consideration

Content tagged with "consideration"

Displaying 211 - 217 of 217

Seattle Will Take Year to Study Community Fiber Network

After Seattle's new Mayor campaigned on a community fiber network and consulted with both Lafayette and Tacoma on how to build it, it will now spend a year considering its options. In discussing the current options for broadband in the city, Governing Magazine notes lack of demand for Comcast's "up to" 50/10 EXTREME package:
The demand for this "Extreme" tier speed, however, is "extremely low," says spokesman Steve Kipp. Later this summer, the ISP plans to offer 105 Mbps download and 12 Mbps upload speeds.
I suspect people mostly aren't interested in the extreme price for supposed extreme speeds. A number of communities that have built their own networks offer faster (and symmetrical) connections for considerably less. However, even there most people opt for lower tiers rather than the fastest speeds. What the article utterly misses is that faster speeds are only one piece of the reason communities build these networks. Yes, next-generation networks offer faster speeds now and have much more capacity for future expansion than cable networks (and DSL is so far behind as to not be comparable). But public ownership is about more than faster speeds. It spurs competition and lowers prices for everyone. It offers accountability, ensuring the network meets the needs of the community now and in the future. It allows public agencies to get faster connections at lower prices (though Seattle already has this through its previous investments in fiber-optics). As Seattle owns City Light, it would have greater abilities to invest in smart-grid and metering applications to make the city more energy efficient. When the community owns the network, it can ensure everyone has access to fast connections (particularly children in low-income neighborhoods where absentee companies may be reluctant to invest). But to get back to the argument about network speeds, there is an argument for FTTH and faster speeds even if people do not demand them right now. Until people have access to robust connections, applications will not be created to take advantage of them.

Opelika Considers Smart Grid Network, Charter and Others Misinform Public

Opelika, Alabama, is home of some 27,000 people and a public power utility called Opelika Power and Light. On Tuesday, Aug 10, the city will hold a special referendum to decide if the community can build a network that will cover telecommunications and smart-grid services. Alabama is one of the states that preempt local authority to build broadband infrastructure, requiring a referendum and imposing limitations on the business plan for community-owned networks that it does not do for privately owned networks. The local newspaper has a Q&A to answer questions about the project. Expected cost is in the neighborhood of $33 million and will be funded with revenue bonds if citizens approve the project. Opelika Power and Light already has a fiber ring that will be used in the project if they move forward (the project could start offering services as early as Fall 2012). From a distance, it appears that details are not yet worked out (and why would they be -- until they have the authority conferred by a successful referendum, they would not complete any agreements), but the private company Knology will likely provide some of the services on the network built by Opelika. Opelika Power and Light The local editorial board endorsed the plan.
“Shall the City of Opelika, Alabama, be authorized to acquire, establish, purchase, construct, maintain, lease and operate a cable television system for the purpose of furnishing cable service to subscribers?” That’s what the ballot will read in Opelika on Aug. 10. 
And the answer: absolutely yes.
Unless, of course, you are a massive company like Charter that already offers services. If you are Charter, you might make absurd claims that cable is somehow more reliable than fiber. The Charter Government Relations Director apparently suffers from what we might call the make-ity-up disease.

Baltimore Ponders Muni Fiber Network

Another community has announced that with or without Google, it is going to build a proper broadband network. Baltimore is the latest to realize they cannot just wait for others to build the network they need.
"We can't sit here and wait for a gift from Google to fall on us from the sky," said Tom Loveland, whom Rawlings-Blake has appointed the city's volunteer Google czar. "This is our future we're talking about here. Those of us involved in the conversation have seen what other cities have already accomplished. These folks managed to get themselves wired without Google. If they can do it, we can do it, too."
Bingo. Apparently, lots of Baltimore folks are interested in the idea. Some 200 people turned out for this discussion and the group has a lively online discussion group as well as a site detail the community support for the project. The Mayor has created a panel to study the manner. They have already turned to ask Mayor Durel of Lafayette, always a good start. Another place panels like this can start is the still-relevant report by a Task Force in St. Paul. According the article in the Sun, an FCC staffer also presented to the group of 200:
At the symposium, John Horrigan, consumer research director at the FCC, said studies have shown that the technological availability of basic broadband service is not the main problem because 95 percent of Americans have the technical means to access it. Rather, nearly a third of Americans are choosing not to use broadband, citing high costs or a lack of digital literacy or computer skills.
These are the sort of statements that infuriate me because they incorporate so many important caveats. 95% of Americans may have access to something faster than dial-up. But probably not given how much the telcos overestimate the reach of their DSL. Though Horrigan notes the high costs, we know very little about what these costs are. If someone could buy a connection only slightly faster than dial-up at a cost of 3x dial-up, they are probably smart to stick with dial-up. It tells us nothing of what they would do with a real choice.

Johnson City Considers Broadband Network to Aid Economic Development

According to the local paper, Johnson City, Tennessee, continues to discuss whether its public power utility should build a FTTH network. As with so many other communities that have only "high speed" cable and DSL options, people are recognizing the importance of broadband on economic development. Local Business leader, Joe Grandy, is the focus of this article:
“Economic development is part of what we’re charged at the Power Board with accomplishing. If the current (broadband) infrastructure is not sufficient to allow economic development to grow this market, something needs to change.” If the private sector either isn’t willing or isn’t able to create adequate infrastructure, Grandy said, “then an entity such as the Power Board may need to.”
Tennessee cities without publicly owned networks may find themselves in an even tougher bind than similar communities elsewhere. With Jackson, Bristol (TN and VA), Chattanooga, Pulaski, and others, businesses do not have to move far for great networks run by the local public power company.
Grandy, though, “doesn’t think there’s any question” that the Johnson City area will reap the whirlwind, economically speaking, if it fails to scale up local broadband capability. He has been involved in the recent search for a CEO to run the metro area’s new Economic Development Council, and a half-dozen candidates who visited early this month made it abundantly clear that broadband capability is as important an issue today as dependable electricity was 80 years ago.
Public power transformed Tennessee. Publicly owned broadband may be necessary to keep it transformed.

Dover, Ohio, Contemplates Publicly Owned Network

Dover, a city of over 12,000 in Eastern Ohio south of Canton, has been considering a publicly owned fiber to the home network for years to complement its water and electric muni utilities. The City Council is mulling the latest proposal, one that shows a lower cost to build (probably due to a combination of technology lowering prices and lower price for labor in a recession).
The summary indicated that total funding costs have decreased from $11,615,791 in December 2008 to $10,663,410 in December 2009. Shaw estimates that operating income would make the system financially feasible after the third year and could enable the city to pay off its debt in 15 years vs. 16 years as had been predicted two years ago.
A press release from Uptown Services, a broadband consulting company provided some history:
They originally hired Uptown in 2004 to complete a broadband feasibility study. The results of that study were promising, but the City chose to wait for the economics to improve as the technology matured and costs came down over time. Uptown completed a refresh of the original study in 2008. The case had improved, but the City wanted to fine tune the cost estimates through the completion of an actual system design prior to making any final decisions on a City wide deployment. Uptown was selected in 2009 through an RFP process from a slate of qualified proposals to complete this design.
Judging from the local site explaining the networks, they really understand the power of publicly owned broadband. The FAQ include this gem:
Remember this critical point: The incumbents look for a profit and answer to their shareholders, while the City of Dover looks for the betterment of the community and answers to its citizens.
They city has Verizon and Comcast as incumbents respectively. I suspect Dover is one the thousands of communities Verizon is trying to dump on Frontier Communications rather than invest in smaller communities. The stumbling block currently appears to be deciding how to finance the proposed network.

Checking in on Seattle

We occasionally look in on Seattle's broadband discussions because they are the largest city in the U.S. in which there is something approaching a serious discussion about a publicly owned community fiber network. They have a mayoral candidate who makes it a high priority and their Chief Technology Officer, Bill Schrier, both gets it and has an excellent staff that understands the benefits of such a network. Glenn Fleishman has just interviewed Bill Schrier about the network and subsequently discussed the public need for broadband in specific neighborhoods due to extreme market failure. I like Glenn's style - he asks difficult questions and pushes for real answers. That said, I still want to push back on one of his statements because I think it instructive:
Government is often criticized for eliminating competition, inefficiently providing private services, and removing the profit motive. However, market failures are often where governments are asked or begged to step in, and, when accomplished correctly, can provide new opportunities for private enterprise.
Glenn is absolutely right both in capturing some of the criticisms leveled at public networks as well as noting that publicly owned broadband tends to occur in the most difficult environments. Contrary to telco rhetoric, local government officials tend not to want to jump into telecommunications efforts unless they see it as vital for the community. They are busy enough and these networks take years of planning, public hearings, and lots of loud attacks from the very companies that refuse to build the needed networks. But look at the first two items that Glenn notes government is accused of: eliminating competition and inefficiently providing services. How is it that it can do both? Governments cannot coerce people into using the network and federal regulations prevent the local government from abusing its authority over the rights-of-way for the public network. Local governments can use untaxable bonds but private companies get depreciation, tax incentives, and can cross-subsidize from the nearby communities where they charge monopoly prices. As for removing the profit motive - this is hardly a criticism. Infrastructure should not be controlled by any entity with a profit motive - it is the foundation of all other markets.

Johnson City, Tennessee, Considers Network

Johnson City, Tennessee, is considering the pros and cons of expanding the fiber network its public electrical utility is installing to connect substations in order to improve grid reliability. They may follow the example of many other Tennessee public utilities that have offered broadband services to residents, creating competition in a sector sorely needing it. They will need to speed the process along if they are going to get any stimulus money - many communities have been considering these options for longer and are ready with plans. When Johnson City first considered connecting the substations, providers opposed it, afraid they would ultimately offer broadband services to residents. These providers said they already had fiber and would be happy to connect the substations at a "fraction of what JCPB [Johnson City Power Board] is about to spend." Undoubtedly, they were comparing the costs of building a public network against the costs of leasing services for one year. Johnson City was smart to rebuff them and pursue owning the fiber - companies like Charter and Comcast don't make a profit by offering fair prices on connectivity (in fact, Charter is still bankrupt despite overcharging for its slow broadband speeds). Communities that own their fiber (regardless of whether they offer retail services to businesses and residents) find that they get better services at lower costs than when leasing connectivity. These cable companies in Tennessee are brutal - they abuse the courts with frivolous lawsuits (that are frequently thrown out at the first opportunity) and invent data to suggest public ownership is a poor choice. Ultimately, Johnson City Power Board will have to choose what makes sense based on the numbers, not on fearmongering from companies that are just trying to protect high profits protected by a lack of competition.