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BT Brings Free Wi-Fi To New Burlington Transit Center

Burlington Telecom is teaming with Green Mountain Transit to provide free high-speed Wi-Fi to commuters and GMT employees at the new transit center, reports Vermont Business magazine. The bus transit center opened on Oct. 13.

The magazine noted:

“A reliable high speed Wi-Fi connection on the Downtown Transit Center platform will improve the customer experience, allowing passengers to use their wait time more effectively as they work, connect with friends, or download an e-book to enjoy on the ride.”  

Burlington Telecom general manager Stephen Barraclough told Vermont Business:

 “The opening of the new Downtown Transit Center is a much needed development for the many who commute to and from Burlington daily, and provides an exciting opportunity to highlight Burlington’s powerful gigabit infrastructure as an accelerator for economic, educational and community benefit.” 

Burlington Telecom joins a growing list of U.S. communities that are making free high-speed Internet connectivity available at public transit stations and airports. 

Free Wi-Fi At The City Gateway

In April 2015, we noted that LUS Fiber began sharing its municipal Gigabit network with travelers at the Lafayette Regional Airport in Louisiana. Free Wi-Fi is available at the airport supported by LUS Fiber, allowing guests to check email, post to social media, and browse the Internet.


"We know that businesses choose to come to Lafayette for a variety of reasons and many have cited our 100% fiber-optic network as one of those reasons,” said City-Parish President Joey Durel. "As a gateway to Lafayette, we want visitors to experience the ultra high speeds of a Gigabit Internet connection, from the moment they arrive to the moment they leave."

The Locals Love It

In Burlington, the Keep BT Local! Cooperative started in 2012 with a goal of transforming the troubled muni into a telecommunications cooperative and is still active and raising capital to purchase the network. In the spring, the BT Advisory Board recommended that a permanent owner should have ties to the local community

For the time being, the city is leasing the network, which is under temporary ownership of Blue Water LLC, a company that purchased the network as part of a deal hatched with CitiBank. The financial giant had sued the city for $33 million after cover-ups from a past mayoral administration cast the network into financial chaos. That agreement requires the city to find a permanent owner for the network and finalize the sale by January 2019. If the city does not find a permanent buyer of their liking, Blue Water can choose the next owner; locals fear it may be a company like Comcast.

The new Wi-Fi will give commuters a chance to taste the high-quality Internet access that Burlington residents and businesses are trying to keep under local control. The network's ownership is uncertain, but the local initiative is doing all it can to keep it from becoming just another big, faceless, unresponsive ISP.

BT Advisory Board and Community Agree: Local Is Best

As Burlington, Vermont, searches for a buyer for Burlington Telecom, the local residents and business owners continue to remain engaged in the future of their beloved Fiber-to-the-Home (FTTH) network. Most recently, they made it clear that their first priority is finding a local company to own and operate the fiber network.

VT Digger reported that, according to a survey conducted by the BT Board of Advisors:

Several residents have said they would like to see Burlington Telecom sold to a locally owned co-operative and that their greatest concern is the utility being sold to one of its larger competitors such as Comcast, AT&T or FairPoint.

From the report:

Though the City is precluded by the terms of its settlement Agreement with Citibank from continuing to own the Asset, a carried equity interest is permitted. It is important that all ownership options be explored and considered in light of the legal requirements and the City’s goals for BT. However, the BTAB [Burlington Telecom Advisory Board] agrees with the vast majority of interested participants in this process that the sale of BT to one of its existing, national competitors would likely not be in the overall best interests of the City. 

At a recent meeting, David Provost, chair of the advisory board said, “The best option from our perspective is finding a buyer with ties to the local community that will allow the city to have a minority stake in Burlington Telecom."

A Troubled Past, An Uncertain Future

After years of cover-ups by the city's past leadership, CitiBank eventually sued Burlington for $33 million. The parties settled and, as part of the settlement, Burlington transferred ownership to Blue Water LLC, a company formed by Burlington businessman Trey Pecor. In exchange, Blue Water provided $6 million in bridge financing to allow the city to settle the lawsuit with Citibank. The city is still leasing the network temporarily but the ultimate goal is to find a partner to purchase the network. 

According to the terms of the settlement, Burlington can choose the new buyer but the sale must be finalized by January 2019. If not, Blue Water can choose the buyer and residents are worried it may end up being a company like Comcast, with no interest in the local community.

In December, as the BTAB wrapped up public meetings about the future of the network, VT Digger reported:

“We’ve heard very little to date about the $17 million,” Provost said, which is the amount of taxpayer money that was spent without authorization during Mayor Bob Kiss’ tenure to prop up Burlington Telecom. Provost said that’s come as a surprise, given the angry reaction from the public when that was revealed in 2009.

But at Wednesday’s meeting, participants weren’t evenly split on the issue. Most said they would like to see the city or residents retain some level of ownership in Burlington Telecom. One resident explained that, as a taxpayer, she would rather be able to use the asset than recoup the loss.

Residents Take Action

In late 2012, the Keep BT Local! Cooperative formed in an effort to maintain public ownership of the network. The co-op has been collecting equity and loan pledges with the long-term goal of obtaining approximately 4,000 residential and business membership pledges. The effort is ongoing and the group has said on their Facebook page that Members will be hearing more soon.

KeepBTLocal Working on Plan to Purchase BT

Burlingtonians love their municipal network. We have reported in the past that, prior to the sale of the network to Blue Water LLC, a group of locals organized to create the KeepBTLocal cooperative. Recently, the organization reaffirmed its commitment to purchase the network when it goes up for sale, a condition of the Blue Water LLC transaction.

A customer satisfaction survey in April revealed that BT customers are more than twice as satisfied with their provider as those obtaining service from competitors. The VTDigger reported survey results:

· 87% customer satisfaction with BT’s Customer Service;

· 24% of customers chose BT’s services after being recommended by a friend or family member; and

· General impression of BT by non-BT customers saw a 10% “positive” increase over their 2014 impression.

The survey also reported that customers with other providers were 40% satisfied with their service.

BT offers 150 Mbps for $55 per month and gigabit service for $85 per month or $70 per month with a 12 month contract. All speeds are symmetrical.

It has been a long road for BT after prior city leadership covered up years' worth of cost overruns creating serious financial difficulties for the community. Eventually, CitiBank filed suit to recover the $33 million Burlington owed. The two settled and Burlington eventually transferred ownership to Blue Water with the city still leasing. The ultimate goal for the city is to sell the network. Enter KeepBTLocal.

According to a June VTDigger article, the coop has been working with a former telecommunications industry executive now working as a consultant. They are developing business and acquisition plans to purchase the network when it goes up for sale within the next few years.

Andy Mortoll, Chair of the Board of KeepBTLocal told VTDigger:

“It’s just so important for so many of us in Burlington to keep Burlington Telecom a local, community-owned asset,” Montroll said. “If the city is going to sell it, we want to be the ones to acquire it on behalf of the residents.”

Burlington Sells Burlington Telecom, Continues to Operate the Network

In November, Burlington's City Council approved the much anticipated settlement with Citibank. Burlington Telecom, a nearly citywide gigabit FTTH network owned by the city, was run into the ground by a previous mayor. That Mayor's Administration hid major cost overruns from the public for years, resulting in a challenging situation for the community. In the the world of municipal broadband, this is a significant anomaly.

The City found itself owing CitiBank some $33 million with no clear path on how to pay it. After years of arguing in court, the situation is largely resolved. Early in 2014, Citibank and Burlington reached a settlement [PDF] in which the the city would pay $10.5 million and a share of BT's future value in exchange for Citibank to drop its $33 million lawsuit. The obligation will include funds contributed by the city's codefendant, McNeil, Leddy & Sheahan P.C. law firm.

BT revenues, net cash flow, and the city's insurance carrier will contribute to the city's obligation, but the lion's share will be paid for with bridge financing from a local source. Trey Pecor, a Burlington business owner, has secured funding and created Blue Water LLC. The city will transfer ownership of the network to Blue Water in exchange for $6 million and will continue to lease the network from Blue Water at about $558,500 per year for a maximum period of five years. The goal is to find a partner to purchase the network. At that time, Blue Water and the city will divide any proceeds from the sale. 

As part of the agreement, the City Council and the Vermont Public Service Board (PSB) needed to approve the terms. The PSB is the state entity tasked with regulating utility rates and related financial matters in Vermont. On November 3rd, the PSB approved the transaction unanimously [PDF of the Order].

A Vermont Digger article reported that several organizations, including the Center for Media and Democracy, the Regional Educational Television Network and Vermont Community Access Media, requested a six month public engagement process before the deal be approved. The groups, known as Burlington Access Management Organizations (BAMOs) were concerned that a distant corporate owner that may purchase network, will not be community-minded in its decisions. The BAMOs also requested that three to five people with experience in telecom, alternative corporate structures, and public engagement, be added to the Advisory Board. From the VTDigger article:

The Public Service Board did not agree to the request. The board said it would be premature to impose conditions on a prospective sale, and that any future owner will be expected to comply with the same public access obligations the city must meet now.

“While the conditions requested by BAMOs may provide a useful mechanism to explore issues in connection with a prospective future sale of BT’s Assets, the Board declines to impose such conditions,” the PSB wrote.

Unfortunately, the PSB missed the fundamental point - the required public access obligations are quite small. Burlington Telecom, like most municipal fiber networks, went above and beyond the bare minimum required by law. The only way to ensure Burlington continues providing great customer service, high quality connections, and additional services to the community is by making it sure it is accountable to the community, not distant shareholders.

We cannot help but be disappointed at the continued pain caused by the failure of Mayor Kiss's administration to be honest with the people of Burlington - a reminder of how important transparency is for local governments.

We strongly support the efforts of local groups to ensure that when the network is next sold, it is to a locally rooted entity that will ensure the high level of service BT has delivered will continue.

The PSB did grant the city's requested reprieve from a condition that the network connect every address in Burlington. There are still approximately 3,250 addresses that BT does not reach, often in areas with underground utilities or condos where the owner is not cooperative. In order to make the system more enticing to potential buyers, the PSB removed the obligation from the utility's certificate of public good.

On November 17th, the City Council approved the settlement along with bridge financing documents, which will allow the process to move forward. The Council also decided to expand the BTAB and approved operating guidelines. WPTZ reported that there were local residents attending the council meeting who spoke out against the sale, but the Council voted to approve unanimously. From WPTZ:

"Given the circumstances that we were faced with over the past five years, this settlement is the best solution, the best possible outcome from our saga with Burlington Telecom," said Karen Paul, a Burlington city council member.

Local coverage on the City Council settlemet approval from WPTZ:

See video

Chris Visits Burlington to Talk About Local Telecom Challenges

Burlington Telecom customers love their local muni. Throughout the community's political, legal, and financial challenges, residents and businesses have rallied behind the ability to control their access locally. As part of their efforts to educate the community, Code for BTV and Keep BT Local brought Chris to town to discuss community ownership. The video of his presentation is now available online at Burlington's Town Meeting Television.

Chris discussed a variety of community ownership and said of Burlington:

"When it comes down to getting community support to raising capital and understanding the value of a cooperative, Burlington's about the best place in the country to be trying to do that."

Keep BT Local began officially organizing in late 2012. Their goal is to transform the municipal network into a cooperative structure on order to protect local interest in the service. The gigabit network has won awards, partnered with local nonprofits to improve digital inclusion, and offered local services such as computer repair, setting it apart from the distant corporate providers with no interest in local communities.

No wonder Burlingtonians want to keep their network! This is an informative conversation that touches on a variety of topics including how to fire up potential cooperative members, strategies to entice community anchors, and promoting the unique characteristics of a local network.

The video runs about one hour and twenty minutes.


Chris Mitchell In Burlington, Vermont on September 19th

Members of the Burlington community are hosting a luncheon on Friday, September 19th, to discuss ways to help keep BT local. Chris, as one of the leading experts on municipal broadband, will be leading the discussion. We have followed BurlingtonTelecom's challenges and victories since 2008.

The event is titled "How Do We Keep Burlington Telecom Local?" and will be at the CCTV Center for Media & Democracy in Burlington. From the announcement:

Many Burlington residents and activists are concerned about the City of Burlington’s plans to sell Burlington Telecom to a private entity by 2017. While the City is committed to BT as a driver for economic and community development, it currently has no specific plans to retain a meaningful ownership stake in the new entity. 

The event is part of a series of community talks aimed at maintaining public input as the City prepares to move forward. 

A free discussion will begin at 11 a.m.; it will be followed by lunch for $15. You can now register online. For those who want to learn more about the network and keep up on the latest developments, CCTV of Vermont has put together a resource page detailing upcoming steps with news coverage, video, and court documents. 

Burlington's Civic Cloud Collaborative Wins Knight Foundation Award

The John S. and James L. Knight Foundation has awarded a Knight Prototype Fund grant to the Civic Cloud Collaborative of Burlington, Vermont.

The Civic Cloud Collaborative is a group of eight organizations using Burlington's gigabit network to create civic and public spaces. The group describes the Civic Cloud project on their website:

The Civic Cloud will be available for the community to use as a platform for public, non-commercial Internet applications and digital creative works. Several applications will be deployed during an initial prototyping phase of the Civic Cloud. High-definition live streaming will be provided for community media outlets to webcast live public meetings and cultural events. WordPress websites will be hosted for several Vermont non-profits including rescue squads, food shelves, job banks and historical societies. A collection of volunteer-developed applications and a state-of-the-art website deployed to the Civic Cloud will help Big Heavy World preserve and promote Vermont-made music. Lakecraft, an educational, multi-user game aimed at youth and adults that gamifies the Lake Champlain Basin, will also be one of the first applications to run on the Civic Cloud.

Vermont Public Radio also reported on the award. From the article:

“We’re interested in it being a non-commercial space on the Internet,” said Bradley Holt, a Burlington-based developer who heads CodeForBTV, the local chapter of Code For America, an organization for public service software developers.

The cloud service, Holt said, will provide hosting capacity for local community organizations seeking to use the Internet to advance the public interest.

For more, check out the press release from Code for BTV, one of the collaborative members.

Video: Burlington Telecom Coop Effort Moving Ahead

In December, 2012, a group of local residents decided to engage in an effort to turn beleaguered Burlington Telecom into a coop. The effort has advanced and the organization, Keep BT Local, continues to gain pledges. To date, the organization has collected pledges in the amount of $108,000 for equity and $156,000 in loan pledges.

Keep BT Local is ultimately shooting for membership pledges from about 4,000 residential and business customers. The goal has been to collect $250,000 worth of pledges to move forward with incorporation this month.

Local Chanel 17 carried a discussion on the effort to get more info on the business plan. Alan Matson and Don Schramm, who head up the Steering Committee talked with host, Matt Kelly, about the venture and took calls from viewers.

In addition to a discussion about the the heart of what is "local," the group discussed the business plan and where challenges may arise.

The discussion is about 30 minutes long.

Coop Status for Burlington Telecom? Maybe.....

Burlington Telecom may be headed for some changes. Due to the mismanagement of the prior Burlington Mayor Administration, the network took on an unsustainable amount of debt and damaged its reputation. Some of the plans to make the network sustainable again involve privatizing it. Unfortunately, as we have seen with public power privatizations, such an action typically results in worse services and higher prices due to the loss of local control.

Operating under the name Keep Our Telecom Local, a group of local residents and business leaders want to ensure BT remains owned by the community by turning it into a cooperative. At a December 13 public meeting, the group of about 50 volunteers gathered and talked strategy. According to a Burlington Free Press article on the meeting, attendees broke into smaller groups to discuss specific issues and plans.

The next step will be efforts to increase publicity for the movement and the creation of a business plan. Currently, a committee is forming to determine the best way to file for a Vermont Certificate of Public Good. Another committee is looking into formation of a board of directors.

Most municipal networks do not have to contend with the problems that have plagued Burlington Telecom. But even with all of the problems faced by this publicly owned network, the community still sees great value in rescuing it rather than abandoning it. The Burlington community appreciates the incredible value of keeping their broadband resource local. From the article:

Don Schramm, one of the organizers of tentatively named Green Mountain Broadband Fiber, said it makes sense to pursue a Third Way.

“Keeping our telecom locally owned means that the jobs stay here, the money spent stays here, the profit stays here — and most importantly, the control stays here,” Schramm said. “We will have a broadband cooperative responsible to our community needs, not the profit wants of out-of-state owners.”

We applaud the community for recognizing the value of this great asset, the importance of local control, and their efforts to keep BT local.

Burlington Telecom Announces a Gig and Computer Repair Services

We have covered happenings at Burlington Telecom, both positive and negative, extensively. We are glad to report some interesting new developments of this Vermont municipal network. BT is rolling out faster connections and using its competitive advantage in customer service to offer some computer repair services. Joel Banner Baird at the Burlington Free Press reported:

Without cash reserves and promotional enticements available to BT’s commercial competitors, the fiber-optic Internet/phone/cable provider will focus on its strength in customer service, said interim General Manager Stephen Barraclough.

As our readers know, BT is in the midst of a pending lawsuit with Citibank, wherein the financial giant says the city still owes it $33.5 million. The network's troubles, including misuse of public funds by the previous Mayor, have hurt its ability to generate income and Burlington's credit rating has suffered.

While fixing PCs certainly won't pay mounting legal fees, it will make life easier for customers. Details include a $25 diagnostic fee and a rate of $45 per hour plus materials. More about the service is available on the PDF of the official anouncement.

A more recent announcement puts Burlington among the few communities with citywide access to a gig. Burlington Telecom is in the midst of upgrades and will be offering 1 Gbps service and 40 Mbps service starting on December 1, 2012. Both options are symmetrical.

40 Mbps - $99.99 per month

1 Gbps - $149.99 per month when committing for one year; or $199.99 per month with a month-to-month arrangement


View a PDF of the official announcement flyer.

A gig for $150 to residential connections is one of the best deals we have seen in the nation and is far superior to what FairPoint DSL or Comcast Cable offer in town.