Tag: "open access"

Posted June 29, 2011 by Christopher Mitchell

Last month, we were excited to write about the open access network in Cortez, Colorado. We can update the story with information from this article:

[B]usiness participation on Cortez's own municipal fiber-optic network has exceeded expectations - with 76 drops purchased to connect 98 Cortez businesses to the network.

Rick Smith, director of the city's General Services Department, said crews are working to get the drops connected and to extend conduit to the west side of Broadway Street.

"(The demand) exceeded my expectations," he said. "It's a good problem to have. ... I think the business owners see the value in being connected to the fiber for the long-term future. I think they see it as a way to stay competitive and enhance their business."

These businesses could start using the network in July but no service provider has yet committed to providing services. When the network is ready, there is no doubt at least one will take advantage of the community network to offer next-generation services. Over time, as more subscribers are available, more service providers will want to compete for their attention.

"It's going to give us an advantage that other communities don't have," Smith said. "You've got communities starting to take notice of what Cortez is doing, and it's exciting."

Businesses interested in joining the network can purchase "drops" to physically connect to the fiber-optic line. Drops currently cost a one-time fee of $150 for a small business or home and $175 for a medium business. Other rates are available for large businesses and multi-unit buildings.

But drops are only available in a limited area of town along Main Street currently. As the network generates more revenues, it will expand to other areas of the community.

Posted June 26, 2011 by Christopher Mitchell

Like many Washington Public Utility Districts, Pend Orielle, has connect small portions of its electric territory with an open access fiber-to-the-home. But these projects have been difficult to finance in remote (and often mountainous) areas. Pend Oreille previously built a pilot project but is now expanding its network with a stimulus grant from the feds.

The work has begun and is expected to end by November 30, this year. From a previous press release:

The project will make highspeed Internet available to approximately 3,200 households, 360 business, and 24 community anchor institutions such as schools, libraries, and health care facilities. Residents and business owners will have the opportunity to subscribe to a variety of highspeed Internet services through local internet service providers.

Posted June 17, 2011 by Christopher Mitchell

The Daily Yonder recently ran a cleverly titled article by Craig Settles, "Wyoming Town Creates Broadband Bonanza." We have previously written about Powell and its unique public-private partnership approach to an open access muni FTTH network.

Craig offers some more details, including some of the planning:

The planning team went a step further. Broadband feasibility studies typical include asking constituents about their level of interest in Internet services. Powell’s team secured firm commitments from institutions such as schools and hospitals that would not only subscribe to the network but entice their customers to subscribe, too. They contacted businesses about moving or expanding operations to Powell.

With agreements and letters of intent in hand, Powell was able to give Tri-County Telecom (TCT) more credible revenue predictions. “We presented our data and potential institutional subscribers,” states Bray. “TCT then adjusted for what their real costs were and described how the buildout was going to look, what the real breakeven was (and based on what assumptions), when certain goals had to be met and how long it will take to reach certain milestones over 20 years.” Bray calls all of the TCT forecasts, “conservative.”

He also notes that Powellink broke even at the end of 2010, an impressively short period of time.

Posted June 12, 2011 by Christopher Mitchell

CIO Magazine is the third organization in less than a year to recognize the importance of Ontario County's broadband investment in itself. CIO received a "CIO 100" award to go with recognition from Computerworld and the John F Kennedy School of Government at Harvard.

Axcess Ontario is an open access middle mile network built without any federal loans or grants. They wanted to invest in themselves and have succeeded. The network serves multiple private sector telecom firms, including Verizon Wireless - a fact that should be recognized in an age when some would have us believe the public sector should never be involved in this essential infrastructure.

Posted June 10, 2011 by Christopher Mitchell

I wrote this short case study of the Powell network in Wyoming for our Breaking the Broadband Monopoly report but it never got published on this site. As we noted a year ago, Powell bought its system back from investors last year.

The city of Powell started talking about a fiber network in 1996 but did not make progress for almost ten years. They developed a plan to build a FTTH network and lease it to an outside operator. The incumbents declined to partner with the City and later spent considerable effort to derail the City’s efforts. However, the City found a local cooperative, TriCounty Telephone (TCT), willing to offer triple-play services on the City’s network.

Financing the deal took more time than expected because the City was unwilling to commit public money directly or even as a backstop if the network fell behind on debt payments. While the City worked on the financing, cable incumbent Bresnan and telephone incumbent Qwest tried to convince the state legislature to abolish Powell’s authority in this arena. The legislature did create new obstacles for cities building such systems but Powell was grandfathered in.

In late 2007, the City agreed to an arrangement where TCT would exclusively lease the network and make up shortfalls in debt payments if required for a period of six years. After that period, the network would be open to other service providers as well and it would be the City’s responsibility to cover any shortfalls if needed. If the City chose not to appropriate in that situation, the investors could take the network. Estimates suggested a 33% take rate would allow the network to break even by the fifth year but most expected a higher take rate.

In early 2008, Powell completed the $6.5 million bond financing. As is more common in small builds, they immediately connected a line to the home rather than waiting for the subscriber to sign up. They trenched a fiber to the side of every house regardless of whether they were taking service, putting the fiber in a box on the side of the house. If the occupant signs up, a crew only has to install electronics rather than bringing a line down from the pole. This approach increases the capital cost slightly but can significantly decrease operating expenses as residents subscribe.

...

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Posted May 30, 2011 by Christopher Mitchell

nDanville, the open access fiber-optic network operated by the City's public power company, has been quietly succeeding in southern Virginia. This network has already connected half of the communities health care facilities, allowing them to improve medical care with 100Mbps and gigabit circuits at affordable prices.

The medical network connects Danville Regional Medical Center and about half of the area’s medical facilities to nDanville, a fiber optic network established by the city. The high performance fiber allows real-time access to patient medical records and allows for the exchange of CT and MRI scans instantly.

Another article notes praise for the city's efforts:

"It enables us to better serve our patients by having their information available across multiple sites," Deaton [CEO of Danville Regional Medical Center] said. "We will continue to support the city's efforts in linking our medical community together, and I want to commend the city for the success of this network and making healthcare a top priority."

The Intelligent Community Forum brought the above success to my attention in awarding Danville a recipient of its 2011 Founders Awards. (Chattanooga is in the running for Intelligent Community of year and really, how could it possibly lose?) But ICF details more impressive details from nDanville:

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On average, fiber connections for these facilities provide twice the bandwidth of the previous connection but at a 30% savings. More than 90% of the medical facilities (approximately 125 locations) are to be connected by December  2011, said Jason Grey, the Broadband Network Manager of Danville Utilities, who led Danville’s charge to become a recognized intelligent community by ICF.

ICF further noted that the nDanville Network provides a crucial link between the Danville Diagnostic and Imaging Center and the Danville Regional Hospital. This high capacity connection allows the two facilities to exchange CT and MRI scans...

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Posted May 24, 2011 by Christopher Mitchell

New Hampshire law makes it more difficult for communities to build broadband networks by only allowing bonds to finance broadband networks in "areas not served by an existing broadband carrier or provider." (See Title III, Chapter 33 of NH law.)

Such a requirement means that local governments could only build networks in areas with absolutely no service providers. Seeing as how most communities have at least one pocket with access to the Internet one way or another, communities are prevented from bonding for the essential infrastructure they need.

The only areas totally without a single service provider could probably only be served by a network that also serves an area where some service providers already operate, as those are the areas capable of generating enough revenue to balance rural areas with less revenue potential.

Because this law significantly retards the ability of communities to encourage economic development, we have seen previous attempts to update it (one of which we covered last year). This year, HB 389 offered a compromise to existing service providers. Nonetheless, it was also killed.

HB 389 would have allowed local governments to bond for broadband infrastructure but not allowed municipalities to provide retail services. Communities would be able to build open access networks but not allowed to offer services directly to subscribers.

Though we ardently defend the right of communities to build the networks they need using the business model they choose, this bill would have been an improvement for communities in New Hampshire.

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One organization that certainly would have benefited from this law's passage would have been FastRoads, an open access network that has moved forward with federal broadband stimulus funding.

The network is currently being designed and will start connecting communities next year.

The...

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Posted May 19, 2011 by Christopher Mitchell

On the heels of our story announcing a new open access community fiber project in Idaho, we have learned of a similar project in Cortez, Colorado. Cortez is the county seat of Montezuma County in the extreme southwest of the state and has approximately 8,000 residents. Much of Colorado has long suffered from Qwest's refusal to invest in modern networks -- though a more charitable take on it would be to say Qwest's inability because it simply does not have the capacity to invest in the kind of networks communities now need to take advantage of modern communications technologies. In the late 90's, Qwest's services in Cortez were served by microwave links incapable of meeting local needs and Qwest refused to invest in a better connection due to an insufficient business case. In the words of Rick Smith, Director of General Services for Cortez (and in charge of the network), the city then decided "to take its destiny in its own hands." They began building their own network. The initial phase was an I-Net, built with the City's capital funds, to connect schools and other public facilities. They were able to later expand that under Colorado's Beanpole Project, a program that sought to aggregate community traffic in an attempt to lure more private sector investment in networks. Along the way, they began leasing some dark fiber to private companies that needed better telecommunications options. When Qwest pushed through a bill in 2005 to limit local authority to build networks (click on Colorado on the Community Broadband Preemption Map), Cortez was grandfathered, leaving it with more authority to invest in this essential infrastructure than most communities. A press release details the financing for this latest phase:

Southwest Colorado Council of Governments secured the initial funding for this project which came from a state grant of one million dollars from oil, gas and coal leasing rights. The City of Cortez provided the 25% match for the grant funds. The funds are being funneled back into developing the economy and growth of Cortez and the surrounding area by offering potential large employers or data center providers the bandwidth and...

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Posted May 17, 2011 by Christopher Mitchell

A small Idaho town near Idaho Falls in the eastern part of the state, Ammon, is creating a new approach for a small open access fiber-optic network. When the vision is fully realized, all businesses and residents will have affordable, fast, and reliable access to the Internet and other telecommunications services via a multitude of independent service providers.

The town has adopted a new ordinance spelling out its vision and began building the backbone of the network. The purpose is well written and could serve as a model for others, excerpted here:

To protect the public right-of-way by improving both the management and regulation of competing demands through the elimination of duplicate fiber optic facilities within the public right-of-way.

To reduce the cost of maintaining the sidewalk, pavement and public facilities located within the public right-of-way by minimizing the number of pavement cuts and dislocation of other public facilities necessitated by the construction or installation of fiber optic facilities.

To foster competition among retail broadband service providers by providing open Access to the City Fiber Optic System.

Ammon had previously applied for broadband stimulus funds but was not awarded a grant or loan. Undaunted, they continued to examine how they can build the network their community needs to attract economic development and maintain a high qualify of life. An article in the Boise Weekly profiled the network and the man behind it:

Bruce Patterson is the one-man IT department for Ammon, a small town of 13,000 near Idaho Falls. He is fed up with companies overlooking the town when they discover the cost of Internet is prohibitive.

"The City of Ammon wants to be the road, not the traffic," Patterson said. "Nondiscrimination is what we believe is the right thing. We wanna be completely open to every consumer and provider."

As we see time and time again, this community has Internet access from at least one provider, but it does not meet the needs of the...

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Posted May 11, 2011 by Christopher Mitchell

We are hearing exciting news from western Massachusetts -- at least 17 towns have already held the necessary meetings and votes to join the Wired West cooperative that will build an open access, universal, FTTH broadband network in each of the member towns. This is an exciting project in a region largely left behind by cable and phone companies.

Back in January, we described the steps necessary to form a "Municipal Light Plant," in each community but a recent update from Wired West reminds us about the specifics:

Town participation in the WiredWest municipal telecommunications cooperative requires passing two consecutive town votes at separate meetings to establish Municipal Light Plant (MLP) legislation in the town. The MLP legislation was created in the Commonwealth over 100 years ago to enable towns to generate their own electricity. In 1996, the ability for towns to offer telecommunications services was added to the MLP statute. WiredWest charter towns researched various governance options and determined this was the best choice for enabling towns to offer telecommunications services, work together cooperatively and issue municipal debt to capitalize the network.

Towns have been passing the 2/3 votes with overwhelming approval, as in the town of Florida, with a 30-1 vote.

Wired West is maintaining an impressive map of the status of each town along the path. Clicking on a town brings up more information about that town. Kudos to them for making a great map that is easy to use and conveys a lot of information.

The Berkshire Eagle recently published an op-ed discussing the importance of economic development in the area:

Because many Berkshirites work, either at home or in an office, in towns without high-speed Internet service, making such connections widely available is vital to economic development in the county. I’m a volunteer with WiredWest, a cooperative effort of 47 towns in...

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