The Massachusetts Broadband Institute (MBI) just announced that the 1,200-mile fiber network MassBroadband 123 is now complete.

According to the official announcement, the middle-mile network will eventually serve over 1,200 community anchor institutions. The open access network, constructed with $45.4 million in stimulus funding and an additional $40 million in state bond proceeds, lit up in March 2013. Schools, hospitals, and municipal government are some of the entities already connected.

Communities with a history of little or no middle-mile options will now have some level of connectivity via MassBroadband 123. The Commonwealth hopes to attract last-mile providers to connect homes and businesses, something we have yet to see succeed. We are afraid a more likely scenario will be a few providers seeking to connect the highest revenue customers with no intention to connect everyone, an outcome that would perversely make it more expensive to build financially sustainable networks in these areas.

A few places, like Leverett and Princeton, plan to invest in their own publicly owned infrastructure and will have the option to connect to the outside world through MassBroadband 123. This is an excellent approach that we applaud because it leads us to universal access.

According to a Bershire Eagle article, the state legislature plans to bring more funding to the initiative for last-mile connections:

But state Rep. William "Smitty" Pignatelli, D-Lenox, pointed out in an interview that much investment is needed before individual homeowners and businesses can connect to the network.

The state Senate is poised to move on a bond bill which includes $50 million to be put toward the project's phase, Pignatelli said.

Yet again, lobbyists from AT&T, Windstream, and Cincinnati Bell are lobbying state elected officials under the false guise of improving communications in Kentucky. In a Richmond Register opinion piece, Mimi Pickering from the Rural Broadband Policy Group revealed the practical consequences of Senate Bill 99.

Republican Senator Paul Hornback is once again the lead sponsor on the bill. As usual, backers contend the legislation moves Kentucky communications forward. Last year, Pickering and her coalition worked to educate Kentuckians on SB 88, that would have eliminated the "carrier of last resort" requirement. We spoke with Pickering about the bill in Episode #44 of the Broadband Bits podcast. They had a similar fight in 2012.

In her opinon piece, Pickering describes the practical effect of this policy change:

It would allow them to abandon their least profitable customers and service areas as well as public protection obligations. But it is a risky and potentially dangerous bet for Kentuckians. Kentucky House members should turn it down.

Everyone agrees that access to affordable high-speed Internet is a good thing for Kentucky. However, despite what AT&T officials and their numerous lobbyists say, SB 99 does nothing to require or guarantee increased broadband investment, especially in areas of most need.

AT&T Kentucky President Hood Harris claims that current Kentucky law prevents the company from investing in new technology. As Pickering points out, AT&T refused to build in unserved areas when offered federal funds. Those funds came with minimum obligations; AT&T was not interested.

On January 30, the FCC announced it will begin a process that makes Connect America funds available for pilot projects aimed at expanding broadband in rural areas. Details about the process are still forthcoming, but the FCC asks interested parties to submit "expressions of interest" by March 7th. In order to assist possible applicants, the National Rural Assembly's Broadband Working Group will hold a webinar today, February 13th, at 1:30 EST.

From the webinar announcement:

The National Rural Assembly's Rural Broadband and Policy Group invites all rural stakeholders, to participate in a national webinar in cooperation with the Federal Communications Commission that will explain how to participate in the FCC's new experiment, the Rural Broadband Trials - a program that will fund projects to bring broadband to rural areas.

Participation in this first phase is not mandatory but encouraged. The results from the expressions of interest process will help the FCC determine how much funding will be needed.

You can register online for the free webinar.

We reported last month on a decision from the FCC to make Connect America funds available to expand broadband. At the time we did not have much detail on the measure, but on January 30th, the FCC released its official statement. The agency reached a unanimous decision to open up Connect America Fund dollars for experimental projects.

The FCC restructured the Universal Services Fund (USF) in 2010 to create the Connect America Fund. Until now, those funds were only available to large incumbents. Because some incumbents did not want to be bound terms associated with the funds, they did not take the money and so a portion of it has not been distributed.

In the January 30th announcement, the FCC stated that it will open up funding to entities other than large incumbents in experimental processes, including nonprofits, cooperatives, municipal and tribal governments, and private businesses. The FTTH Council reported:

Specifically, the Commission’s order outlines a call for multiple pilot projects to examine how best to make the technology transition while preserving consumer welfare and promoting the widespread deployment and use of broadband networks. As part of those projects, the Commission, informed by recommendations of the FTTH Council, will be using “test beds” to experiment with different models of bringing next-generation high-speed broadband to rural areas. 

Interested parties must first file an expression of interest, describing how they would invest the funds. In keeping with the original goal of the Connect America fund, the FCC hopes to hear from organizations with rural broadband project plans. According to a Daily Yonder article on the process:

[Jonathan Chambers, the chief of the FCC’s Office of Strategic Planning and Policy Analysis] said the initial “expression of interest” isn’t a complex document. The FCC wants to hear who is interested in applying for support, what homes or institutions they want to serve and an estimate of the cost to get the job done.

Even though the Kansas cable lobby have temporarily retracted their competition-killing telecom bill, we still want to highlight the benefits of preserving full home rule, local authority by focusing on a number of communities, including Chanute, Ottawa, and Erie.

Chanute

We have reported on Chanute's municipal network for years. The community leveraged its electric utility assets and incrementally built an extensive publicly owned gigabit fiber network. Over several decades, the community expanded its network to serve schools, libraries, local government, and businesses. Chanute took advantage of every opportunity and created a valuable asset with no borrowing or bonding.

Several business, including Spirit AeroSystems, chose to locate in Chanute because of its incredible fiber network. Spirit brought approximately 150 new jobs. The network also retained jobs when incumbents refused to provide needed upgrades to local businesses. Rather than leave town, the businesses connected to the City's network and increased their productivity. 

Former City Manager J.D. Lester referred to municipal broadband as “the great equalizer for Rural America,” saying: “You don’t have to live in Kansas City to work there.” (See our case study Chanute's Gig: One Rural Kansas Community's Tradition of Innovation Led to A Gigabit and Ubiquitous Wireless Coverage [PDF])

Kids in Chanute have access to connectivity other schools can only dream about. The local community college has expanded its distance learning program with higher capacity broadband. Free Wi-Fi hotspots are all over town; money otherwise sent to distant providers stays in the community. Chanute has invested in a WiMAX wireless system that serves public safety all over the region, not only in town. Their other utilities use the network for automatic metering and SCADA applications, saving energy and allowing customers the chance to reduce utility bills.

encourage the development and widespread use of technological advances in providing video, telecommunications and broadband services at competitive rates; and ensure that video, telecommunications and broadband services are each provided within a consistent, comprehensive and nondiscriminatory federal, state and local government framework.

Mark your calendar to attend Boarder to Boarder Broadband: A Call to Action on February 4 - 5 in St. Paul, Minnesota. The event is sponsored by the Blandin Foundation and a long list of organizations concerned with connectivity, economic development, and education ni Minnesota.

ILSR's Chris Mitchell will be presenting on February 5 as part of 9:15 CST Breakout Session, Broadband Infrastructure Development. Other Breakout Sessions are Digital Inclusion, Business and Economic Development, and Applications. A detailed agenda and speakers list is available [PDF].

A description of the conference from the registration page:

The time is ripe for Minnesota legislators and residents to have a “So what? Now What?” conversation about our shared aspirations for Border to Border Broadband:

• The Governor’s Broadband Task Force is issuing their 2013 report and recommendations soon.
• The director of the Office of Broadband Development will be in place in January 2014
• Minnesota state legislators have been touring rural areas to hear directly from Minnesotans about their technology needs and dreams.

Conversations have been happening but…What does it all add up to?

The event will be at the RiverCenter in downtown St. Paul. Attendee tickets are $120 ($60 per day) and Exhibitors pay $300 or $60 if your organization is a nonprofit. You can secure your ticket by registering online. See you there!

The Sun Prairie City Council met on January 14th to discuss a possible investment in a municipal fiber network. Thank you to local resident Jonathan Kleinow for alerting us to developments in the south central Wisconsin town.

The Star published an article about the meeting in which The Motive Group presented information to the Committee of the Whole. According to the story, the consulting firm has been working with Sun Prairie Utilities for a year to find ways to improve local connectivity and spur economic development with fiber. The community is considering the possibilities of a triple-play FTTH network for the areas 30,000 residents.

Sun Prairie Utilities solicited responses to a community survey. They received 700 responses with 88% in favor of a fiber investment. 

From the article:

The recommended plan put for[th] by The Motive Group has a total cost of near $27 million, with $21 million of that as year-one capital expenditures to serve roughly 13,550 homes and businesses in the city.

Budgeted in the initial year's expense total is $11 million for aerial and underground construction and equipment.

Once the fiber system is operational and available for customers, [The Motive Group's Beth] Ringley said projections show $9.97 million in annual operating revenue by year 20 of the system to go along with expenses of $1.26 million.

By year 20, total assets are projected to be at $27.16 million, with total cash at $12.56 million.

Councilman Jon Freund commented that he was opposed to the idea at first but that he now believes Sun Prairie Utilities and the City could partner to distinguish the community. From the article:

“Technology has become a greater and greater need for both businesses and residents,” Freund continued. “This is an opportunity for us to basically differentiate Sun Prairie from all the other communities in Dane County.”

...

He added that fiber installation would “put Sun Prairie on the leading edge” for economic development and local and long-distance education opportunities.

A recent press release from the Merit educational and research network in Michigan announces a new connection to its Ohio sister, OARnet. Member entities and local communities now enjoy better redundancy, expanded reach, and better services. Local communities continue to benefit from the presence of the middle mile infrastructure.

The network helps local Hillsdale College to cut connectivity costs; the Merit announcement quotes Hillsdale College leadership:

"Hillsdale College has been a Merit member since 1992," stated David Zenz, executive director of information technology services for Hillsdale College, "and it was always a dream to figure out some way to eliminate expensive data circuit costs to free up funds to purchase more bandwidth. In 2008 The City of Hillsdale, the Hillsdale Intermediate School District, Hillsdale College, and Merit figured out how to do just that."

Through a long term collaborative effort, Merit, the City of Hillsdale, Hillsdale Board of Public Utilities (BPU), Hillsdale College, and Hillsdale County Intermediate School District (ISD) came together to establish the Hillsdale Community Network. Each entity now benefits from lowered connectivity costs, better infrastructure, and improved opportunities. 

A 2009 story from Merit, describes the situation at ISD:

The Logan Journal recently reported that the Russellville Electric Plant Board (EPB) now offers gigabit service to local businesses. The article notes that Net Index, an online tool to measure download and upload speeds, recognizes EPB as the first Gig city in Kentucky. To learn more about the community and its network, we talked with Robert White, General Manager of EPB.

The community of 7,000 is the county seat of south central's Logan County. Russellville is located in the center of several other larger communities: Nashville, Bowling Green, Hopkinsville, and Clarksville, Tennessee. Manufacturing has been a large part of the local economy for generations, but community leaders recognize the vulnerability of a narrow economic base. In order to encourage a versatile economy, Russellville invested in its telecommunications utility.

The community wants to encourage small business while simultaneously providing manufacturers the connectivity they need. Leadership sees the ability to remain competitive directly tied to their network. In addition to the economic development opportunities a fiber network can provide, communities like Russellville rely on electricity revenue from large consumers. Retaining the large electric consumers that also provide jobs in the community is a must.

Russellville's electric utility created a strong advantage when it was time to venture into telecommunications. EPB had already established a strong relationship with its Russellville customers, says White, and locals felt they could trust their municipal electric provider.