Tag: "gigabit"

Posted January 16, 2014 by christopher

Let me start by saying that I don't yet know anything in addition to what I write below. We are all waiting for more details. On January 30, the FCC will take action on the FTTH Council's Gigabit Race to the Top progam. We previously took a brief look at the idea, while focusing on big cable and telephone companies' responses.

FTTH Council expects the FCC to adopt a test program that will start with a call for those interested to submit "expressions of interest." The reason we are noting this now, when we know so little about the program is that they believe the program will move quickly once it is announced, so those who may be interested should start planning for it.

From what we know, this program will be open to community owned networks and will be largely focuses on smaller markets with preference for networks that will be improving connections to anchor institutions in particular.

Below, I have embedded a discussion between Craig Settles and Alyssa Clemsen-Roberts, the Industry Affairs Manager at the Utilities Telecom Council.

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Posted January 10, 2014 by lgonzalez

The latest addition to the growing list of gigabit communities is Reedsburg, Wisconsin. For residential customers, the service is available for $274.95/month when bundled or $299.95/month standalone. The network has long delivered gigabit services to local businesses but the residential offer is new.

In a recent press release the Reedsburg Utility Commission (RUC) announced it now offers gigabit service to business and residential customers. From the press release:

“More and more businesses and homes need a faster connection to consume and produce large amounts of data.  Our gigabit network will accommodate those needs well into the future,” said RUC General Manager Brett Schuppner. “Offering gigabit broadband services is very rare in this country and I am proud to be part of a community that is so technologically advanced.  RUC strives to reach new levels of innovation with our 100% fiber optic network serving Reedsburg, Loganville, Lake Delton, and surrounding rural communities.”

Reedsburg is located approximately 55 miles northwest of Madison and is home to 10,000 residents. Reedsburg began dabbling in fiber optic infrastructure in 1998 to connect electric substations and provide Internet service to several public schools. The RUC provides water, electricity, and triple-play to the community. Community leaders took advantage of opportunities over the years to extend the reach of its network, including a 2010 American Recovery and Reinvestment Act (ARRA) award to expand the FTTH network.

Posted January 9, 2014 by christopher

This the second in a series of posts exploring lessons learned from the Seattle Gigabit Squared project, which now appears unlikely to be built. The first post is available here and focuses on the benefits massive cable companies already have as well as the limits of conduit and fiber in spurring new competition.

This post focuses on business challenges an entity like Gigabit Squared would face in building the network it envisioned. I am not representing that this is what Gigabit Squared faced but these issues arise with any new provider in that circumstance. I aim to explain why the private sector has not and generally will not provide competition to companies Comcast and Time Warner Cable.

Gigabit Squared planned to deliver voice, television, and Internet access to subscribers. Voice can be a bit of hassle due to the many regulatory requirements and Internet access is comparatively simple. But television, that is a headache. I've been told by some munis that 90% of the problems and difficulties they experience is with television services.

Before you can deliver ESPN, the Family Channel, or Comedy Central, you have to come to agreement with big channel owners like Disney, Viacom, and others. Even massive companies like Comcast have to pay the channel owners more each year despite its over 10 million subscribers, so you can imagine how difficult it can be for a small firm to negotiate these contracts. Some channel owners may only negotiate with a provider after it has a few thousand subscribers - but getting a few thousand subscribers without good content is a challenge.

Many small firms (including most munis) join a buyer cooperative called the National Cable Television Cooperative (NCTC) that has many of the contracts available. But even with that substantial help, building a channel lineup is incredibly difficult and the new competitor will almost certainly be paying more for the same channels as a competitor like Comcast or Time Warner Cable. And some munis, like Lafayette, faced steep barriers in just joining the coop.

FCC Logo

(An...

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Posted January 6, 2014 by christopher

A few weeks ago, a Geekwire interview with outgoing Seattle Mayor Mike McGinn announced that the Gigabit Squared project there was in jeopardy. Gigabit Squared has had difficulty raising all the necessary capital for its project, building Fiber-to-the-Home to several neighborhoods in part by using City owned fiber to reduce the cost of building its trunk lines.

There are a number of important lessons, none of them new, that we should take away from this disappointing news. This is the first of a series of posts on the subject.

But first, some facts. Gigabit Squared is continuing to work on projects in Chicago and Gainsville, Florida. There has been a shake-up at the company among founders and it is not clear what it will do next. Gigabit Squared was not the only vendor responding to Seattle's RFP, just the highest profile one.

Gigabit Squared hoped to raise some $20 million for its Seattle project (for which the website is still live). The original announcement suggested twelve neighborhoods with at least 50,000 households and businesses would be connected. The project is not officially dead, but few have high hopes for it given the change in mayor and many challenges thus far.

The first lesson to draw from this is what we say repeatedly: the broadband market is seriously broken and there is no panacea to fix it. The big cable firms, while beating up on DSL, refuse to compete with each other. They are protected by a moat made up of advantages over potential competitors that includes vast economies of scale allowing them to pay less for advertising, content, and equipment; large existing networks already amortized; vast capacity for predatory pricing by cross-subsidizing from non-competitive areas; and much more.

So if you are an investor with $20 million in cash lying around, why would you ever want to bet against Comcast - especially by investing in an unknown entity that cannot withstand a multi-year price war? You wouldn't and they generally don't. The private sector invests for a return and overbuilding Comcast with fiber almost...

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Posted January 4, 2014 by lgonzalez

Residential customers of Co-Mo Connect in Missouri will see a free upgrade this spring. In a December announcement, the cooperative stated it will also begin offering gigabit Internet service for $99.95 per month.

“There are no strings attached,” said Randy Klindt, Co-Mo Comm's general manager. “We’re doing this because we can, because the network has the capacity and we received a good deal on bandwidth. We’re passing those speeds and savings onto our subscribers.”

New residential service options:

  • 5 megabits per second for $39.95 a month; 
  • 35 mbps (currently 20 mbps) for $49.95 a month; 
  • 100 mbps (currently 50 mbps) for $59.95 a month;
  • 1 gbps (currently 100mbps) for $99.95 a month.

According to the announcement, small businesses will also receive speed increases with no increase in price. Klindt notes that Co-Mo prides itself on gimmick-free pricing:

“Nothing is going to decrease after six months or whatever the other companies do,” he said. “And subscribers don’t have to do anything to get the extra speed. If you’re on the 20, 50 or 100 megabit tier right now, we’re simply going to turn up your speed when this becomes available sometime this coming spring.”

We reported on Co-Mo in 2012, as the cooperative began expansion of services. At the time, Co-Mo had been passed over for American Recovery and Reinvestment Act (ARRA) funding. Coop members wanted to improve the broadband situation for better economic opportunity so Co-Mo pressed on without federal funding. The plan to bring FTTH to all 25,000 coop members has four phases with completion scheduled for 2016.

Posted January 3, 2014 by lgonzalez

In 1985, Auburn Electric became one of the first communities in the midwest to deploy fiber. At the time, the purpose was to improve electric and voice systems substation communications within the municipal utility. That investment laid the foundation for a municipal network that now encourages economic development and saves public dollars while enhancing services.

Auburn expanded its fiber network beyond electric systems in 1998. The utility began using the network to serve city and county government operations. It is not well known, but Auburn offered gigabit service to its public sector customers way back in 1998.

The benefits from the deployment prompted community leaders to develop an Information Technology Master Plan in 1998 that would answer the question of what other ways the fiber could serve the community? As part of the Master Plan, Auburn leaders collected information from other communities that were capitalizing on their own local fiber. While Auburn made no immediate plans, they kept an open mind, waiting until the time was right.

In 2004, Cooper Tire and Rubber (now Cooper Standard) was about to be sold from its parent company. The $1.6 billion auto component manufacturer needed a data center but bandwidth was insufficient and inconsistent in Auburn. Cooper considered leaving because the incumbents, Mediacom and AT&T, could not or would not provide the broadband capacity the company needed. If Cooper left town, an estimated $7 million in wages and benefits from 75 high-paying tech jobs would also leave. At the time, Auburn was home to 12,500 people.

County Courthouse in Auburn, Indiana

According to Schweitzer, the City tried to persuade the telephone company to find a solution with Cooper but the two could not reach an agreement. Rather than lose Cooper, the City of Auburn stepped in to fill the connectivity gap in 2005.

In a 2007 interview with Public Power magazine, Schweitzer noted advantages in Auburn that facilitated the project:

“We also had a major tier-one Internet provider with a...

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Posted December 31, 2013 by christopher

This week, Don Means joins us to talk about public libraries, their role in the modern era, and an interesting pilot project involving several libraries and white spaces wireless technology. Don is the coordinator of the Gigabit Libraries Network and has a passion for both libraries and expanding Internet access to all.

We offer some basic background on "TV white spaces" wireless technology (see our other coverage of that technology here). The pilot libraries in this project are using white spaces as backhaul from a library branch location to nearby areas where they have created Wi-Fi hot spots.

Libraries involved with the project are located in Kansas, New Hampshire, Colorado, Illinois, Mississippi, and California.

You can 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. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 15 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 previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Haggard Beat for the music, licensed using Creative Commons.

Posted December 16, 2013 by lgonzalez

The Wired Road, a community-owned open access network, provides affordable fiber connectivity in rural Virginia. The network recently upgraded and now offers Gigabit commercial service in the Blue Ridge Crossroads region. From the press release:

“America only has a few networks offering 1 Gigabit Broadband Services; it’s awesome that we have that technology here in our backyard,” Stated Scarlett McGrady with The Wired Road Authority. "Availability of technologies like this is vital for this area to grow," said McGrady.

The network still offers fiber and wireless services at basic speeds to private and business customers in Carroll and Grayson Counties. The Wired Road encourages competitive rates for the region with its open access model. Lingo Networks, 1Point Communications, and LSNet all offer Internet access to Wired Road customers. 

For more on The Wired Road story, listen to Christopher interview McGrady in Episode 31 of the Broadband Bits Podcast.

Congrats to the people and businesses in The Wired Road service area!

Posted December 5, 2013 by lgonzalez

As of December 2, students and staff in Cedar Falls schools have access to 1 gig Internet service from Cedar Falls Utilities (CFU). The WCF Courier reports that the Board of Education recently decided to switch from the Iowa Communications Network (ICN):

Doug Nefzger, the district's financial officer, said though Des Moines-based ICN has been a great partner for a number of years, it's always best to go with a local group.

"We may be paying a little bit more money but what this provides for our kids far outweighs the added expense associated with that," Nefzger said.

The District will pay CFU approximately $11,400 per year for gigabit Internet access to be shared between nine schools and three other District facilities. ICN provided 130 Mbps Internet service for $8,200 per year. The District will now have the capacity to provide a tablet or laptop to each student by 2015. The 1:1 goal is part of the District's five-year technology plan.

According to Rob Houlihan, Network Service Manager at CFU, each building is already connected via CFU fiber. As a result, District buildings will also enjoy a 1 gig WAN. Robust Internet access is important, but a high capacity WAN improves communication between facilities with no need to send data to the Internet. CFU provides fiber connections at no charge to the District, saving significant public dollars. Shane Paige, Supervisor of Technology Services at the Cedar Falls Schools noted via email:

That could easily cost us $5,000-$10,000 per month after discounts if we were leasing lines. We have been extremely fortunate in the fact that we have never been put in that position of having to deal with the extra costs of point to point connections for our buildings.

CFU also provides free cable television service to twelve District facilities, saving approximately $600 per month.

For more on how CFU is serving the community, listen to our recent conversation with Rob Houlihan, Network Services Manager, and Kent Halder, Communications Sales Manager. Christopher recently interviewed them on...

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Posted December 4, 2013 by dcollado

A year has passed since we covered SpringNet in Springfield, Missouri, and its remarkable impact on local businesses and economic development. We recently spoke with SpringNet Director, Todd Murren, and Network Architecture Manager, Todd Christell, to get an update on how the network is progressing.

Demand for SpringNet’s high-speed data services continues to grow steadily. Financial statements for City Utilities of Springfield show the network generated $16.4-million in operating revenue last year against costs of $13.2-million. Better yet, revenues have increased around 3% per year while cost increases are closer to 0.5%. The end result is close to $3 million in annual net income for SpringNet. And all of this comes from a network that only serves commercial and public sector clients because Missouri state law restricts municipal network provision to only “Internet service,” meaning SpringNet cannot offer triple-play packages to compete with incumbent providers.

One of the highlights of SpringNet’s economic development success has been the attraction and retention of travel giant Expedia. After a large national provider failed to deliver on negotiations with the company, SpringNet stepped in to make sure Expedia brought its call center to Springfield. That effort has paid off handsomely for SpringNet and the local community. Expedia now employs close to 900 in the area after announcing in July that it was hiring another 100 employees in Springfield.

Up next for SpringNet is an effort to leverage its fiber infrastructure to create even more jobs. Believing that future job growth will revolve around the advancements enabled by gigabit networks, SpringNet is working with the Mid-America Technology Alliance (MATA) to host a hackathon with partners in Kansas City to explore what is possible between gigabit cities.

As Murren and Christell tell it, someone in Springfield can now send data to Kansas City with a 5-millisecond delay. It’s like they are in same building despite being hundreds of miles apart. This capability spells opportunity for new ways of doing business and delivering...

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