Tag: "public v private"

Posted May 23, 2017 by lgonzalez

While attending the Broadband Communities Summit in Dallas, Christopher had the opportunity to interview some of the people he’s been wanting get on the show, including Kyle Hollifield, Senior Vice President from Magellan Advisors.

Magellan and Kyle have been working with a growing list of communities across the country exploring opportunities to improve local connectivity. In addition to helping communities find ways to bring better telecommunications services to residents, local leaders are turning to Kyle and Magellan for advice on what to do about better connectivity for businesses, community anchor institutions, and government facilities. Kyle and Christoper discuss the considerations local communities wrestle with as they search for the best approach for their unique situation.

As many are considering public-private partnerships, they need to balance expectations and goals. Kyle offers sage advice to communities that are seeking a private sector partner to invest in their area. For local governments that decide to invest in municipal networks, marketing services can often be an unfamiliar challenge; Kyle has a way of pinning down some of the important factors that can fall by the wayside but are crucial to keeping subscribers happy.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 28 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Posted May 15, 2017 by lgonzalez

Indianola Municipal Utilities (IMU) in Iowa finalized its business plan for citywide Fiber-to-the-Home (FTTH) service earlier this month. The decision marks a shift in how residents receive services in the community; IMU will take over from current partner Mahaska Communications Group (MCG) and expand to offer triple-play citywide.

Up To Now

Indianola created its municipally owned broadband utility back in 1997 and invested in fiber-optic backbone infrastructure a year later. They used the investment to backhaul fixed wireless service beginning in 2002 and by 2006 had developed a partnership with MCG. Expanding fiber to residents didn’t start until 2010 and two years later, MCG began offering triple-play services within certain areas of the city. Last year, the community commissioned a feasibility study to examine the possibility of using existing fiber resources to all premises in Indianola.

Under the current agreement between IMU and MCG, wholesale rates for residential connections are $30 per month and $100 per month for commercial connections. The feasibility study determined that the current rates “did not support expansion” to the entire Indianola community.

Trustees Say OK

Under the business plan approved by the Trustees at the May 8th meeting, IMU will step into MCG’s shoes and will buy out MCG’s existing 596 customers. IMU will be the FTTH retail services provider, offering triple-play of Internet access, VoIP, and IPTV. The network will work with Cedar Falls Utilities (CFU) on video services, connecting at the Des Moines regional data facility in order to reach them. IMU will have the opportunity to tap into about 7,350 potential residents and businesses in addition to MCG’s current customers.

The plan for expansion divides the city into 26 service areas but subscribers need to sign up early in order for the utility to connect their home. People who participate in early sign up will all have services activated at the same time. IMU has proposed rates for different services including:

  • Residential gigabit Internet access: $119 per month
  • Residential... Read more
Posted May 11, 2017 by christopher

Bonus episode! We did several interviews while at the Broadband Communities Summit and Dallas, so we are publishing two episodes this week. Diane Kruse joined us for today's discussion, episode 253, with an update about progress around community broadband in Colorado and great advice for communities considering an investment.

Diane is the CEO and President of NeoConnect, a consulting firm located in Colorado that works with communities around the country. We discuss realistic expectations for the nearly 100 communities that have voted to restore their authority to build and partner for better Internet networks.

We also discuss the range of options from doing nothing to building the full citywide fiber-optic network that Longmont is currently completing. Our interview touches on everything from incremental approaches to shadow conduit. 

Read the transcript of the show here.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 35 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Posted March 1, 2017 by christopher

I have been a Google Fiber supporter, believing that Google's investments and policy goals would move the United States forward, away from the monopolies of entrenched incumbents. When others claimed that Google was abandoning fiber, I argued that Google had not yet decided... it was arguing internally about the right path. 

But now I think it is pretty clear that Google is done with significant fiber investment, particularly for single family residential homes. I have strong doubts that Google will continue with the Huntsville-type approaches of leasing dark fiber, but I hope that will continue.

Google's decision to pursue other, likely more lucrative investments like AI and autonomous driving may be more profitable, but it is certainly disappointing for those of us working to ensure everyone has high quality Internet access.

It is important to note that companies like US Internet, Ting, and Sonic, among others have establishing strong businesses competing against the biggest telephone and cable companies. Google's exit is not evidence that ISPs cannot do well. It is evidence that Google has other opportunities and that its large scale focus on building its own fiber had too slow of a return for its Silicon Valley expectations.

This brings me to something I wrote 5 years ago, not actually expecting that Google would give up after only 5 years. 

If I were moving south of Minnesota in the near future, it would be to Chattanooga or Lafayette, not Kansas City. Who knows what Google will be doing in 5 years? We know exactly what EPB and LUS will be doing.

Wow. I think Kansas City is definitely better off for having worked with Google to enable that network. But there is no doubt in my mind that local investments are a better bet than hoping some distant company will save your community. I think this article understates Google's impact in KC significantly, but we are once again reminded that there is much more to benefiting from a network than simply laying fiber.

There is a lot of work that must be done to take full advantage of a modern network to benefit an entire community. This is why at the Institute for Local Self-Reliance, we put a greater focus on local investments with... Read more

Posted February 15, 2017 by lgonzalez

Last spring, the BT Advisory Board (BTAB) released a report that recommended the city of Burlington, Vermont, try to find a buyer with local ties to purchase its network with the troubled past. As the deadline draws near and the city seeks out the right entity to take the reigns, the community holds on to that goal. Keep BT Local!, the local organization that has been working since 2012 to turn the network into a cooperative, has announced that it will make an offer on the network.

According to Seven Days:

Alan Matson, vice chair of Keep BT Local, said the local co-op will put forward an offer for the utility. The member-funded effort likely won’t put forward as substantial an offer as a private tech company would, Matson acknowledged. Still, he said, “We hope to be one of the finalists in July.”

Matt Cropp, a member of Keep BT Local, said the co-op model would “build broad-based community wealth” and urged Burlingtonians to pitch in. He said he was willing to commit a portion of his retirement savings to the cause. 

Matson and Cropp were among a group of citizens who attended a public meeting with Advisory Board members to discuss options and offer advice on choosing a buyer. As expected, many of the attendees described the network as a valuable public asset and expressed concern that it not fall into the hands of a large, absentee telecommunications conglomerate such as Comcast. 

Choosing Finalists

As part of the process, the Board voted to send its proposed sale process to the city council for approval. Last year’s report established a set of criteria which the city will use to evaluate interested parties. Once the city council approves the process they propose, the BTAB will create a list of interested buyers and officially launch the sales process. They intend to create a list of finalists who would then present publicly before the city council and, by the end of July, the council would choose a... Read more

Posted December 2, 2016 by htrostle

 

This is the transcript for episode 230 of the Community Broadband Bits Podcast. Harold DePriest of Chattanooga, Tennessee, describes his role in building the fiber network in the city. This is an in-depth interview of over an hour in length. Listen to this episode here.

Harold DePriest: This fiber system will help our community have the kind of jobs that will let our children and grand children stay here and work if they want to. That is the biggest thing that has happened.

Lisa Gonzalez: This is episode 230 of the community broadband bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Chattanooga, Tennessee has been profiled in dozens of media outlets. It's a community reborn from one of the dirtiest cities in America, to what is now an economic development powerhouse. The city's publicly owned fiber optic network provides high quality connectivity that attracts businesses and entrepreneurs, but getting to where they are today did not happen overnight. In this episode, Chris has an in depth conversation with Harold DePriest, one of the men behind bringing fiber optics to Chattanooga. He's retired now, but as president and CEO of the electric power board, he was involved from the beginning. Harold describes how the electric power board made changes both inside and out, and went from being just another electric utility, to one that's considered one of the best in customer service in the country. The interview is longer than our typical podcast, but we think it's worth is. Now here are Chris and Harold DePriest, former CEO and president of the electric power board in Chattanooga, Tennessee.

Christopher Mitchell: Welcome to a community broadband bits discussion. A long form discussion, a little bit different from what we normally do, with someone that I have a tremendous amount of respect for, Harold DePriest. Welcome to the show.

Harold DePriest: Thank you. It's good to be with you Chris.

Christopher Mitchell: Harold, you've been the CEO, and you've recently retired from being the CEO and president of the electric power board in Chattanooga, which runs that legendary municipal fiber network. You've been involved in many capacities in public power, and I know that you're... Read more

Posted November 29, 2016 by christopher

In a break from our traditional format of 20-30 minutes (or so), we have a special in-depth interview this week with Harold Depriest, the former CEO and President of Chattanooga's Electric Power Board. He recently retired after 20 incredibly transformative years for both Chattanooga and its municipal electric utility. 

We talk about the longer history behind Chattanooga's nation-leading fiber network and how the culture of the electric utility had to be changed long before it began offering services to the public. We also talk about the role of public power in building fiber networks.

Something we wanted to be clear about - we talk about the timeline of when Chattanooga started to build its network and how that changed later when the federal stimulus efforts decided to make Chattanooga's electric grid the smartest in the nation. This is an important discussion as few understand exactly what the grant was used for and how it impacted the telecommunications side of the utility. 

But we start with the most important point regarding Chattanooga's fiber network - how it has impacted the community and the pride it has helped residents and businesses to develop. For more information about Chattanooga's efforts, see our report, Broadband at the Speed of Light, and our Chattanooga tag

Read the transcript of the show here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 70 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to mojo monkeys for the music, licensed... Read more

Posted October 27, 2016 by christopher

Google Fiber has finally announced its plans for the future after weeks of dramatic speculation that it will lay off half its workforce and give up on fiber-optics entirely. Google has now confirmed our expectations: they are pausing new Google Fiber cities, continuing to expand within those where they have a presence, and focusing on approaches that will offer a better return on investment in the short term.

Nothing Worth Doing Is Easy

In short, Google has found it more difficult than they anticipated to deploy rapidly and at low cost. And in discussions with various people, we think it can be summed up in this way: building fiber-optic networks is challenging and incumbents have an arsenal of dirty tricks to make it even more so, especially by slowing down access to poles.

That said, Google is not abandoning its efforts to drive better Internet access across the country. In the short term, people living in modern apartment buildings and condos will be the greatest beneficiary as Google takes the Webpass model and expands it to more cities. But those that hoped (or feared) Google would rapidly build Fiber-to-the-Home (FTTH) across the country are likely disappointed (or slightly relieved, if they happen to be big incumbent providers). 

This is a good moment to talk about the lessons learned from Google Fiber and what we think communities should be thinking about. 

Let's start by noting something we have often said: Google Fiber and its larger "access" approach have been incredibly beneficial for everyone except the big monopolists. Its investments led to far more media coverage of Internet access issues and made local leaders better understand what would be possible after we dismantle the cable broadband monopoly. 

Benoit Felton, a sharp international telecommunications analyst wrote a very good summary of Google Fiber titled Salvaging Google Fiber's Achievements. Some of my thoughts below overlap his - but his piece touches on matters I won’t address, so please check out his analysis.

I want to focus on a few key points.

This is Not a Surprise... Read more

Posted July 5, 2016 by christopher

In celebration of Independence Day, we are focused this week on consolidation and dependence. At the Institute for Local Self-Reliance, we are very focused on independence and believe that the consolidation in the telecommunications industry threatens the independence of communities. We doubt that Comcast or AT&T executives could locate most of the communities they serve on a blank map - and that impacts their investment decisions that threaten the future of communities.

So Lisa Gonzalez and I talk about consolidation in the wake of Google buying Webpass and UC2B's partner iTV-3 selling out to Countrywide Broadband. And we talk about why Westminster's model of public-private partnership is preferable to that of UC2B.

We also discuss where consolidation may not be harmful and how the FCC's order approving the Charter takeover of Time Warner Cable will actually result in much more consolidation rather than new competition.

Read the transcript from this show here.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 18 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Fifes and Drums of the Old Barracks for the music, licensed using Creative Commons. The song is "Cork Hornpipe."

Posted June 28, 2016 by ternste

This is the last in a four part series about the Click network in Tacoma, Washington, where city leaders spent most of 2015 considering a plan to lease out all operations of this municipal network to a private company. Part 4 highlights Click’s often unseen “spillover effects” on the City of Tacoma’s economy and telecom marketplace over the network’s nearly 2 decades in operation, contributions that Tacoma should expect to persist and even expand in the future.

We published Part 3, an analysis of why the municipal network is positioned to thrive in the years ahead within the modern telecommunications marketplace on June 21st. In Part 2, published on June 7, we reviewed why Tacoma Public Utilities considered the possibility of leasing out all of the Click operations. On May 31, we published Part 1, which reviewed the community's plans for the network.

Part 4: Click’s Accumulating “Spillover Effects”

Regardless of any impending changes with Tacoma Click’s operations, it’s clear that the network has and will continue to support and enhance the overall economic interests and the public good in the City of Tacoma. “Spillover effects” - the benefits to the community that don’t show up clearly in any financial statements - tend to appear after communities developing their own municipal broadband networks.

Click’s spillover effects start with the broad economic development benefits that arose when Click appeared. Before Click came to town, Tacoma was a city in economic decline. Many businesses had fled downtown for the suburbs over the 50-plus year period after World War II. 

While we can’t give Click all of the credit for the city’s efforts to rebound from that period of economic downturn, analysts like the U.S. Conference of Mayors cite the $86 million Click network as a major component. The network was part of an ambitious and highly successful economic development effort in the 1990s that helped to revitalize Tacoma. In 2005, the Sierra... Read more

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