Tag: "public v private"

Posted July 28, 2015 by christopher

The community reaction to Longmont's NextLight gigabit municipal fiber network in Colorado has been dramatic. They are seeing major take rates in the initial neighborhoods, driven in part by the opportunity for a $50/month gigabit connection if you take service within three months of it becoming available in the neighborhood.

This week, Longmont Power & Communications General Manager Tom Roiniotis joins us to tell us more about their approach and how the community has responded, including a block party celebrating freedom from a well-known monopoly.

We discuss how they have connect the schools, the history of the network, and how incumbent providers are reacting. Along the way, I make a case for why what Longmont is doing is substantially different from the upgrades that CenturyLink and Comcast are making in some areas. See our other stories about Longmont here.

Read the transcript from this discussion here.

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

This show is 24 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 other episodes here or view all episodes in our index. You can can download this Mp3 file directly from here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."

Posted April 9, 2015 by lgonzalez

On April 7th, voters in Glberts, Illinois, chose not to raise taxes to deploy a municipal fiber network, reports the Daily Herald. According to the article, 81 percent of ballots cast voted against the proposal. Voter turnout was low, with only 682 ballots cast out of 4,002 registered voters in town.

As we reported last month, local developer Troy Mertz plans to deploy fiber to each structure in a new housing development, The Conservancy. His fiber company will also install fiber to nearby municipal and public safety buildings and the Gilberts Elementary School. The plan was to issue General Obligation (GO) bonds to finance a publicly owned network throughout the rest of the community. The proposal would have raised taxes approximately 1.8 percent or $150 per year on properties with a market value of $250,000.

For the developer the plan will remain the same:

Mertz still plans to go ahead and connect The Conservancy's planned fiber optic network to municipal and public safety buildings plus Gilberts Elementary School, saying it was built into his development plans.

"The goal of village was always to getting fiber to our industrial areas," said Gilberts Village President Rick Zirk. "As a community, we asked the rest of the village, 'Do you want the same service and the same options that the new part of town and the industrial park?' And it seems that they don't want to pay for it."

There is a definite lesson here for any other communities considering a similar plan - educate the voters and make sure they are excited about it! From what we can tell, there was little effort to make people aware of the plan and the turnout for the vote suggests that no one was particularly excited to make it happen.

Posted March 24, 2015 by lgonzalez

The Village of Gilberts, Illinois, will ask voters in April to authorize up to $5 million in General Obligation bonds to deploy a FTTH network reports the Daily Herald. GO bonds are rarely used for network deployment but often used for public works projects and other publicly owned assets. Due to the funding mechanism in Gilberts, the network would be publicly owned.

"It's something that is not readily available in other communities," Village Administrator Ray Keller said. "It would set us apart and put us on a path to better meet the needs of our residents and businesses as their demands and needs for technology grows."

The community, home to 6,800 people, has experienced rapid population growth since 2000. At that time only 1,200 people lived in this northeast Kane County village.

According to the article and January Board of Trustee minutes [PDF online], the bond issue would increase property taxes 1.8 percent on most tax bills. Properties with a market value of $250,000, which is most common in Gilberts, would pay an additional $150 per year or $12.50 per month to fund the infrastructure deployment. There are approximately 2,400 taxable properties in Gilbert today but as more properties are built, each property owner's share would decrease. 

This is the second time the village has planned for a fiber network to improve connectivity throughout the community. In 2013, Gilberts entered into an agreement with i3, a British company that eventually folded, to deploy fiber using sewers as conduit. In that plan, i3 would have owned the fiber network.

Developer Troy Mertz is spearheading the project. His company is investing in a new housing development that will eventually include an additional 985 new homes. As part of that development and independent of the municipal fiber project, Mertz is installing fiber to each structure at his own expense. His company, iFiber Networks will also run fiber to nearby municipal and public safety buildings and the Gilberts Elementary School. According to the Daily Herald, iFiber is not charging the city for bringing fiber to its facilities or the school.

Mertz... Read more

Posted March 23, 2015 by rebecca

The Orlando Sentinel published this op-ed about local government action for broadband networks on March 11, 2015. 

Local governments should make broadband choices
By Christopher Mitchell

Community broadband must be a local choice, a guest columnist writes.

When Comcast announced plans last year to invest hundreds of millions in theme parks in Florida and California, its customers may have wondered why the cable giant wasn't using those funds to deliver a faster or more reliable Internet connection. While Comcast's Universal Studios faces competition from Walt Disney World, most people don't have a real choice in high-speed Internet access.

The Federal Communications Commission has just boosted the broadband definition from 4 megabits per second to 25 mbps. At that speed, some 75 percent of Americans have no choice in providers — they are stuck with one or none.

The rest of America is living in the future, often because their local government rolled up its sleeves and got involved. In some of these communities, the local government built its own network and others worked with a trusted partner. Chattanooga's city-owned electric utility built the nation's first citywide gigabit network, which is about 100 times faster than the average connection today.

Google is famously working with some bigger cities, whereas local provider GWI in Maine has partnered with several local governments to expand gigabit access.

However, the big cable and telephone companies have almost always refused to work with local governments. Instead, they've lobbied states to restrict the right of local governments to build or partner in this essential infrastructure.

In Florida, the law puts restrictions on local governments that do not apply to the private sector, such as a strict profitability timetable that can be unrealistic for large capital investments regardless of being privately or publicly owned. Some 20 states have such barriers that limit competition by effectively taking the decision away from communities.

In January, President Obama spoke out in favor of local governments being able to make these investments and partnerships without state interference. He was in Cedar Falls, Iowa, which has one of the oldest municipal broadband... Read more

Posted January 22, 2015 by lgonzalez

In Missoula and Bozeman, momentum is building for improved connectivity by way of community network infrastructure. As usual, funding a municipal network is always one of the main challenges, but the state appears uninterested in helping them. State Representative Kelly McCarthy recently dropped HB 14 into the hopper, a bill to create a broadband development fund primarily for private companies.

The bill authorizes $15 million in general obligation bonds for broadband infrastructure projects for middle-mile and last-mile connectivity in rural areas. Unfortunately, projects built and maintained by private entities have priority per the language of section 3(2)(b).

The state legislature would be wise to follow Minnesota's lead and establish a program that is available to all as in the Minnesota Border-to-Border Broadband Development Grant Program. Private entities are eligible to apply along with public entities and nonprofits, but do not receive special consideration.

If anything, the long history of success from cooperatives and local government approaches in infrastructure is favorable to the history of consolidation and poor services that big monopolies have offered in rural areas.

It never ceases to amaze us that people designing programs to use taxpayer money in expanding essential infrastructurel would earmark it only to subsidize entities that are the least accountable to the communities they are supposed to serve. Ultimately you have to wonder whether these programs are designed to benefit local communities or just the companies that can best afford lobbyists.

Posted January 20, 2015 by christopher

In recent weeks, we have been excited to see announcements from Ting, a company long known for being a great wireless provider (both Lisa and I are customers), that is now getting into FTTH deployments. The first announcement was from Charlottesville where it acquired another company. Last week they announced a partnership with Westminster, Maryland.

This week we interview Elliot Noss, CEO of Tucows, which is the parent of Ting. Elliot has long been active in preserving and expanding the open Internet.

We discuss many issues from Ting's success in wireless to cities dealing with permitting and access in rights-of-way to Ting's willingness and enthusiasm to operate on municipal fiber open access networks. We finish with some musings on upcoming over the top video technologies like SlingTV from Dish.

Both Elliot and I are presenting at the upcoming Freedom to Connect event in New York City on March 2 and 3rd.

Read the transcript of this episode here.

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

This show is 27 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 Persson for the music, licensed using Creative Commons. The song is "Blues walk."

Posted January 6, 2015 by christopher

Ever since the last time I spoke with Blair Levin on Episode 37, I have wanted to have him back for a friendly discussion about public or private ownership of next generation networks.

Though Blair and I entirely agree that local governments should be free to decide locally whether a community broadband network investment is a wise choice, he tends to see more promise in partnerships or other private approaches whereas we at ILSR tend to be concerned about the long term implications of private ownership of essential infrastructure.

In what may be the longest interview we have done, Blair and I discuss where we agree and how we differ. We weren't looking to prove the other wrong so much as illustrate our different points of view so listeners can evaluate our sides. Ultimately, we both believe in a United States where communities can choose between both models -- and some may even seek solutions that incorporate both.

Blair Levin was the FCC Chief of Staff when Reed Hundt was Chair and was instrumental in forming Gig.U. In between, he did a lot of things, including being Executive Director for the FCC's National Broadband Plan. He is currently with the Metropolitan Project at Brookings.

Read the transcript of our discussion here.

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

This show is 37 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... Read more

Posted October 15, 2014 by lgonzalez

Our Community Broadband Map documents over 400 communities where publicly owned infrastructure serves residents, business, or government facilities. We rarely hear of publicly owned systems sold to private providers, but it does happen once in a blue moon.

Accelplus, the fiber optic FTTH network deployed by Crawfordsville Electric Light & Power (CEL&P) in Indiana was sold earlier this year to private provider Metronet.

According to a July Journal Review article, the transition for customers began this summer with completion expected by the end of 2014. Metronet invested approximately $2 million in upgrades. Metronet will also offer voice services via the network; Accelplus offered only Internet and video.

In the past, we have found that networks that offer triple-play can attract more customers, increasing revenues. In states where munis cannot offer triple-play or administrative requirements are so onerous they discourage it, municipalities that would like to deploy fiber networks sometimes decide to abandon their vision due to the added risk. 

A November 2013 Journal Review article reported that the network, launched in 2005, faced an expensive lawsuit commenced by US Bank. Apparently the network could not keep up with the repayment schedule for Certificates of Participation, backed by network revenue, that financed the investment.

Metronet purchased Accelplus and its assets for $5.2 million. The City also provided some economic development incentives. When all is said and done, investors are settling for a total of $5.6 million and the City avoids a $19.6 million lawsuit.

A February Journal Review article reported:

Metronet will receive a 10-year, $24,000 per year lease from CEL&P on property currently used by Accelplus. Metronet can purchase that property for $1 after the lease expires. Accelplus manager John Douglas has segregated those areas and provided AutoCAD drawings to Metronet.

Furthermore, CEL&P will lease 72 strands of fiber to Metronet at the rate of $24,000 per year for... Read more

Posted October 14, 2014 by christopher

Lisa Gonzalez and I have been wading though all kinds of crazy talk since the cities of Wilson and Chattanooga filed petitions with the FCC to strike down state laws that prevent them from offering Internet access to their neighbors.

In our first episode of Crazy Talk since way back in episode 72, we deal with claims that municipal networks often fail, whether the FCC has authority to restore local authority, and whether the state barriers in question are actually barriers at all.

In this episode, I refer to this article in The Atlantic regarding law schools.

Read the transcript 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 16 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 Jessie Evans for the music, licensed using Creative Commons. The song is "Is it Fire?"

Posted September 30, 2014 by lgonzalez

In our latest report, All Hands On Deck: Minnesota Local Government Models for Expanding Fiber Internet Access, we analyze how local governments in 12 Minnesota communities are expanding 21st century Internet access to their citizens.

In 2010, the Minnesota legislature set a goal for 2015 - universal access to high speed broadband throughout the state. Even though we have the technology to make that vision a reality, large swaths of the state will not meet that goal. Nevertheless, local folks who have chosen to take control of their connectivity are finding a way to exceed expectations, surpassing the choices in many metropolitan regions.

Some of the communities we cover include:

  • Windom, which is one of the most advanced networks in the state, built their own network after their telephone company refused to invest in their community.
  • Dakota County showed how a coordinated excavation policy can reduce by more than 90 percent the cost of installing fiber.
  • Lac qui Parle County partnered with a telephone cooperative to bring high speed broadband to its most sparsely population communities.

We delved into networks in Anoka, Carver, Cook, Lake, and Scott Counties. The report also shares developments in the municipalities of Chaska, Buffalo, and Monticello. We tell the story of RS Fiber, located in Sibley and part of Renville County. These communities provide examples of municipal networks, a variety of public private partnerships, and "dig once" policies.

This week in Minnesota, the governor’s office began accepting applications for the state’s new $20 million initiative Border-to-Border program. We hope this new report will serve as a resource for potential applicants and other community leaders across the U.S. interested in taking charge of their broadband destinies.

... Read more

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