Tag: "loan"

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...

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Posted September 10, 2016 by lgonzalez

Culver City officially broke ground on its new municipal fiber-optic network in August and expects to finish the project within one year. The beginning of construction marked the realization of a process that started some time ago in “The Heart of Screenland.”

Enter Culver Connect

Culver Connect will integrate existing publicly owned fiber to improve connectivity for municipal facilities, the Culver City Unified School District, and local businesses. The design for Culver Connect includes three rings and will add 21 miles to ensure redundancy and expand the footprint of the existing network.

The open access network will connect with carrier hotel One Wilshire and a hub in El Segundo. In addition to improving capacity and spurring economic development, Culver City community leaders want to encourage competition by lowering the cost of entry for Internet Service Providers (ISPs).

In 2013, the city hired a firm to draft a fiber network design and business plan framework. Soon after, members of the business community and leaders in education spoke out in the media, encouraging elected officials to take steps to improve Culver City’s connectivity. In November 2015 the City Council established a Municipal Fiber Network Enterprise Fund to be used for construction costs.

Staff estimated that the capital costs of the network backbone would be approximately $4.9 million and initial lateral builds would be another $2 million. Staff determined operating and maintenance costs would be $150,000 per month and projected revenues from leases after three to four years of operations at around $7.1 million in total. They also estimated that revenues will cover the cost of operation and equipment depreciation once the network is fully operational. The city hopes to lease to ISPs to offer choice to local businesses.

Posted May 23, 2016 by htrostle

Cedar Falls may be the Iowa city famous for its Fiber-to-the-Home (FTTH) network, but that won’t stop Muscatine. This small city of approximately 29,000 people is about to upgrade its aging network. For a little over a year, the municipal utility, Muscatine Power and Water (MP&W), has planned for the move to FTTH with funding from an interdepartmental loan. Now, FTTH is coming to Muscatine's MachLink Internet access service.

MP&W expects to break ground this year on this $8.7 million FTTH project and to finish building the network in 2017. Fiber will offer speeds much faster than those available on the existing hybrid fiber-coax (HFC) network. In anticipation, MP&W is increasing speeds for subcribers without raising rates.

More than a Year in the Making

The local newspaper, the Muscatine Journal, has closely followed the story. In late November 2014, MP&W announced the planned FTTH upgrade. MP&W is taking a slow and steady approach and planning to complete the upgrade in 2017. The latest Muscatine Journal article from this March emphasized how the large infrastructure project has many "interlocking" pieces that must fit together to make the project successful.

As we reported when MP&W announced the upgrade in 2014, a FTTH network will achieve immediate goals and help achieve a number of benefits. MP&W wants to improve residential services, reduce maintenance costs, and increase network reliability. Upgrading to FTTH will also contribute to long-term goals, such as encouraging economic development. Fiber is a future-proof technology, adapting to the increasing need for bandwidth from households, businesses, and institutions. MachLink will offer speeds of up to a Gigabit (1,000 Megabits) per second.

Outperforming Expectations

In the spirit of community, MP&W is increasing speeds without raising rates. MP&W announced that current customers will get twice the speed for no additional charge. Current MachLink subscribers with the fastest tier receive 100 Megabits per second (Mbps) download which will double, but Gigabit...

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Posted April 19, 2016 by christopher

When we launched this podcast in 2012, we kicked it off with an interview from Minnesota's farm country, Sibley County. We were excited at their passion for making sure every farm was connected with high quality Internet access.

After the project took a turn and became a brand new cooperative, we interviewed them again in 2014 for episode 99, but they hadn't finished financing. They broke ground 2015 and today we discuss the model and the new Institute for Local Self-Reliance (ILSR) case study that details how they built it.

City of Winthrop Economic Development Authority Director Mark Erickson and Renville-area farmer Jake Rieke are both on the board of RS Fiber Cooperative and they join us to explain how their model works.

We at ILSR believe this model could work in much of rural America, in any community that can summon a fraction of the passion of the citizens from Sibley and Renville counties. Having watched this project for all the years it was being developed, I cannot express how impressed I am with their dedication. And because they own it, I'm thrilled to know that no one can take it away from them.

Read the transcript from this show here.

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

This show is 35 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 view all episodes in our index.

Thanks to...

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Posted January 19, 2016 by htrostle

Welcome to high-speed Internet on the Iron Range! This past fall, the Northeast Service Cooperative (NESC) completed a multi-year project, a fiber optic network spanning nearly 1,000 miles, on Minnesota’s north shore.

The project, the Northeast Fiber Network, connects public buildings, such as health care facilities, community libraries, colleges and universities, tribal facilities, and government offices. The fiber provides the opportunity for next-generation connectivity in many unserved and underserved areas of eight counties: St. Louis, Cook, Lake, Pine, Itasca, Koochiching, Carlton, and Aitkin. It’s exciting to see this rural project finally come to fruition.

Institutional Network: Now to Go the Last Mile

It’s an institutional network, which means it brings high-speed Internet to community anchor institutions throughout the region. So far, about 320 public entities, including 31 school districts, have connected to the network. The network is designed to provide middle mile connectivity for community anchor institutions, not to bring connectivity to residents and businesses of the region. As with most federally funded projects, the plan is to provide middle mile infrastructure with the hope that the private sector will be more able or willing to invest in last mile connectivity.

That last mile, to homes and businesses, presents a challenge. NESC is leasing fiber to public and private providers and working to ensure that the network can serve as a backbone to greater connectivity. Actively working with private providers, NESC offers a bright future for unserved and underserved communities on the Iron Range.

Collaboration & Funding

Through a combination of grants and loans from federal programs, the project began about four years ago. The total cost came to about $43.5 million: 50 percent loans and 50 percent grants. The federal programs supporting the project were the USDA (Department of Agriculture) Rural Utility...

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Posted December 4, 2015 by htrostle

Montana may have high speed limits on roads, but this Montana coop’s network will let you surf the web even faster. Triangle Communications received an almost $30 million loan from the USDA to provide rural Central Montana with high-speed Internet access.

Triangle Communications will finish upgrading its aging copper network - a technology mostly used for telephone - to a fiber network that can support both telephone and high-speed Internet. The loan comes from the USDA’s initiative, announced in July, promising $85 million to improve connectivity in rural areas. The Triangle Communications coop is upgrading its entire system spanning 16 counties (that’s more than 23,000 square miles from the Canadian to the Wyoming border!). 

Since 1953, the coop has been at the forefront of changing technologies. It’s based in Havre but expanded in 1994 with the purchase of 13 exchanges from US West (now known as CenturyLink). The coop began upgrading to fiber in 2009 in order to provide its members with state-of-the-art service and technology.

For more information about the network and the award, check out local news coverage of the almost $30 million loan and Triangle Communications’ video.

 

Posted October 6, 2015 by htrostle

This past July the USDA announced over $85 million in funding for rural broadband projects across seven states. The projects, many awarded to rural cooperatives, aim to bridge the digital divide and expand economic opportunities. For those interested in federal funding opportunities, NTIA has just released this guide [pdf].

Rural areas are often passed over by big telcos because they are considered less profitable. Farming, however, is a high-tech industry, and Agriculture Secretary Tom Vilsack believes that Internet access is as necessary as electricity in rural areas:

"Broadband is fundamental to expanding economic opportunity and job creation in rural areas, and it is as vital to rural America's future today as electricity was when USDA began bringing power to rural America 80 years ago. ...  Improved connectivity means these communities can offer robust business services, expand access to health care and improve the quality of education in their schools, creating a sustainable and dynamic future those who live and work in rural America."

The USDA has awarded more than  $77 million in Community Connect Grants for rural broadband projects (since 2009). This July, the USDA loaned $74.8 million and awarded another $11 million in Community Connect Grants. Here is the current round-up of the USDA’s most recent loans and grants:

Alaska

Arctic Slope Telephone Association Cooperative Inc. will connect Point Hope subscribers and prepare for an undersea fiber line with a $1.4 million grant.

Minnesota

Garden Valley Telephone, one of the largest coops in Minnesota, will continue to expand its FTTH service area with a $12.63 million loan. On average, the coop serves two households per square mile.

Consolidated Telephone, another coop, will perform upgrades and add a new fiber ring to allow for greater bandwidth with a $12.27 million...

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Posted September 9, 2015 by phineas

Six years after an initial feasibility study was conducted to assess bringing broadband to Renville and Sibley Counties in southeastern Minnesota, members of the RS Fiber Cooperative board were finally able to dust off their shovels for a groundbreaking ceremony on July 9. Although those shovels may have ended up being more symbolic than they were practical, the ceremony marked an important and long-awaited step in the fight to extend broadband to 10 cities and 17 rural townships across the largely agricultural region.

The groundbreaking ceremony marked the start of stage one of a two-stage project that will take five to six years to complete. By the end of 2015, the RS (Renville-Sibley) Fiber Cooperative plans to connect 1,600 homes and businesses with fiber, with 90 percent of its service area covered by high-speed wireless. It hopes to connect another 2,600 homes and businesses by the end of 2016, with the eventual goal of reaching 6,200 potential customers. At the event, Toby Brummer, RS Fiber General Manager, highlighted the importance of broadband Internet to rural development:

This technology is to this generation what rural electric and rural telephone was to generations years ago.

The RS Fiber Cooperative is member-owned and member-driven, led by a Joint Powers Board that formed in 2009. In order to provide FTTH to the rural locations across the two counties, the cooperative partnered with a network operator, Hiawatha Broadband Communications, that already serves 17 communities in southeast Minnesota. RS Fiber will offer residential Internet speeds up to 1 gigabit for $129.95. It will also connect schools, bolster home and farm security systems, and even facilitate high school sports broadcasts and telemedicine initiatives.

The local governments each sold a General Obligation Tax Abatement Bond that in aggregate totalled $15 million that was loaned to the cooperative, which helped offset the cost of the...

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Posted September 1, 2015 by christopher

Danville, Virginia, has long been one of the municipal network approaches that we like to highlight. Built in a region hard hit by the transition away from tobacco and manufacturing economies, the open access fiber network called nDanville has led to many new employers coming to town and has shown the benefits of a low-risk, incremental investment strategy for building a fiber network.

Jason Grey, Interim Utilities Manager, is back on the show to update us on their approach. He introduced the network to us three years ago on episode 22.

Since we last checked in, Danville has continued expanding the fiber network to a greater number of residents and Jason talks with us about the importance and challenges of marketing to residents. We also discuss how they lay conduit as a matter of course, even in areas they do not plan to serve immediately with the fiber network.

Read all of our coverage of Danville here.

Read the transcript from this episode here.

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

This show is 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to other episodes here or view all episodes in our index. You can can download this Mp3 file directly from here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."

Posted December 11, 2014 by lgonzalez

Muscatine Power & Water (MP&W) announced in late November that it will upgrade its municipal hybrid fiber coaxial (HFC) communications network to an FTTH network. The upgrade will allow Muscatine to offer gigabit speeds. Construction is set to begin in 2016; the FTTH network is scheduled to go live in 2017.

According to the press release, the community hopes to capitalize on the new technology for economic development opportunities, better residential services, and replace an aging system with future proof infrastructure. From the press release [PDF]:

Consideration was also given to two other plans that would have either maintained or incrementally improved the existing HFC system. As stewards of the public trust, the Board of Trustees felt the other options were costly short-term fixes and that FTTH was clearly the superior option.

“Tonight’s decision assures that Muscatine Power and Water will continue to be a leader in telecommunications,” said LoBianco, “the new system will be able meet the bandwidth needs of the community for years to come while reducing maintenance and improving reliability. It ensures that the communications capabilities in Muscatine are as good as in any large city which enjoys the benefits of FTTH technology.”

Muscatine sits in the far southeast corner of the state and is home to approximately 29,000 people. The community established a municipal water utility in 1900, an electric utility in 1922, and its communications utility in 1997. According to the press release, the community was unhappy with the previous incumbent and an overwhelming majority of local voters elected to establish what is now called MachLink. The network offers video and Internet access.

A Muscatine Journal article reporting on a recent meeting of the Board of Water, Electric, and Communications Trustees notes that the project will be funded with an interdepartmental loan, one of the three most common funding mechanisms. (For more on funding municipal networks, check out our fact sheet [PDF].)

The article also...

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