Tag: "middle mile"

Posted May 16, 2011 by christopher

Counties in northeast Georgia are among the latest to examine their options to improve access to the Internet in local communities due to the massive failure of the private sector to adequately invest in essential infrastructure needed for economic development and maintaining a high quality of life.

Those involved may include Stephens County, Hart County, Franklin County, Rabun County, and Habersham County. However, Franklin County refused to contribute to a feasibility study, with some arguing that the "utility owners" should do it - though it is not clear which "utility owners" are referenced here. Others found this troubling:

“I think some of the other commissioners maybe feel like it’s more of a private matter, that some of the commercial businesses should be putting in infrastructure,” he said. “However, someone like Windstream, if they have a potential customer for a data center, they’re going to steer that customer to where they have infrastructure. They don’t care about Franklin County.”

It’s important to understand, he added, that high-quality jobs will not come to Franklin County if it is not up-to-date with its infrastructure.

This is exactly correct -- what does a private sector provider care about a single county in Georgia? They care about a fast return on their investment, not about a community's vitality.

In the meantime, Stephen's County has contributed $500 toward a match for the study.
Minutes from the Feb 28 meeting of Stephens County Development Authority [pdf] offer more details of the study:

OneGeorgia’s Nancy Cobb has approached the Joint Development Authority of Franklin, Hart & Stephens Counties and “offered” to fund 80% of a Broadband Connectivity Feasibility Study (expected to cost about $240,000) in northeast Georgia. Her offer is contingent upon us actually officially requesting it and matching it with 20%. We anticipate her next meeting to be sometime in May/June. The more we study...

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Posted May 6, 2011 by christopher

Thanks to Minnesota Public Radio for an update on stimulus broadband projects in NE MN. A massive non-profit middle-mile project called the NorthEast Service Cooperative will finally provide redundancy and modern connections to an area long neglected by Qwest.

Hundreds of miles of fiber optic cables will bring faster Internet access to the Arrowhead region of Minnesota by the end of this summer. Ground for a broadband network stretching 915 miles was broken yesterday. Sen. Al Franken (D-MN) and other politicians were on hand to tout the long-term economic significance of this federally funded project.

Soon, entire counties will not have to fear disastrous meltdowns from Qwest's inability to offer reliable services, as when they went 12 hours without any telecommunications, meaning police could not run background checks or run plates, credit cards and ATMs went offline, and border security had to use Canadian comms.

Northland News offered greater coverage as well as a video that would not embed here for reasons unknown.

The 915 miles of fiber optic network will stretch across eight counties in the Arrowhead Region and bring world class web speeds to the area.

State lawmakers were also on hand at the ceremony and say this type of technology is pivotal to economic development.

"I want this to be the next step in people realizing that economic diversification on the Iron Range can be done because we are wired, we're ready to go, and we have a work force that is second to none," said state Sen. David Tomassoni.

We have to wonder how many of these legislators will support removing barriers in Minnesota law to communities building their own networks.

Note that the the NE Service Coop is a middle-mile network and that Frontier will be using it to improve their services.

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Posted April 13, 2011 by christopher

South Carolina has been quietly debating a bill to further erode the right of communities to decide locally whether they want to build broadband networks. South Carolina already restricts the rights of communities to build these networks but HB 3508 / SB 483 will effectively make any local government ownership of telecommunications facilities impossible.

Unsurprisingly, this bill is opposed by the South Carolina Association of Counties and the Municipal Association of South Carolina. But the lead opposition to it has come from Bill Clark, an Administrator from rural Orangeburg County. On the other side is AT&T, the nation's 10th largest company.

The bill is blatantly protectionist for AT&T interests, throwing South Carolina's communities under the bus. But as usual, these decisions about a "level playing field" are made by legislators solely "educated" by big telco lobbyists and who are dependent on companies like AT&T for campaign funds. Even if AT&T's campaign cash were not involved, their lobbyists talk to these legislators every day whereas local communities and advocates for broadband subscribers simply cannot match that influence.

We see the same unlevel playing field, tilted toward massive companies like AT&T, in legislatures as we do locally when communities compete against big incumbents with their own networks. Despite having almost all the advantages, they use their tremendous power and create even more by pushing laws to effectively strip communities of the sole tool they possess to ensure the digital economy does not pass them by.

South Carolina's access to broadband is quite poor -- 8th worst in the nation in access to the the kinds of connections that allow one to take advantage of the full Internet according to a recent FCC report [pdf].

A letter from Bill Clark to Senators notes that their county has an industrial park with over 1 million sq ft of developed facilities housing two Fortune 500 companies that private companies have not served [pdf].

This comes as no surprise given the facts:

  • South Carolina is served predominately by massive private providers...
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Posted April 12, 2011 by christopher

Steuben, Chemung, and Schuyler counties have joined with fiber-optic cable manufacturer Corning to announce a middle-mile network connecting community anchor institutions, wireless towers, etc. Corning picked up the lion's share of the network, $10 million of the $12.2 million price tag.

Local governments, educational institutions, health care organizations and other commercial/industrial businesses also stand to benefit greatly, said Marcia Weber, Southern Tier Central executive director.

Possible applications include “distance learning” between college campus branches and “telemedicine” between rural clinics and major hospitals, Weber said.

The project has been a top priority for Southern Tier Central in recent years. Weber, who called it “her passion,” was very disappointed when a major federal stimulus grant was narrowly missed last year.

The counties’ share (Steuben, $1.23 million; Chemung, $790,000; Schuyler, $188,000) will fund a non-profit, to be called Southern Tier Network, that has been created to oversee and maintain the network.

The project starts this year and expects to be finished by 2013. In 2014, the project is expected to become self-sustainable -- being funded by the fees it charges for access to the infrastructure.

A fact sheet on the project [pdf] explains the governing structure:

Southern Tier Network is a new not-for-profit, local development corporation (LDC) established to own, build and manage a $12.2 million regional fiber optic backbone that will enable access to the highest speed broadband connectivity available in Chemung, Schuyler and Steuben Counties. Articles of Incorporation for Southern Tier Network have been filed with New York State, and a board of directors is in place, comprised of representatives from the three counties and other community stakeholders.

The fact sheet also explains the idea of Middle Mile and Open Access (referencing Axcess Ontario, a similar project funded by Ontario County):

Southern Tier Network will...

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Posted March 8, 2011 by christopher

In an op-ed, Tom Evslin discusses FairPoint and their opposition to a middle mile stimulus grant that would improve broadband access around the state. FairPoint had taken over Verizon's New England lines a few years ago. Verizon had a reputation for poor service but FairPoint took that to new levels before reorganizing under bankruptcy (yet another high-profile private sector failure).

FairPoint fought a middle-mile project in Maine and was eventually bribed into silence by the Legislature. Having learned the only lesson one can learn from such an experience, they are now fighting a middle mile project in Vermont.

Unfortunately FairPoint, the successor to Verizon for landlines in Northern New England, wants Vermont to choose between protecting a badly flawed FairPoint business plan or improving the economic future of Vermont’s rural areas. The choice is stark: use the federal “middle mile” stimulus grant already awarded to the Vermont Telecommunication Authority (VTA) to bring fiber closer to rural Vermonters and make wholesale backhaul and institutional broadband affordable in rural areas of the state or forfeit the grant and leave these areas without adequate business, residential and cellular service.

Vermont should move forward with its stimulus project to expand open access middle mile connections across the state. Appeasing FairPoint yet again is not only bad for Vermont's many underserved, it would further embolden FairPoint in its fight against any competition, public or private.

The VTA was formed to improve broadband access while not providing services directly. There is no reason it should not invest in these middle-mile networks. Quoting again from Evslin op-ed:

Now President of FairPoint in Vermont, Mike Smith said yesterday in an interview broadcast on WCAX that he never meant that the VTA should build fiber networks and provide middle-mile (backhaul) service. He thought it would be directing its...

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Posted February 9, 2011 by christopher

In South Carolina (the state TWC Forgot), AT&T is pushing harsher restrictions on any publicly owned broadband system in an attempt to derail one or more broadband stimulus projects. South Carolina already greatly restricts community broadband networks, likely one of the reasons no incumbent there bothers to upgrade in a similar time frame as the rest of the country.

This should be seen a significant overreach -- AT&T is trying to shut down County efforts to improve middle mile access -- whereas most preemption tends to heavily restrict community last-mile networks. This is a whole new world of anti-competitive policy to favor AT&T (not dissimilar from what AT&T wants to do in Wisconsin and Fairpoint did in Maine).

The bills would force Oconee County to follow guidelines as a broadband service provider that would likely cripple the county’s current three-year project to construct 245 miles of broadband cable, county administrator Scott Moulder said.

...

Oconee County’s goal is to be a so-called “middle mile” provider, Moulder said, essentially providing a network that would allow private broadband providers to extend their service into areas they aren’t serving. In most cases, those are areas where the private providers have found it is not financially feasible to install their own infrastructure.

AT&T, Moulder said, has been asked to be a partner in the project as a retailer, but the company’s current actions are a rebuff.

The Oconee project is meant to attract additional independent service providers to invest in projects, not the County itself. But that hardly matters to AT&T, which wants to preserve the present lack of competition in order to maximize their gains at the public expense.

The Bill, S 483 is viewable here and contains the same old tired arguments claiming...

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Posted January 3, 2011 by christopher

Ontario County was working on a publicly owned solution to Middle Mile long before the broadband stimulus approach made it popular. And now, before most of the stimulus money has been disbursed, they have completed an expanded version of their initial plan.

To date, Axcess Ontario has signed master agreements with eight telecom and broadband companies, including Verizon Wireless and national broadband provider tw telecom. Axcess Ontario is in continual discussions with other service providers, and is working aggressively on its next goal of luring a fiber-to-the-home (FTTH) service provider to Ontario County. With the fiber ring complete, businesses and municipalities now have access to faster and less expensive broadband, as well as bandwidth equal to global broadband leaders. Businesses can gain access to the ring simply by contacting any of the eight service providers that work with Axcess Ontario. Residents do not yet have access to faster and less expensive broadband, but they will once a FTTH service provider is secured. Axcess Ontario has been working to lure a FTTH provider for more than a year, including submitting an application on behalf of Ontario County, NY, to Google's "Fiber for Communities" ultrafast broadband project earlier this year. More than 1,100 communities nationwide responded to that project, and Google just announced last week that it was postponing its selection of winning communities to early 2011.

We will be interested to see if they can lure a FTTH provider -- though middle mile can lower the operating costs of providing such a service, the capital costs are not significantly changed. And with the robust middle mile already connecting community anchor institutions, a new FTTH provider cannot count on those high-revenue customers. We have seen this previously in Alberta, Canada. Axcess Ontario is an example of a good public-private partnership - as noted in Telecompetitor:

Axcess Ontario credits much of its $2 million cost savings to a lease agreement with Ontario Telephone Co., an incumbent local carrier.

...
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Posted September 26, 2010 by christopher

Almost $45 million from the broadband stimulus is heading to OneCommunity, a nonprofit organization in Northeast Ohio (originally named OneCleveland), in order to expand their network across 27 counties.

OneCommunity expects 800 new subscribers -- colleges, hospitals, universities and governmental entities -- to tie into the network.

OneCommunity generally works by expanding middle mile networks through partnerships with other nonprofits as well as the private sector. Learn more about the plans and background of OneCommunity from its press release or their web site.

Posted September 23, 2010 by christopher

A few weeks ago, the Herald Tribune ran a number of articles about broadband by Michael Pollick and Doug Sword that discussed some community fiber networks and efforts by Counties in Florida to build their own fiber-optic networks.

The first, "Martin County opting to put lines place," covers the familiar story of a local government that decides to stop getting fleeced by an incumbent (in this case, Comcast) and instead build their own network to ensure higher capacity at lower prices and often much greater reliability.

Martin County, FL

"We decided for the kind of money these people are asking us, we would be better off doing this on our own," said Kevin Kryzda, the county's chief information officer. "That is different from anybody else. And then we said we would like to do a loose association to provide broadband to the community while we are spending the money to build this network anyway. That was unique, too."

The new project will use a contractor to build a fiber network throughout the county and a tiny rural phone company willing to foot part of the bill in return for permission to use the network to grab customers of broadband service. The combined public-private network would not only connect the sheriff's office, county administration, schools and hospitals, but also would use existing rights of ways along major highways to run through Martin's commercial corridors.

Michael Pollick correctly notes that Florida is one of the 18 states that preempt local authority to build broadband maps.

However, they incorrectly believe that Martin County is unique in its approach. As we have covered in the past, a number of counties are building various types of broadband networks.

This is also not the first time we have seen a local government decided to build a broadband network after it saw a potential employer choose a different community because of the difference in broadband access.

From there, Michael Pollick and Doug Sword...

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Posted September 21, 2010 by christopher

Perhaps the biggest disappointment from the broadband stimulus program was its focus on middle mile investments in a bid to avoid overly upsetting powerful incumbent providers who do not look kindly upon competition (something we discussed here). Some claimed that by increasing middle mile options, the private sector will have greater incentive to invest in the next-generation broadband networks communities desperately need. While this is undoubtedly true, it ignores the biggest hurdle facing network deployers: the high cost of building the network. Reducing the operating expenses of a new network by dropping backhaul prices does very little to allow a deployer (private, public, etc) to better afford the high capital cost of building the network. To illustrate, I could greatly improve my vertical but I still would not play in the NBA (apparently, that requires talent also). Remarkably, we have a fantastic test case of what happens when a government builds massive middle-mile connections and expects the private sector to complete the last mile build: Alberta Province in Canada. Ten years ago, Alberta began building the Supernet, a massive mostly fiber backbone delivering 100Mbps into just about every town in the province (we wrote about this in the back of our Breaking the Broadband Monopoly report). Despite the fact that anyone could get affordable backhaul, a recent Calgary Herald article revealed that half a million people still only have access to dial-up. This illustrates an important lesson: by making ubiquitous backhaul available, the private sector did invest. Unfortunately, it invested only in the profitable areas and has left perhaps a larger problem behind for the public sector to solve.

The plan was to leave it up to private Internet service providers to supply the final leg of the connection between the SuperNet and individual users. Unfortunately for many residents who live outside of major urban centres, there's often little financial incentive for providers to do so.

Some munis in Alberta have built last mile networks themselves...

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