Tag: "gigabit"

Posted July 30, 2012 by christopher

In the excitement around Google's unveiling of the $70 gigabit broadband connection in Kansas City, some may be wondering how it is that Google can offer a gigabit for moderately more than what most of us pay for far slower cable broadband connections.

On one side of the equation is the fact that big cable companies (Time Warner Cable, Comcast, etc.) have long been ripping off consumers by pricing their services far above cost -- something they can easily do because they face so little competition. But the more interesting side of the equation is how Google can make its gigabit price so low.

Recall that Chattanooga made major waves with its gigabit service, priced then at the rock-bottom rate of $350/month. A gigabit is not available in many communities and where it is available, the price is often over $10,000 per month. We published an in-depth case study of their approach a few months ago.

But, as Milo Medin -- the head of the Google Fiber project -- is fond of saying, "No one moves bits cheaper than Google." Google has built an incredible worldwide fiber optic network. Let's call this lessons 1 and 2.

Lesson 1: Google built its own network. It isn't leasing connections or services from big telecommunications companies. Building your own network gives you more control -- both of technology and pricing.

Lesson 2: Google uses fiber-optics. These connections are reliable and have the highest capacity of any communications medium. The homes in Kansas City are connected via fiber whereas Time Warner Cable, CenturyLink, and others continue to rely on last-generation technologies because they are delaying investment in modern technology to boost their profits.

EPB Installs Fiber Cables in Chattanooga

Others have already followed these lessons but are not able to offer their gig for such a low prices. To understand why, let's start with some basics. I'm hypothetically starting Anytown Fiber Net in my neighborhood and I want to offer a gig. Whenever any of my Anytown subscribers want to transfer files amongst themselves, the operating cost...

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Posted July 26, 2012 by christopher

Google Fiber is unveiled. And it sucks to be Time Warner Cable right now. But they already knew that.

Google is offering 3 packages in Kansas City - a gigabit Internet connection for $70/month, a TV + Gigabit Internet connection for $120/month, and a free Internet tier of 5/1Mbps (subject to a one time $300 connect cost). The first two packages also have the $300 connect fee but it is waived with a contract.

The details are available via DSL Reports and The Verge. There are several interesting enticements along with the connectivity.

Plans and pricing is here. I'm surprised at the number of television channels that are available on that package. Notable channels missing include Disney and ESPN, probably because ABC was trying to rake Google over the coals on pricing.

Neighborhoods will be competing to get enough presubscriptions to get connected (at $10 per potential subscriber). It will be interesting to see how this goes - the approach makes sense from a business perspective but could result in a patchwork of neighborhoods lacking access.

Google Fiber

In short, this will be interesting to watch. How will Time Warner Cable respond? How enthusiastic will ordinary people be? Google's marketing talent is considerably more advanced than that of the local governments and small companies (Sonic.net) that first blazed this trail. Speaking of which, I have not yet seen how other service providers will be able to use this network, if at all.

The free 5/1 connection is interesting. For a massive company like Google, providing hundreds or thousands of 5/1 connections essentially has zero cost. This is also true of Comcast and CenturyLink, which is why they are profitable on those $10/month low-income packages.

This is not a Google experiment. Those running this project are expected to earn a profit. How Google chooses to calculate that, we do not know.

Our biggest fear with this project is that we will see communities looking to Google to...

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Posted July 10, 2012 by christopher

Government Technology interviews some local officials in Chattanooga about its network - the nation's first network offering 1 gigabit connections throughout the entire community. The slowest Internet connection available, 30/30 Mbps, is available in bundles that rival Comcast and AT&T in price. But the Comcast and AT&T services are pathetic in comparison - particularly when it comes to customer service.

We published an extensive case study explaining how Chattanooga EPB built its network.

Posted June 15, 2012 by lgonzalez

We have been following the Gig.U initiative, the collaborative effort between 30+ U.S. leading research universities. Their mission is to quicken the deployment of high-speed networks to universities and their surrounding communities to improve innovation, research, collaboration, and economic development. This week, the University of Florida announced they will be working with Gainsville's GRUCom, and GigU to bring fiber to homes and businesses near the Gator campus.

The area, known as Innovation Square, is a 12-block area between the UF campus and downtown Gainesville. The initiative will offer connections to residences for an introductory price of $99 plus tax. Connections within the district will be as fast as 1 Gps while connections to users and websites outside the network will be 50 Mbps. Business rates will be determined on a case-by-case basis. While the gigabit connection may be too expensive for many in the area, the infrastructure will be in place when gigabit costs drop.

From the University of Florida News:

“Entrepreneurs and technology leaders work in a competitive world where big ideas and enormous amounts of information need to move quickly,” [UF President Bernie] Machen said. “This is just what’s needed to attract those types of people to the Innovation District. Having a high-bandwidth community near our campus creates an environment that will better serve the mission of educating our students and creating a hub of high-tech economic growth for Florida.”

GRUCom is the telecommunications division of Gainesville Regional Utilites, owned by the City of Gainesville. In addition to providing telecommunications services, the utility supplies electricity, natural gas, water and wastewater services to 93,000 retail customers in the area. The GRUCom network includes 375 miles of fiber in and around Gainesville and delivers Internet, data transport, colocation, cellular carrier and wireless, and public safety radio services.

UPDATE:

GRUCom informs us that the fiber build out will belong to GRU and the City.

Posted June 12, 2012 by christopher

For those waking up from a two week nap, the publicly owned FiberNet Monticello recently saw the private provider managing it step down, the City tell Bondholders that it would not make up the difference between revenues and debt payments, and us examining what the network has achieved.

On Monday, the Monticello City Council joined forces with Gigabit Squared a new organization with several experienced network operators on board that previously made news by noting it had $200 million to help build next-generation networks and would likely be working closely with Gig.U.

In a few months, they will take over managing FiberNet Monticello from HBC for a short period of time and may then continue with a longer contract.

One of the benefits of the public owning a network is that when the business plan does not work out as expected, the public still has a strong voice in what happens next. Monticello could have decided to give up on it, but we are glad to see it chose instead to try a new approach. If a private company had owned the network, it alone would have decided how to proceed and its competitors would undoubtedly pay a pretty penny to see it disappear.

Given the anti-competitive actions by incumbents (engaging in predatory pricing and frivolous lawsuits), FiberNet Monticello has to work harder to increase its revenues.

Put simply, they have two choices. 1) Expand. 2) Innovate with new, next-generation services.

From what we could tell, HBC was not particularly interested in either option in Monticello. HBC is a very accomplished triple play company (telephone, Internet access, and television) and does not appear focused on innovating new services. In fact, we have heard one of their likely future public partners saying that they would do triple play and nothing else for years.

Gigabit Squared...

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Posted May 18, 2012 by lgonzalez

Located in the northeast corner of the state of Tennessee, Morristown Utility Systems offers FiberNET to Morristown's 30,000 residents and businesses. MUSFiberNET is another community that decided to take control of its destiny and invest in a municipal broadband network.

And by offering 1 Gbps anywhere in the community, Morristown is in the ultra-elite category of broadband in America.

We featured Morristown in one of the Muni FTTH Snapshots way back in June of 2009. They were doing well at the time but this great news shows how Morristown has brought next-gen, affordable, and reliable capabilities to anyone who wants it.

MUS FiberNET was built in 2006 and maintains a list of reasons why their network is superior to competitors. To advertise their incredible high capacity network, they developed this great billboard:

morristown-gig-ad.jpg

Morristown's Gig announcement never received the attention given to Chattanooga or Google's roll-out in Kansas City, which is unfortunate.

For commercial users, the Gig runs $849.00 per month, a ridiculously inexpensive price point compared to what large carriers commonly charge for the service. Morristown Schools are also taking advantage of the network, including making full use of the gig service. Residential prices vary from 6 Mbps/4 Mbps, download and upload speeds, for $34.95 to 20 Mbps/10 Mbps for $74.95 and MUS FiberNET also offers a variety of triple-play bundles.

Like many other communities in Tennessee, Morristown has few choices for service from private providers. After promising the state legislature major investments in Tennessee in return for favorable legislation, AT&T decided to only served high end, dense neighborhoods, as we have seen just about everywhere else.

Communities that are satisfied with last generation connections and having no control over the networks on which they depend can make do with AT&T and cable companies. But those who want universal access to fast, affordable, and reliable services should consider building a community fiber network.

Posted May 17, 2012 by christopher

We continue to watch the Gig.U project with interest as some universities are teaming up with providers to deliver gigabit services to selected areas, generally around high tech campuses.

One of the first project announcements has come from Orono, Maine. The University of Maine and a private company called GWI are teaming up to bring real broadband to Main Street.

The gigabit announcement came on the heels of a major announcement from Time Warner Cable - they are increasing residential speeds in Maine from 8-10 Mbps (or from 15 to 20 Mbps for those speed demons) and doubling their upstream speeds from .5 to 1 Mbps (or from 1 to 2 Mbps for those living in the fast lane).

So Orono, which is talking about speeds of 50-1000 times faster, should have quite the advantage.

We last heard of GWI due to its involvement in the Three-Ring Binder project that brought middle mile connections throughout the state to start recovering from the long-standing underinvestment from Verizon (now FairPoint). We wrote about FairPoint's attempt to kill competition before it started.

Now GWI will be building a gigabit open access network in this community that will offer much faster speeds at much lower prices than incumbent operators do. It is certainly an improvement over the status quo in the short term, as noted by the Bangor Daily News.

“We will plant the first seed in fertile economic soil,” he said. Kittredge said the Orono and Old Town area, with the University of Maine at the center, is prime real estate for getting the high-speed service off the ground and considering whether it will work in larger markets such as Bangor or rural markets in northern and eastern Maine.

For area businesses and researchers inside and outside the...

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Posted April 6, 2012 by lgonzalez

LUS Fiber now offers its business subscribers the current ultimate in broadband speeds. An April 5th press release from LUS Fiber reports that business customers of the state's only community-owned ftth network now have access to 1 gig symmetrical internet connections.

The ability to offer such fast speeds in both directions is a big draw to business customers, boosting the potential for economic development. In the press release:

“Gigabit service from LUS Fiber is one of the most robust Internet offerings on the market today,” says Terry Huval, Director of Lafayette Utilities System and LUS Fiber. “We built this community network with a promise to the people of Lafayette that we will work hard to provide them with new opportunities through this unique, state-of-the-art fiber technology…and that’s just what we’ve done.”

We have reported extensively on events surrounding the development of, and contiued corporate attack on, the LUS Fiber system. The local Lafayette Pro Fiber Blog reporter, John, notes how this advancement is rare in the US because the LUS 1 gig service can be offered to all business customers, not just those considered part of a "business core."

John also provides an excellent analysis of how LUS Fiber uses a different customer service approach than traditional ISPs. While he reports on engineering details, he also dicusses a key policy difference between providing the best service and providing any service:

Oversubscription and "best effort" is the name of the game for almost all ISPs and the bandwidth available to the last mile customer is in practice limited: if all subscribers were to use their full bandwidth at once the available speed would drop to a small fraction of the promised bandwidth. LUS has always played that game a different way, minimizing oversubscription and ensuring that even during busy hours of the day the customer's full bandwidth is available. That's in marked contrast to what I used to experience on Cox when the kids in my neighborhood got off the bus.

Kids are a major factor in the development and growth of LUS Fiber. Long ago, City-Parish President Joey Durel and his team of innovative thinkers recognized the need for...

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Posted March 27, 2012 by christopher

Alcatel-Lucent, one of the key vendors behind the Chattanooga community fiber network, has produced a video highlighting life in a "smart" city.  

Posted March 19, 2012 by lgonzalez

A recent article by Chloe Morrison on Nooga.com, highlighted the inquiries and envy from all over the globe about Chattanooga's awesome community fiber network. According to Rick Barrett of the Journal Sentinel, Milwaukee is one of many admirers with wandering eyes that keep taking a peak at Tennessee. No wonder! The "Gig City" has set the gold standard for connectivity. Additionally, the city has cleverly capitalized marketing the opportunities to spread the word about their network and to attract more economic opportunities.

Collaboration is the popular theme that is associated with development. When looking back in Wisconsin, collaboration seems rare to find. We have reported extensively on AT&T's attempts to instigate discord, drag out legal proceedings, and fatally halt the possibility of community owned broadband in Wisconsin.  If the Badgers want to compete in the digital economy, as they claim they do, they will have to stop listening to the big cable and DSL companies:

Only a few Internet users, such as a hospital or a large company, would currently benefit from the full capabilities of a gigabit network that can move large amounts of data at incredible speeds. It's like buying a Jaguar when a Ford Focus would be perfectly adequate, said Andrew Petersen, spokesman for TDS Telecom in Madison. (from the Barrett article.)

We have all read this tired comparison before and it still seems silly from a technological perspective. Planning for the future is critical when investing in essential infrastructure. Technological advancement moves at a fast pace, rather than an adequate pace.

Consider this assage from the Nooga article and consider how many of the benefits of a next-generation networks TDS would actually care about:

“The benefits are far-reaching—everything from a significant boost to...

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