Tag: "loan"

Posted April 19, 2017 by christopher

As we continue to cover the growing movement of rural electric cooperatives to bring high quality Internet networks to their members, we wanted to bring Alyssa Clemsen-Roberts back on the show. Alyssa was last on the show for episode 109 and has since moved from the Utilities Telecom Council to Pedernales Electric Co-op in Texas.

Though Pedernales is not considering a major broadband investment, Alyssa's insights from her years working with many electric utilities are valuable in understanding what electric co-ops have to consider before making a network investment. 

We start off by discussing the recent legislation in Tennessee that finally allows electric co-ops to offer Internet access before we move on to the real considerations a general manager has to examine before getting into telecom. We also talk quite a bit about the interplay between rural electric co-ops and telecommunications companies.

Read the transcript of the show.

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

This show is 32 minutes long and can be played on this page or via iTunes or 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 Break the Bans for the music. The song is Escape and is licensed under a Creative Commons Attribution (3.0) license.

Posted April 11, 2017 by christopher

Located in southeast Pennsylvania, Lancaster will soon have some of the fastest Internet access in the entire state due to its partnership with a local telecommunications firm, MAW Communications. We reported on many details about this approach here, but Community Broadband Bits podcast episode 248 offers an in-depth look.

Lancaster Business Administrator Patrick Hopkins and MAW Communications Operations Director Brian Kelly joined me to talk about the history of their partnership and the next big step: a citywide gigabit fiber-optic network. 

We also talk about the risks to the public sector from trusting a private company with essential infrastructure and the potential challenges for a private sector company to work with a local government. Both sides are going into this arrangement with their eyes wide open and offer tips for what others should consider before they try to replicate the model. 

If you missed it, last year we released a major paper about considerations in public-private partnerships. We did not discuss LanCity Connect, but many of themes apply.

Read the transcript of the show here.

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

This show is 29 minutes long and can be played 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 Break the Bans for the music. The song is Escape and is licensed under a Creative Commons Attribution (3.0) license.

Posted March 29, 2017 by lgonzalez

West Virginia rural communities struggle with access to broadband but a bill in the state legislature is taking some first steps to encourage better connectivity. HB 3093 passed the House with wide support (97 - 2) and has been sent on to the Senate for review. The bill doesn’t appropriate any funding for Internet infrastructure projects around the state, but adopts some policies that may help local communities obtain better connectivity.

Revenue Neutral And Popular

The state is facing a $500 million budget deficit and lawmakers don't have the appetite to appropriate finds for Internet infrastructure projects. As in most states, policy bills do well during times of financial strife. Elected officials still want to do what they can to encourage better broadband so, according to at least one lawmaker, the revenue neutral nature of the bill has contributed to its success in the legislature. Delegate Roger Henshaw, one of the bill's co-sponsors, told Metro News:

“Notice this is a revenue-neutral bill,” Hanshaw said. “That’s in fact one of the reasons we’re rolling it out now. We have other bills here in both the House and Senate that are not revenue-neutral bills that were on the table for consideration.

“But with the clock ticking on us, it became clear that we probably ought to be looking at options to advance service that didn’t even have the possibility of a financial impact. This bill does not.”

Check out the 3-minute interview with Hanshaw on Soundcloud.

The Broadband Enhancement Council

West Virginia’s Broadband Enhancement Council was created in a previous session and receives more authority and responsibility under HB 3093. They are tasked with the authority to, among other things, gather comparative data between actual and advertised speeds around the state, to advise and provide consultation services to project sponsors, and make the public know about facilities that offer community broadband access. 

HB 3093 briefly addresses the creation of the “Broadband Enhancement Fund," and addresses how the funds should be spent. For now, the fund remains dry... Read more

Posted March 28, 2017 by htrostle

Pennsylvania’s state barriers won’t stop this community from improving Internet service for its municipal facilities, residents, and businesses. The City of Lancaster is collaborating with private provider MAW Communications to ensure the community has next-generation technology. Their public-private partnership, LanCity Connect, will offer affordable 1 gigabit (1,000 Megabits per second) service over a new Fiber-to-the-Home (FTTH) network.

Shared Risk, Public Financing

The Lancaster Online has closely followed the development of the partnership from a 2015 Wi-Fi project between the partners to the current citywide fiber plan. Here's a quick summary of the basic framework of the partnership: 

MAW Communications originally built a $1.7 million fiber backbone starting in 2015 with financing from the city's water fund bond. The city had refinanced its water utility debt, saving some $7.8 million and they worked out an agreement with MAW where the private partner would deploy and own a backbone fiber network. Over the 20 year term of the deal, the city has the right to half the network for city services, including automatic meter reading (AMR) and a traffic control system, with the city being able to renew the deal for four additional terms. Officials have said this arrangement will not impact water rates.

MAW Communications will extend the network to premises, aided by a $1.5 million loan with a 7 percent interest rate from the city's general fund reserves. The provider will repay the loan over a 13 year period. As long as MAW Communications has an outstanding loan to the city, the provider cannot sell the network without the city's written approval. Though the loan will help MAW to begin building the network, the costs of connecting homes and businesses would still be prohibitive at $1,000 each if not for another element of the plan.

The city developed a creative way to spread that $1,000... Read more

Posted February 14, 2017 by christopher

The most rural area of Missouri is getting a Fiber-to-the-Home network from the United Electric Cooperative, which has created United Fiber and is expanding across its footprint and to adjacent areas that want better Internet access. Chief Development Officer Darren Farnan joins us to explain why his co-op has taken these steps.

We discuss how they are rolling it out - focusing on areas that need the service while respecting the telephone cooperatives that are within their electric footprint. The project has benefited from a broadband stimulus award and also incorporates fixed wireless technology in some areas.

We discuss some of the economics behind the project and are sure to clarify that though the utility has needed some capital subisides to build the network, it does not need any operating subsidies to continue - it runs under its own revenue. And we talk about the demand for better, faster connections - it is much higher than most realize.

Read the transcript of the show here.

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

This show is 30 minutes long and can be played 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 Admiral Bob for the music. The song is Turbo Tornado (c) copyright 2016 Licensed under a Creative Commons Attribution (3.0) license. Ft: Blue Wave Theory.

Posted December 22, 2016 by htrostle

About 15 years ago, two small cities in western Oregon faced an all too common predicament for rural areas. The Internet Service Provider (ISP) told they would not see high-speed Internet access until 2020. Taking matters into their own hands, the cities of Independence and Monmouth decided to collaborate on a project to bring the latest technology to their communities. 

Together they built a jointly owned Fiber-to-the-Home (FTTH) network, known as MINET (Monmouth Independence Network). Today, the network supports economic development and agricultural innovations. This piece focuses on only one of the cities, Independence, in order to provide an in-depth look at the community impact of the network.

Affordable & Reliable Internet Service

At the time, FTTH was almost unheard of. Even today, the technology is available to only a quarter of the entire U.S. population. MINET offers affordable, reliable connectivity for the 18,000 residents of both communities. The network has a low-cost option available to everyone of 2 Megabits per second (Mbps) for $10 per month. Other Internet access speeds available are:

Download speed / upload speed
50 Mbps / 25 Mbps for $50
75 Mbps / 40 Mbps for $65
100 Mbps/ 50 Mbps for $80

Residents can also subscribe to triple-play bundles of Internet, voice, and video services.

Took Time to Develop

MINET has faced a difficult financial situation even though the network has brought many benefits and opportunities to the community. 

The League of Oregon cities provided a quick case study of the network in 2011. In the late 1990’s, the two cities developed a feasibility study only looking to connect the governmental buildings and the businesses. After studying the potential for offering services to residents, the cities decided to divide the project into two phases. Phase I: build fiber loops. Phase II: build the last-mile to homes and business and offer retail services. 

By 2004, they had officially formed MINET as an ORS 190 entity (an official Oregon intergovernmental agreement). They also completed Phase I at... Read more

Posted November 23, 2016 by htrostle

This is episode 225 of the Community Broadband Bits. Representatives of Midwest Energy Cooperative discuss their project to bring high-speed connectivity to rural southwest Michigan. Listen to this episode here.

Dave Allen: I really see this as a re-lighting of rural America.

Lisa Gonzalez: This is episode 225 of the Community Broadband Bits podcast, from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. There's a project taking shape in rural southwest Michigan and the nearby regions of Indiana and Ohio. It's headed up by the Midwest Energy Cooperative. At the recent Broadband Communities Economic Development Conference in Minneapolis, Chris ran into Bob Hance, President and CEO of the cooperative, and Dave Allen, the cooperative's Vice President of Regulatory Compliance. Naturally, we wanted to hear more about their project and share the details with you. They provide some history and how access to high quality connectivity has positively impacted a number of their rural members. Chris, Bob, and Dave also have some interesting thoughts on federal funding programs, project standards, and the different rules for cooperatives and big corporate providers. Learn more about the project at teamfiber.com, where you can also discover more about the cooperative. Now you may notice some background noise. We apologize in advance. While we advocate for local choice and access to technology, sometimes technology is just not on our side. We had a little trouble with the mic that day. Also, Chris is suffering from allergies, and until winter sets in, he may sound a little like the late Howard Cosell, but never fear, it is our Christopher. Now, here with Chris are Bob Hance, President and CEO, and Dave Allen, Vice President of Regulatory Compliance for Midwest Energy Cooperative.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell. Today, I'm speaking with two folks from Michigan. Bob Hance, the President and CEO of Midwest Energy Cooperative. Welcome to the show.

Bob Hance: Thank you.

Christopher Mitchell: And Dave Allen, the Vice President of Regulatory Compliance for the Cooperative. Welcome to the show.

Dave... Read more

Posted November 22, 2016 by christopher

Rural electric co-ops have started delivering high quality Internet access to their member-owners and our guest this week on Community Broadband Bits episode 229 is dedicated to helping these co-ops to build fiber-optic networks throughout their territories. Jon Chambers is a partner at Conexon and was previously the head of the FCC's Office of Strategic Planning and Policy Analysis.

Jon is a strong proponent for ensuring rural residents and businesses have at least the same quality Internet access as urban areas. We talk about his experience and frustration at the FCC, which was content to shovel money at telcos for the most basic infrastructure rather than setting higher expectations to ensure everyone had decent Internet access. We talk about how Co-Mo rolled out fiber to its members without federal assistance, inspiring electric cooperatives around the nation to follow suit.

In our discussion, I reference Jon's blog post "FCC to Rural America: Drop Dead." In it, he cites some of the reactions in the FCC from his advocacy for real rural solutions rather than signing big checks to big telcos for delivering slow and unreliable Internet access. One of quotes from a Democrat: "Republicans like corporate welfare, so we’re going to give money to the telephone companies to keep the Republicans on the Hill happy."

Neither political party comes off looking very good when it comes to rural connectivity, which fits with our impression. But Jon confirms another of our experiences when he says that when he works with rural communities, politics doesn't come up. They just focus on solutions.

Read the transcript of the show here.

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

This show is 36 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... Read more

Posted October 25, 2016 by christopher

Telephone and electric cooperatives are making strides in bringing high-quality connectivity to rural areas while national providers stay in the city. This week we speak with two gentlemen from rural southwest Michigan’s Midwest Energy Cooperative: President and CEO Bob Hance and Vice President of Regulatory Compliance Dave Allen.

The electric cooperative has embarked on a project to bring fiber-optic connectivity to its members within its electric distribution grid. The multi-year project will bring better functionality to electric services and high-speed Internet access to areas of the state struggling with yesterday’s technologies. Bob and Dave describe the cooperative’s commitment to it’s members and discuss the deep roots of the cooperative in the region. They also touch on how the project is already improving lives in the areas that are being served.

Bob, Dave, and Chris, also spend some time discussing the difficulties that face rural cooperatives, especially regarding federal funding and its distribution. Serving sparsely populated areas is a challenge. Federal funding is often distributed more favorably to big corporate providers that promise to deliver much slower speeds than cooperatives like Midwest Energy. Co-ops are delivering better services, and building better networks with less federal funding; they also face higher hurdles to obtain that funding.

Why do they do it? Because they are invested in the future of their communities.

Read more about the project at the Midwest Connections Team Fiber website.

Read the transcript of the show here.

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

This show is 28 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 ... Read more

Posted September 22, 2016 by htrostle

Once again we return to Iowa to learn about community networks and high-speed connectivity. Home to municipal networks such as in Cedar Falls, Lenox, and Harlan, Iowa also grows publicly owned networks of a different kind - cooperatives’ networks. The Winnebago Cooperative Telecom Association (WCTA) provides next-generation connectivity to rural areas, and is now upgrading infrastructure in its service area. WCTA uses Fiber-to-the-Home (FTTH) technology to provide Internet access of 100 Megabits per second (Mbps). 

Small Towns and Cities To Get An Upgrade

WCTA is now installing fiber in Forest City, home to about 4,000 people and the county seat of Winnebago County.

WCTA General Manager Mark Thoma told the Globe Gazette’s Forest City Summit newspaper, “We have to work closely with the city. Kudos to the city crew for locating (all the utilities). It’s been going very well.”

WCTA intends to install their fiber underground in Forest City and the municipal utilities department is facilitating the cooperative’s efforts by locating current utilities infrastructure. Collaborating will enable WCTA to bury their fiber without disrupting other services.

This upgrade to fiber will replace the copper lines towns served by WCTA, where members still use DSL. Customers in rural areas received an upgrade to FTTH several years ago. 

Rural Areas First

In 2011, WCTA received $19.6 million American Recovery and Reinvestment (ARRA) award for a fiber broadband project in rural areas throughout its service territory. Half of the money was a grant, and the other half was a loan.

While finishing the fiber builds in these rural areas in 2015, WCTA automatically bumped up the speeds of all rural members. Previous top speeds of 15 Mbps jumped up to 100 Mbps via FTTH but the $65 per month subscription rate stayed the same. WCTA's fiber network speeds are symmetrical, so upload and download speeds are the same.

Cooperatives Have Annual Meetings

The WCTA... Read more

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