the idea of a community-owned broadband network.

Time Warner is an $18 Billion dollar company with $1.3 Billion in profits in 2010. Verizon did $106 Billion with $2.5 Billion dollars in profits in 2010. They're not worried about Chino Hills. In fact both of these companies are actively lobbying states around the country to prevent local municipalities from entering the broadband market. I'd like to see our city enter this business and give these national companies a run for their money.

Our video (included below) comparing community fiber networks to services from big incumbent providers has some there thinking that they should consider building their own network to prepare for the near future when much higher capacity networks will be needed to take advantage of all the applications moving to the cloud.

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