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Content tagged with "rural"
Spencer, Iowa, Keeps Building
This month, Spencer Municipal Utilities (SMU) will continue to expand the town’s fiber network. The steady incremental build will bring better Internet access to residents, business, and municipal facilities in the northwest Iowa town.
Incremental Approach
The Spencer Daily Reporter wrote about how SMU is connecting more residents with Fiber-to-the-Home (FTTH) one step at a time. The municipal utility broke the project into four phases.
Phases I and II included 2,700 homes and businesses. Phase III, which begins this month, will impact more than 1,100 homes and businesses. Phase IV will finish extending FTTH service to the rest of the city.
The project will replace the existing telecommunications infrastructure installed in the late 1990s. Curtis Dean of the Iowa Association of Municipal Utilities described the network's history in our Community Broadband Bits podcast from 2012.
Evolving Needs, Changing Technology
Spencer Municipal Utilities marketing and community relations manager, Amanda Gloyd, said to the Spencer Daily Reporter:
"Just like internet service has evolved from dial up to digital service lines and cable modem, fiber will give customers the next level of service to continue to improve the way they live, work, and play and we are continuing to build out this service throughout the community of Spencer."
Spencer, like many other small towns, chose to invest in Internet network infrastructure so residents and businesses in this rural area could get fast, affordable, reliable services. Subscribers appreciate the excellent customer service that comes with their local, publicly owned network.
Before We Leave
Expansion Ahead For ECFiber
The East Central Vermont Community Fiber-Optic Network (ECFiber), a 235-mile Fiber-to-the-Home (FTTH) network that currently connects over 1,200 customers across 24 small towns in east central Vermont, is doing well. It’s doing so well, in fact, that a capital investment group will commit $9 million in long-term financing to the network, a loan that will allow ECFiber to expand and spend down some of its existing debt.
ECFiber announced last month, that it will use about half of the funds to activate 110 miles of existing fiber this year and add 250 more miles of fiber in 2017 bringing the network to approximately 600 miles. Network officials will use the remaining funds to pay down $7 million in debt; the move will allow ECFiber to save money through reduced interest rates and spread out loan payments over a longer period of time.
Stability Begets New Financing, New Possibilities
The news of this new injection of debt financing comes several years after the original plan to build a larger 1,900-mile, $90 million FTTH network ultimately didn’t materialize in the aftermath of the financial crisis of 2008. When ECFiber failed to secure debt financing for that larger plan, the network scaled back its ambitions, turning to direct investments and raising $7 million from 479 local investors to construct the current network.
This self-financing strategy (for more, listen to our Chris interview Carole Monroe, former General Manager in Community Broadband Bits podcast #177) made ECFiber a reality. This new financing will allow the network to expand at a faster pace and allows ECFiber to significantly stretch its footprint. In the past, the crowd funding approach allowed for targeted, smaller expansions.
Grass Will Be Greener With FairlawnGig In Ohio
Fairlawn, Ohio, a quaint little city in Northern Ohio, it is about to get a big Gig – lightning fast Internet speeds of up to one Gigabit (1000 Megabits) per second (Gbps) – for $75 a month. The city has considered the prospect of such a network since last year, and now the community is moving forward.
On April 4th, Fairlawn City Council unanimously approved several ordinances to build a Fiber-to-the-Home network (FTTH) called “FairlawnGig.” For financing, the network will use revenue bonds in an agreement with the Development Finance Authority of Summit County.
A New FTTH Muni
In November 2015, Fairlawn hired a consultant and envisioned a public-private partnership for the FTTH plan of FairlawnGig. Now, however, these ordinances ensure that the $10 million network that will begin construction in May 2016 will in fact be a municipal network. The ordinances enable the city to enter into a contract with a firm to design and construct the network in the way that best meets the community’s needs.
Currently, the prices are established as:
- Residential 1 Gbps – $75
- Residential 100 Mbps - $55
- Residential 30 Mbps - $30
All speeds will be symmetrical, so upload and download speeds are equally fast. The network will also offer phone service for an extra $25 a month. Businesses have similar speeds for prices between $90 and $500.
FairlawnGig will serve not only the 7,500 residents of Fairlawn, but it will also provide connectivity to the Akron-Fairlawn-Bath Joint Economic Development District. Ohio communities use these sort of districts to share infrastructure improvement projects.
From Vision to Reality
After thanking the City Council for passing the ordinances that have enabled the FTTH project, Fairlawn Mayor William J. Roth, Jr. further reiterated the purpose of the network:
WiredWest: a Cooperative of Municipalities Forms to Build a Fiber Optic Network
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In 2010, communities in rural western Massachusetts began a group that would evolve into the WiredWest Cooperative. Over the past six years, the group, formed to bring better last-mile connectivity to the unserved and underserved areas of the state, has faced a number of challenges. Most recently, disagreements with the Massachusetts Broadband Institute (MBI), the state agency tasked with distributing funds for last-mile connectivity, have threatened WiredWest's regional cooperative model.
In a new report released by the Berkman Center, authors David Talbot, Waide Warner, and Susan Crawford share the story of these communities' attempt to band together to establish a fiber-optic network.
In WiredWest: a Cooperative of Municipalities Forms to Build A Fiber Optic Network, we learn not only how this region came together, but how they developed their business plan and procured funding, how they anticipate the network to affect affordability, and the ways they have adjusted the plan as circumstances required. The authors also take the time to share some history of cooperatives, and address how the cooperative model - used in the past for electricity and telephone - can benefit the communities in rural western Massachusetts.
Key Findings from the report:
A New Cooperative Model for Fiber to the Farm - Community Broadband Bits Podcast Episode 198
When we launched this podcast in 2012, we kicked it off with an interview from Minnesota's farm country, Sibley County. We were excited at their passion for making sure every farm was connected with high quality Internet access. After the project took a turn and became a brand new cooperative, we interviewed them again in 2014 for episode 99, but they hadn't finished financing. They broke ground 2015 and today we discuss the model and the new Institute for Local Self-Reliance (ILSR) case study that details how they built it. City of Winthrop Economic Development Authority Director Mark Erickson and Renville-area farmer Jake Rieke are both on the board of RS Fiber Cooperative and they join us to explain how their model works.
We at ILSR believe this model could work in much of rural America, in any community that can summon a fraction of the passion of the citizens from Sibley and Renville counties. Having watched this project for all the years it was being developed, I cannot express how impressed I am with their dedication. And because they own it, I'm thrilled to know that no one can take it away from them.
This show is 35 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.
Transcript below.
We want your feedback and suggestions for the show-please e-mail us or leave a comment below.
Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.
Thanks to Kathleen Martin for the music, licensed using Creative Commons. The song is "Player vs. Player."
RS Fiber: Fertile Fields for New Rural Internet Cooperative
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A new trend is emerging in rural communities throughout the United States: Fiber-to-the-Farm. Tired of waiting for high-quality Internet access from big companies, farmers are building it themselves.
Communities in and around Minnesota’s rural Sibley County are going from worst to best after building a wireless and fiber-optic cooperative. While federal programs throw billions of dollars to deliver last year’s Internet speeds, local programs are building the network of the future.
In “RS Fiber: Fertile Fields for New Rural Internet Cooperative,” the Institute for Local Self-Reliance (ILSR) and Next Century Cities documents a groundbreaking new model that’s sprung up in South Central Minnesota that can be replicated all over the nation, in the thousands of cities and counties that have been refused service by big cable and telecom corporations.
Tired of Waiting: Farmers Build Their Own Fiber-Optic Co-op
21st century farms require 21st century connectivity. Denied access by telephone and cable companies, they created a new model.
In the report you’ll meet:
- Mark Erickson, of the city of Winthrop. Erickson is the local champion that has breathed life into RS Fiber. Without the project, the city of Gaylord would have not attracted the forthcoming medical school. “We have that opportunity because of the Fiber-to-the-Home network. Without it, no medical school.”
- Linda Kramer, of Renville County. Kramer’s family farm relies on the Internet to upload soybean and wheat reports to business partners. DSL connections are simply not fast enough to handle the massive amount of data agricultural businesses need in order to stay competitive with the Farming Industrial Complex that is the reality of the 21st Century.
- Jacob Rieke, a 5th generation family farmer. Rieke’s motivation for backing the project was his pre-school aged daughters. Not wanting to put them at a disadvantage to their peers in other cities, he considered moving to a different location in order to have access to Internet.
From the technologies to the financing, rural communities can solve their problems with local investments.
Alaska Co-Op Upgrading to Fiber
It isn't very often we have the chance to share stories from the "Last Frontier," but a cooperative in the Valdez area is making news with a planned upgrade to fiber this summer.
DSL to Fiber
According to the Valdez Star, Copper Valley Telecom (CVT) subscribers will be enjoying a switch from old copper DSL Internet access to Fiber-to-the-Home (FTTH) when CVT upgrades its system. The new technology will also improve telephone service.
"Once complete, all voice and data will be delivered to the home over fiber optic line and the new electronic interface," CVT said. "Modems will also be replaced."
"There is no cost to the customer for the fiber installation," [CEO Dave] Dengel stated. "Customers will not be asked to pay for the new fiber or the electronics required for voice and Internet access."
Increasing Role of Co-Ops
CVT has served co-op members for more than 50 years with telephone service in the Valdez area and also serves the Copper River Valley and Cordova. Co-ops are bringing high-quality Internet access to rural areas across the U.S. and we expect to see more upgrades as existing co-ops switch to fiber. Co-ops know that their future depends on the future of their members because they are members, too.
As CVT Chief Executive Officer, Dave Dengel, put it, "By upgrading our network from copper to fiber, Copper Valley Telecom is preparing the community for the future."
Sun Prairie Utilities' Pilot Project Shows Way to Better Connectivity
Welcome back to Sun Prairie, Wisconsin. This town has brought to light the shocking stories of slack service from incumbent providers, the complicated decisions of community representatives, and the hopeful beginning of a fiber-to-the-home (FTTH) network.
The City Council has just approved $16,000 to hire an engineering consultant for the estimated $27-35 million citywide plan.
In the Pilot Project, So Much Demand!
In July 2015, City Council approved the $624,000 plan for the pilot project, but several factors brought the actual cost up to about $653,000. The pilot project area included the neighborhood Smith's Crossing, the Main Street Corridor, and the TIF District 9 area.
Sun Prairie Utilities first slated the project for completion in early December, but that underwent several delays. For instance, an over-booked contractor started on the project a month later than expected. Meanwhile, rocky soil conditions and high-demand slowed the pace of construction while raising costs. The Sun Prairie Utilities Manager Rick Wicklund will present the final costs for the pilot project this month.
The original budget had assumed a 30 percent take-rate that would see a positive cash flow in three years. In actuality, 54 percent of households in the pilot project area are requesting the services.
Forty-three percent have requested the 100 Megabits per second (Mbps) for $49.98 each month while 11 percent want the higher-speed service of 250 Mbps for $69.98 each month. The capital expenditure of these unexpected last mile connections brought the cost up, but the extra revenue from these connections will certainly help offset those costs.
Pilot Project Teaches Lessons
Local Media Covers The MN "Donut Hole" Phenomenon: Video, Editorial
As Minnesota's Legislature decides on funding for the state's Border-to-Border Broadband Development Grant Program, local media is calling on state leaders to prioritize local connectivity in the Capitol Chambers. This year, Governor Dayton's office is recommending allocating $100 million to the program.
Blended Is Better
In the past, the Border-to-Border Broadband Development Grant Program has granted funding to areas of only the greatest need, which has resulted in Internet infrastructure deployment in very rural areas. That's great for municipalities, businesses, and residents in those areas who certainly need and deserve better connectivity. Towns where there is some coverage, such as old DSL networks, have typically not qualified. As a result, rural areas of the state are developing "donut holes" of inadequate connectivity. In the long term, this could spell disaster for these towns because businesses have no reason to locate in places where they can't get the Internet access they need for operations. A blended approach will allow investment in both unserved areas and areas where some networks already exist so centers of economic activity can still compete with their neighbors.
Chris provides more information on the blended approach, and on one possible solution for rural communities, in this nicely produced video created by Capitol Almanac:
Sweet Sixteen: Waverly Utilities Hooks Up First Fiber Customers
This week in Waverly, Iowa, the local electric utility, Waverly Utilities, hooked up the first customers for its new Fiber-to-the-Home (FTTH) network. It’s been a long time coming for the town of 10,000 people.
16 Years Ago: A Vision
The community first had the idea back in 2000 when they voted to form a municipal telecommunications utility after incumbent providers proved a letdown. Reacting to the vote, those incumbent providers improved their networks a bit, so Waverly Utilities decided to hold off on building a fiber network.
In 2013, residents and businesses found that the incumbent providers were again not providing necessary connectivity. Taking matters into their own hands, they pushed to create a new, publicly owned network. By 2015, the community had secured revenue bonds for the $12 million project.
Today: A Reality
Waverly Utilities already has 1,100 customers signed up to receive the service, and more homes and businesses will be connected over the next three months. By July 1st, Waverly Utilities’ network will be fully operational, delivering the next-generation connectivity that residents have long been waiting for.
For more about Waverly's project, take a few minutes to listen to Chris interview Mike Litterer, who was serving as Interim General Manager of Waverly Light and Power in 2013. He talked with Chris during Episode #53 of the Community Broadband Bits podcast.