Tag: "public benefits"

Posted July 3, 2014 by lgonzalez

The Gainesville City Council recently approved a plan to deploy a fiber ring throughout the Texas town of 16,000. The network will connect municipal facilities and offer gigabit connectivity to local businesses. Gainesville is located seven miles from the Oklahoma border in Cooke County.

According to City Manager Barry Sullivan, the planned route will provide access to 95% of local businesses. Sullivan told KXII:

"That is key to economic development now. People used to look at streets, water and sewer. Now the first thing a lot of companies look at is the communication infrastructure because that is more limited than streets, water and sewer in most communities," said Sullivan.

The project will cost $525,000; the City will pay $425,000 and the Economic Development Board will contribute the remaining $100,000.

Watch the news video or read the story for more information.
Posted April 24, 2014 by christopher

Recent reports out of the FCC say that it will allow ISPs to create and sell "fast lanes" of Internet access to the companies with sufficiently deep pockets to afford them. While some people argue over whether this violates network neutrality principles or not, the more important point is that most communities have no control over how the networks on which they depend are operated.

The big ISPs, like Comcast and AT&T, are focused on maximizing revenue for their shareholders. It is why they exist. So they will want to make the fast lanes as appealing as possible, which in turn means making providers like Netflix unable to deliver a high quality product without paying special tolls to Comcast.

What does that mean for you? It means you should expect to see the big providers slow their already anemic pace of investing in higher capacity connections in favor of pushing content providers into the paid prioritization schemes. It also means that you may have to start paying more for Netflix or Hulu, where the additional money goes to the ISP you already overpay for comparatively lousy service.

A range of ISPs, from privately owned Sonic.Net in California to Chattanooga's Electric Power Board right up to Google have demonstrated that they can deliver a "fast lane" to everyone. This fight over paid prioritization is nothing more than the big cable and telephone companies trying to increase their profits while minimizing needed investments in higher quality service to everyone.

Unless you live in an area with a community-owned network. Unlike the big providers with a fidiciary responsibility to distant shareholders, community owned networks are directly accountable to the community. Their mission is to maximize local benefits, not extracting as much wealth from households as possible. ISPs like Sonic also have much more reasonable policies but over time these privately owned ISPs are vulnerable to being bought by the big national providers.

Community owned networks are far less likely to engage in paid...

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Posted February 4, 2014 by lgonzalez

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.

Chanute Logo

In addition to savings public dollars by reducing the cost of municipal connectivity, the broadband utility...

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Posted January 7, 2014 by christopher

Today, Lisa and I are joined by Eric Lampland for a discussion of how a community could justify building a community owned network from the indirect benefits that it would create, including the savings that each household realizes from competition driving down prices. Eric Lampland is the CEO and principal consultant of Lookout Point Communications, which helps local governments that are building a network or considering an investment.

Eric and I start by discussing how quickly the cost savings per household add up to equal more than the cost of building a network and we digress from there, covering other topics related to community owned networks. This includes how big cable companies would respond to this approach.

I have to note that most community networks have not been justified on this basis - the vast majority of community networks were designed to pay their full costs and they are doing so. Here, we discuss the general benefits of these networks that are often sidelined in the policy discussion and how they alone may justify a fiber network.

Toward the end, we begin discussing open access, something we will likely return to in the future as Eric has long both advocated for open access and has some insights into the technical challenges of building such a network.

Read the transcript from this episode here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 25 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to...

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Posted July 24, 2013 by lgonzalez

WUNC 91.5, North Carolina Public Radio, recently introduced Greenlight to its audience. We have covered Wilson and Greenlight extensively since 2009. Will Michaels spoke with Will Aycock, highlighting the network's gigabit status.

"We're able to support the surveillance cameras and different sensors throughout the community to make us a smarter city.  Certainly, we're able to support many institutions here such as schools and libraries," Aycock says.

"It's really about removing the barriers between our residents, our institutions and the Internet so that people have all the bandwidth they need."

In our 2013 case study, Carolina's Connected Community: Wilson Gives Greenlight to Fast Inernetwe documented the benefits to the community. Aycock commented on the role the network plays in bringing new residents and business to Wilson:

"We're actually seeing folks deciding to move to Wilson from other areas because they want access to this next-generation network," he says.

"People even decide, if they're going to build a house, where to build a house.  For instance, radiologists want to be on the network because it helps them to more efficiently do their jobs from home."

Now if North Carolina's Legislature would just undo the 2011 power grab, when it passed legislation to revoke authority from communities to decide locally if building their own network made sense.

Posted April 3, 2013 by lgonzalez

Spencer Municipal Utilities (SMU) of Spencer, Iowa, will be replacing old copper cable with fiber this summer. According to the Daily Reporter, customers can expect the upgrade with no increase in rates. From the article:

"Just like internet service has evolved from dial up to DSL and cable modem, fiber will give customers the next level of service to continue to improve the way they live, work and play here in Spencer," Amanda Gloyd, SMU marketing and community relations manager," said.

"We want to keep our customers on the cutting edge," she said.

Plans are to upgrade around 700 customers in one section of town during this first phase at a cost of around $2 million.

"This project is all paid for with cash in the bank," [General Manager Steve] Pick said. "This is an investment in the system."

SMU has offered telecommunications services to customers since 2000 and supplies water, electric, cable tv, Internet, telephone, and wireless service in the town of about 11,000. Rates for Internet range from $20 to $225 per month with cable tv analog Basic service as low as $14 and Basic Plus at $46. As options are added, monthly fees increase.

We see regular upgrades in service with little or no increase in price from many municipal networks. Comparatively, increases in price with little or no increase in service is a typical business decision from the private sector. Unlike AT&T, CenturyLink, or Time Warner Cable, municipal networks like SMU consider customers to be shareholders, and do what is best for the community at large.

We spoke with Curtis Dean of the Iowa Association of Municipal Utilities for episode 13 of the Community Broadband Bits podcast. He told us about the tradition in Iowa for self-reliance and its manifestation in the telecommunications industry.

Curtis also told us about Hansen's Clothing, a century-old men's clothier in Spencer. This community staple was on the edge of closing its doors until broadband came to town. Hansen's was able to begin selling high quality clothing online, offering pieces...

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Posted October 22, 2012 by lgonzalez

In 1881, Clara Barton started the American Red Cross as a way to offer relief to victims of disaster. Coordinating relief in the face of crisis will always be challenging, but now UTOPIA, the publicly owned, open access FTTH network in Utah, makes it easier and more economical. The change will allow the regional Red Cross to dedicate more funds to helping people, rather than for administrative costs.

The Murray, Utah, Blood Services location is now using an in-house video conferencing system with bandwidth supplied by UTOPIA. From the UTOPIA blog:

“The UTOPIA network definitely has the bandwidth and reliability we need for video conferencing,” says Travis Weaver, Technical Support Analyst at the American Red Cross. “UTOPIA has made in-house video conferencing possible for us. This switch saves us money because doing it in-house is cheaper than paying for the service and it allows for long distance, face-to-face meetings without the cost of travel.”

Weaver also considers the open access an added benefit. The organization is able to work with one of their current providers, easing billing and negotiation. The organization clearly appreciates UTOPIA's presence:

Weaver feels the infrastructure UTOPIA provides is critical. “I believe in the need to continually invest in the communications infrastructure of our municipalities,” he says. “Failure to do so will not let us keep pace with the rapidly accelerating network communications global community. Having access to UTOPIA in Murray City has certainly opened up our capacity to meet the communication needs of our organization by using leading-edge technology.”

 

Posted June 8, 2012 by christopher

Monticello has been all over the muni broadband news lately, in the wake of a letter it sent to bondholders [pdf] alerting them that the City would no longer make up the difference between the revenues produced by the system and the debt payments. This came shortly after the company managing the network decided to step down.

Over the next year, the reserve fund will make up the difference while the City and bondholders come to some sort of an agreement.

The Star Tribune today published a good synopsis of the situation:

City administrator Jeff O'Neill said that the city has no intention of abandoning FiberNet's 1,700 customers, including about 130 businesses.

"This system isn't going anywhere," he said. "We're not going out of business."

Despite the problems, he said the city has one of the fastest Internet systems in the country that has driven down prices and improved services by providing competition.

The article also notes that prior to the City-owned network, the telephone company (TDS) provided very poor DSL service that was harming area businesses with slow and very unreliabile phone and broadband services. Without FiberNet Monticello, we don't know how many businesses would have been forced to relocate to be competitive in the digital economy.

We decided to dig a little deeper to get a sense of what Monticello has received for its investment and difficulty. We previously examined the prices charged by Charter cable in town and found that households taking that deal were saving $1000/year.

monticello-goodbadugly_0.jpg

We also noted that Charter was almost certainly engaging in predatory pricing. After talking with other networks, we would guess that Charter is losing between $30 and $50 (conservatively) per subscriber per...

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Posted November 2, 2011 by christopher

CNN Money has profiled 7 government-backed inventions.  Most of us know the Internet would not have been possible without the research and development funded by tax dollars, but fewer know that the GPS and microchip were also created as a direct result of "big government."

Beyond those inventions, I was suprised to find that aerodynamic trucks (tractor trailers on the highway) were designed by NASA.  Bar codes -- imagine modern commerce with the ubiquitous bar code -- were developed with funding from the National Science Foundation.  

As a nation, we greatly appreciate the innovation that comes from the private sector (especially you Apple fan-boys) but it is beyond time we recognize the role of the public sector in innovation as well.  Heck, just how much innovation would we see on farms if they were still only connected with dirt roads??  How much more will we see when they are all connected with fast, affordable, and reliable connections to the Internet?  

Posted August 22, 2011 by christopher

Lafayette Doing OK, Doubles Capacity for Promotion

John at Lafayette Pro Fiber recently updated us all on LUS Fiber's financials. According to John, LUS Fiber is doing OK, not great, in its FTTH offering (probably the best deal in the nation for fast, affordable, and reliable connections). In reading deeper, it is clear that the impact of the community network on the public is GREAT, not just ok.

From John's writeup:

LUS estimates that the citizens of the community have saved 5.7 million dollars—in part direct saving from LUS' cheaper phone, video, and internet services and in part as a consequence of Cox lowering its prices and giving out special rates. Those special rates were discussed in the meeting with Huval pointing out that Cox had petitioned for and received permission to treat Lafayette as a "competitive" area. That meant that Cox could offer special deals to Lafayette users and, as we all know, has offered cuts to anyone who tries to leave. Those "deals." as Huval pointed out to Patin don't include the rural areas of the parish where Cox has no competition.

But it doesn't end there. LUS Fiber, due to anti-competitive laws pushed through the state's legislature to handicap public providers, is actually subsidizing the City -- providing more benefits to everyone, even those who do not subscribe to the network.

Again it all goes back to the (un)Fair Competion Act. One of the things in that act a concession that LUS Fiber would be able to borrow from LUS' other utilities just like any other corporation could set up internal borrowing arrangements. This is not a subsidy, it's a loan—with real interest. One of the efforts to raise an issue by Messrs Patin and Theriot centered around "imputed" taxes. Those are extra costs that Cox and ATT got the state to require that LUS include in order to force LUS to raise their price to customers (you!) above the actual cost. (Yes, really. See...

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