Tag: "loan"

Posted April 27, 2018 by lgonzalez

Nestled along the south eastern border of Maine are Baileyville and Calais. As rural communities situated next to Canada in the state's "Downeast" region, neither town is on a list of infrastructure upgrades from incumbents. With an aging population, a need to consider their economic future, and no hope of help from big national ISPs, Baileyville and Calais are joining forces and developing their own publicly owned broadband utility.

Baileyville and Calais

There are about 3,000 residents in Calais (pronounced "Kal-iss") and 1,500 in Baileyville, but according to Julie Jordan, Director of Downeast Economic Development Corporation (DEDC), many of those residents are aging and younger people find little reason to stay or relocate in Washington County. The community recognizes that they need to draw in new industries and jobs that will attract young families to keep the towns from fading off the map.

Most of the residents in the region must rely on slow DSL from Consolidated Communications (formerly Frontier), while a few have access to cable from Spectrum (formerly Time Warner Cable); expensive and unreliable satellite is also an option and there's some limited fixed wireless coverage in the area. A few larger businesses that require fiber optic connectivity can find a way to have it installed, but Julie tells us that it's incredibly expensive in the area and most can't afford the high rates for fiber.

Economic Development Driven

logo-baileyville-me.png Organized in 2015, the nonprofit DEDC came together with the focus on recruiting new businesses to the area and to support existing businesses. As DEDC quickly discovered, unless the region could offer high-speed, reliable Internet infrastructure, attracting new businesses and helping existing businesses expand would be extremely difficult. They also determined that new families would not be interested in Baileyville or Calais without high-quality connectivity. "It was a no-brainer," says Julie, "you have to go fiber."

One of the largest regional employers, Woodland Pulp, need fiber in order to operate and as Julie describes, "they pay up the nose" for connectivity. All their equipment is computerized and they...

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Posted January 9, 2018 by lgonzalez

With only about 757,000 residents and more than 710,000 square miles North Dakota is ranked 53rd in population density among U.S. states, territories, and Washington DC. There may not be many people there, but North Dakota has some of the best connectivity in the United States. Why? Rural cooperatives and independent companies have made continued investments.

In episode 288, Christopher interviews Robin Anderson, Sales Manager for National Information Solutions Cooperative. Robin’s been working in the industry for years and has been involved in bringing better Internet access to rural areas in North Dakota. She has firsthand experience with the issues that arise during deployments and describes the camaraderie that grew naturally out of necessity when small, independent providers worked to achieve their goals to improve connectivity for cooperative members and rural subscribers.

Robin also touches on how federal loan funding helped so many of the cooperatives get started with fiber and how they took the next steps to self-fund as the demand grew. Christopher and Robin talk about the economics of fiber optic networks for cooperatives and the reasoning behind fiber investment in rural areas. They discuss some specific examples of the way collaboration in North Dakota has resulted in better networks.

Read the transcript for this show here.

This show is 28 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 Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Posted November 6, 2017 by lgonzalez

After a long and arduous process, the folks in Mount Washington, Massachusetts, were finally able to light up their publicly owned fiber optic network last week. According to resident and Select Board Chair Eleanor Tillinghast, “We are thrilled. We’re going to be the envy of everyone.”

It's Finally Here

As we reported last month, the community was eagerly anticipating the opportunity to finish up the last steps to begin connecting subscribers from the town's 146 premises. Approximately 100 are connected and will take services from local Internet service provider Crocker Communications. In addition to providing Internet access, the ISP will handle billing for the city, provide 24/7 tech support for subscribers, and monitor the network. The infrastructure will be maintained by the company that built it for the city, NextGen Group. Mount Washington owns the infrastructure.

Gigabit connectivity is available, but most subscribers have opted for 500 Megabits per second (Mbps). All speeds are symmetrical, which makes Mount Washington’s network valuable as an economic development tool. Community leaders are already seeing in increase in real estate transactions that they relate to the new network. “People may have ruled Mount Washington out before,” Select Board Member Brian Tobin told the Berkshire Edge. “But we just catapulted ahead of other towns in terms of amenities.” As a potential quiet retreat for New Yorkers located in the Taconic Mountains, Tobin and Tillinghast expect to lure more urbanites who want to work remotely for part of the week. Tobin also has a Manhattan apartment and says that his Internet access speeds in the city are only about 117 Mbps download with slower upload speeds.

A Long Process That's Paid Off

Up until now, many of the community’s residents relied on expensive, unreliable satellite Internet access. The remote nature of Mount Washington kept incumbents from investing in cable and only a few had access to DSL. In 2013, the community formed a broadband working group and began...

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Posted October 10, 2017 by ChristopherBarich

On August 1, 2017, the Franklin County Infrastructure Bank awarded Grove City, Ohio a $2 million loan to support their construction of a municipal fiber optic network. 

The Grove City Plan

According to the city’s Request for Proposal (RFP), the city is focused on first establishing an institutional network (I-Net) and plan to expand it to serve local businesses over time. The initial fiber optic network will connect Grove City to the South-Western City Schools, the townships of Jackson, Prairie, Pleasant, and the Solid Waste Authority of Central Ohio (SWACO). The goal is to create a network with a baseline of ten gigabits symmetric service, ten times the speed of current connections provided by Spectrum (formerly Time Warner Cable).

According to Mayor Richard “Ike” Stage, the increase in network speed will attract businesses and will generate a 100 new jobs for the city. Josh Roth, Senior Program Coordinator for Economic Development and Planning, has said “that Grove City has committed to one hundred jobs over the next three years.”

During the August 1, 2017 general session, the Franklin County Board of Commissioners  passed the resolution to authorize the loan to the city of Grove City. 

Franklin County Commissioner Kevin L. Boyce celebrated the project:

“[T]he fiber optics really makes a difference because companies will look at whether to expand or move there [Grove City]. It could be a deciding factor. Those are jobs that are retained that you may not see."

For more information on the positive relationship between publicly owned Internet network infrastructure and reyaining or...

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Posted September 6, 2017 by htrostle

Get your applications ready! The United States Department of Agriculture  Rural Utilities Service (USDA RUS) is accepting applications for another round of loans for the Rural Broadband Access Loan and Loan Guarantee Program. This program provides loans of up to $20 million for rural connectivity. The window to apply opened September 1st, and the deadline is September 30, 2017.

Thousands To Millions Of Dollars For Rural Areas

The USDA RUS has at least $60 million available this funding cycle for this program. All loans will be between $100,000 and $20 million. The program will only consider funding projects that offer speeds of at least 25 Megabits per second (Mbps) download and 3 Mbps upload.

For this program, the USDA RUS focuses on completely rural communities where at least 15 percent of households do not have high-speed Internet access. To be eligible, these rural areas cannot have more than two incumbent providers or have previously received USDA RUS funding. 

Although the program is specific to rural communities, most organizations are eligible to apply, including tribal governments, local governments, cooperatives, and corporations. No partnerships and no individuals may apply for funding, however, as the loans must go only to organizations.

This is only one of the Broadband programs that the USDA RUS manages. The agency also handles the Community Connect Grants and the Distance Learning & Telemedicine Program. The report “Broadband Loan and Grant Programs in USDA’s Rural Utilities Service” from the Congressional Research Services describes these programs in more detail.

Online Submission Only

The USDA RUS officially began accepting submissions September 1st and organizations have until September 30, 2017, to apply. If you are working in an area with poor Internet service, it’s important to note that this program only accepts applications through an online system. 

Through the online system, RUS staff can review applications and answer questions as they are developed. Once an application is complete and submitted, the staff cannot provide feedback and the organizations cannot edit their applications. 

Learn more...

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Posted July 4, 2017 by htrostle

On the border of Tennessee and Kentucky, an electric cooperative looks to a more connected future. The Tri-County Electric Cooperative that operates across state lines is preparing to build a state-of-the-art network for high-speed Internet service throughout Trousdale County, Tennessee. This will be the first year of construction for the cooperative after several years of planning.

Tri-County Electric plans to soon begin services to Trousdale County, the smallest county in Tennessee. Many of the county's 8,000 residents' choice is limited to Comcast and AT&T, and Tri-County Electric's Vice-President and General Manager Paul Thompson noted that people in the county often only subscribe to about 6 Mbps download and 1 Mbps upload. With a steady membership base of 50,000 spread across two states and a close relationship with the county, the electric co-op is in a good position to move forward with the Fiber-to-the-Home (FTTH) project. The cooperative intends to offer an affordable base package that provides faster, more reliable connectivity than what the incumbents are willing to offer the rural communities.

Funding From The Feds

Since 2014, Tri-County Electric Cooperative has actively pursued financing for a FTTH network in the county. The co-op applied for a grant through the Rural Broadband Experiments program managed by the Federal Communications Commission. They did not receive any funding, but the process resulted in a tangible plan.

The process of applying for the grant built up community support for the project and enabled the co-op to identify key assets. As part of the grant application, they noted which census blocks they expected to connect and what community anchor institutions, such as schools, libraries, and government buildings, could be included. The Trousdale County government even passed a resolution giving explicit permission for Tri-County Electric to build and operate a FTTH network. 

Although Tri-County Electric Cooperative did not receive that grant, the co-op continued to pursue different avenues for funding. This year, the co-op received a...

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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...

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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...

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