Tag: "take rate"

Posted September 23, 2021 by Jericho Casper

Just a year after city leaders of Superior, Wisconsin (pop. 26,000) passed a resolution declaring fiber optic cabling critical infrastructure, officials are beginning to put the city’s money behind an action plan. In August, a majority of City Council members voted to adopt a plan to develop a city-owned fiber network and Superior Mayor Jim Paine proposed to reserve the bulk of the city’s American Rescue Plan federal relief funds to back the project.

The recent 8-2 City Council vote gave the green light to move forward with Connect Superior – a plan to construct open access, fiber optic broadband infrastructure reaching every resident, community anchor institution and business in the city. 

As Mayor Paine plans to budget no less than $10 million of the city’s $17 million in Rescue Plan funds to finance the project, Superior’s legislative and executive officials are largely united behind the decision to pursue the path laid out in a Broadband Master Plan [pdf] developed for the city by EntryPoint Networks.

City Councilors’ adoption of the Master Plan is a significant step forward, even as there are still numerous motions the City Council will need to approve in order for municipal fiber to become a reality. 

The next phase of the project involves designing and planning the network and hiring the contractors who will build it. City Council members will have to approve every contract with every consultant, design, and engineer firm along the way; as well as the Mayor’s American Rescue Plan budget in order to award the funds necessary to get the project rolling.

In a recent interview with ILSR, the City Council President Tylor Elm, who first proposed the idea for municipal fiber to Mayor Jim Paine several years ago, said the overwhelming support of the City Council demonstrated during the Master Plan vote provides a good perspective on how the project will fare.

Community Savings

The main objective of the Connect Superior project is reducing the cost of...

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Posted August 4, 2021 by Sean Gonsalves

Even before the central Florida city of Ocala in Marion County became officially known as “The Horse Capital of the World,” the city – home to 61,810 Floridians and over 1,200 county-wide horse farms – was already galloping toward high-speed Internet connectivity. In recent years, the Ocala Fiber Network (OFN) has expanded into offering residential service, trotting carefully towards a citywide fiber-to-the-home (FTTH) finish.

It began in 1995 with the Ocala municipal electric department upgrading its substation monitoring (SCADA) system, which has been estimated to have saved the city $25 million in networking costs since. Over the past two years, OFN has extended the network to bring affordable, reliable, high-speed Internet service to city residents, neighborhood by neighborhood.

While the municipal network has been providing high-speed Internet service for the past decade to area businesses, healthcare facilities, community anchor institutions, and schools throughout the county, OFN launched residential service in 2019 and is now serving 2,500 residential subscribers in four city neighborhoods.

“We did four pilot neighborhoods. Our target goal was to have a 30 percent take rate in each neighborhood. In the largest neighborhood (the Highlands neighborhood) with a thousand homes, we have a 42 percent take rate. We still have a challenge in one neighborhood (Happiness Homes) with about a 10 percent take rate that we think is mostly an educational challenge,” Ocala Fiber Network Director Mel Poole told us in a recent interview.

After deploying 800 miles of fiber, overhead and underground, Poole said, OFN is seeing “steady, methodical growth” of its residential subscriber base “mostly by word-of-mouth” while they continue to sign up new business customers. And, he said, from a financial perspective “we are still in the black.”

OFN Powers Through Pandemic

The network really showcased its value with the onset of the pandemic. Besides having the capacity to handle...

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Posted July 20, 2021 by Maren Machles

Since the passing of the Tennessee Broadband Accessibility Act (TBAA) in 2017, the state has poured more than $100 million into connecting its most rural communities, and more than 20 electric cooperatives throughout the state have spent the last four years making their way into the broadband business. 

Back in 2016 and 2017, Sequachee Valley Electric Cooperative (SVEC), along with many other electric cooperatives, advocated for the right to build fiber-to-the-home (FTTH) networks out to their memberships in the most rural parts of the state. When TBAA passed through the state legislature, removing major barriers for cooperatives to build out their own networks, SVEC got to work.

Today, 23 electric cooperatives in Tennessee have launched their own broadband projects, including SVEConnect, a broadband subsidiary of SVEC offering FTTH that has connected more than 4,400 members across Marion County. 

From Electrification to Connectivity

SVEC was formed in 1939 to address the broad gaps in access to electricity throughout the rural areas surrounding Chattanooga, Tennessee in Bledsoe, Grundy, Marion and Sequatchie counties. When the cooperative was first established, the nonprofit’s leaders would frequent community events at churches and neighborhood gatherings, keeping their fingers on the pulse of community needs. The cooperative began offering an essential service: electricity.

More than 80 years later, a new disparity in service was emerging: members in SVEC’s service area were not receiving the same high-speed Internet options that were offered in urban areas around the state. 

A problem remained, however. In Tennessee, broadband wasn’t listed in the state statute definition of the “community utility services” cooperatives were allowed to...

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Posted May 24, 2021 by Ry Marcattilio-McCracken

Join us on Thursday, May 27 at 5pm ET/4pm CT with a special Financing Edition of the Connect This! show, with co-hosts Christopher and Travis Carter (USI Fiber) joined by Doug Dawson (President, CCG Consulting) and Kim McKinley (CMO, UTOPIA Fiber). The group will dive into the numbers and talk about the economics that make networks succeed. They'll talk about the different models to broadband buildouts, types of financing available to municipalities and small private ISPs, grant programs, the factors that drive healthy take rates, and economies of scale.

The show will begin on Thursday, May 27 at 5pm ET/4pm CT.

Subscribe to the show using this feed, or visit ConnectThisShow.com

Email us broadband@muninetworks.org with feedback and ideas for the show.

Watch here, or below.

Posted May 4, 2021 by Sean Gonsalves

As the oldest son of the legendary folk singer Woody Guthrie, Arlo Guthrie — the Town of Washington, Massachusetts’ most famous resident — built a name for himself as a singer-songwriter by letting folks know, “You can get anything you want at Alice's Restaurant.”

But if you ask the town’s Broadband Manager Kent Lew, there was one thing that was not on the menu in Washington before last year: high-speed Internet connectivity.

That’s no longer the case as the small town of Washington (pop. 549) has been on the vanguard of rural communities in the hill towns of the Berkshires that have built out (or are in the process of building out) Fiber-to-the-Home (FTTH) networks to bring gigabit speeds and affordable connectivity for residents for decades into the future.

The Pandemic: Curse & Blessing

“On the eve the Governor announced the (pandemic) shut down in March of 2020, our first Fiber Service Area was ready,” Lew recalled in a recent interview with us. “It was tremendous that we were able to do this just as people really needed it.”

As one of dozens of Western Massachusetts towns working in partnership with municipal utility provider Westfield Gas + Electric (which operates Whip City Fiber) to build broadband infrastructure, it was in 2015 that Town Meeting voters authorized a $770,000 bond issuance to finance half the construction costs of the $1.47 million network. The other half came from state grant funding.

The network design work wrapped up in 2018 with construction beginning in earnest the following year. The First Service Area was set to be lit up in March of 2020 and the entire rest of the network, which passes all 280 premises in town, was completed two months later in May of 2020 with construction crews having deployed 26.5 miles of fiber.

Still, the initial months of the pandemic lock-down, Lew said, was a “very frustrating period. Just...

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Posted April 20, 2021 by Sean Gonsalves

When he was a colonel in the Virginia Militia, George Washington is said to have visited “Craig’s Camp,” a mountainous frontier outpost in southwest Virginia near the border of what would later become West Virginia. After the Seven Years' War, farmers and tradesmen were drawn to the area, establishing a settlement known then as “Newfincastle.” Over the years, the “fin” was dropped and the town became New Castle, the seat of Craig County.

Today – with the Jefferson National Forest comprising half of the county, its scenic byways, access to the Appalachian Trail, old churches, and family cemeteries – Craig County and the surrounding region remains steeped in early American history. And now, thanks to the Craig-Botetourt Rural Electric Cooperative (CBEC), this corner of rural Virginia has established a forward-looking outpost of Internet connectivity, and a new fiber frontier that planners hope to expand across the seven counties that make up CBEC’s 650 square-mile service area.

The Bee Online Advantage

It was in 2018 when CBEC began to seriously consider building a broadband network to serve its 6,800 members because, as the co-op’s website puts it: “Our members are experiencing what originally created the electric cooperative in 1936 – a lack of service. They lacked electricity [85] years ago; now they lack high-speed Internet [access].”

That lack of high-speed Internet connectivity is becoming a thing of the past, at least for co-op members in Botetourt County who now have access to an emerging Fiber-to-the-Home (FTTH) service through a CBEC subsidiary known as the Bee Online Advantage.

“We have about 10 percent of our membership covered right now. To build-out the rest of the network (into the adjacent counties) will probably cost somewhere in the $60 million range,” CBEC CEO Jeff Ahearn told us in an interview.

One of the main drivers of the network’s construction costs, Ahearn said, is the “very low (population) density” of CBEC’s...

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Posted April 6, 2021 by Maren Machles

Talladega, AL has long been known as the epicenter of NASCAR, a sport synonymous with speed. In 1987, Bill Elliot set the fastest recorded time of 212.089 mph on that very track. 

Cars aren’t expected to start racing down the Talladega Superspeedway track until late April, but the Coosa Valley Electric Cooperative (CVEC) chose the location to announce the fittingly super fast speeds it expects to begin serving up with its new broadband subsidiary, Coosa Valley Technologies, last Wednesday. 

Unfortunately, many residents in Talladega County and surrounding counties have long gone without fast connectivity, with average speeds as low as 5 Mbps (Megabits per second)

CVEC often holds events at the Superspeedway, but for this event they wanted to make sure that since people were gathering, social distancing was possible. Also they wanted to communicate a message.

“It also served as a good backdrop for what we were trying to communicate, which was, we’re going to be provided the fastest broadband service in our area,” Jon Cullimore, CVEC Manager of Marketing and Member Services, told us in an interview as the cooperative prepares to embark on a fiber build intended to bring fast, affordable Internet access to everyone in its electric footprint over the next four years.

Driven by Membership

It all started in 2019 with feasibility studies conducted by two different firms. Both found a profound lack of broadband service throughout CVEC’s service territory, which is situated east of Birmingham.

When the studies were completed, CVEC quickly put together a comprehensive information packet for members to get educated before their annual meeting last September. The members were asked to vote on whether or not CVEC should form a new broadband subsidiary and embark on a new phase of life.

“We got the word out, and we had a record attendance at our annual meeting. We’ve never had that many members show up before,” Cullimore said. “I think we only had 12 ‘no’ votes out of all the [more than] one thousand people that showed up.”  

CVEC quickly got to work...

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Posted March 24, 2021 by Ry Marcattilio-McCracken

Franklin, Kentucky’s (pop. 8,400) electric utility is gearing up for an expansion of its partnership with Warren Rural Electric Cooperative Corporation (WRECC) with the help of $2.3 million from the recent FCC Rural Digital Opportunity Fund (RDOF). The new partnership will allow Franklin EPB to add new service to roughly 250 locations adjacent to a current project in the area.

The expansion project will add subscribers in the northeast region of Simpson County and nearby parts of the city of Franklin in the south-central part of the state, where the two entities are operating a two-area fiber pilot.

It represents the growth of a collaboration between Franklin EPB and the electric cooperative. In 2019, the two partnered up to deploy service with Franklin EPB leasing dark fiber from the cooperative and acting as service provider to “350 of its customers in northeast Simpson County and in an area on the southeast side of Franklin.” The project brought symmetrical 100 Megabit per second (Mbps) and 1 Gigabit per second (Gbps) options for $60 and $80/month to those locations and has brought service to a lot of happy members

 “Providing high-speed Internet [access] in rural areas has been and continues to be an important issue nationwide. Fortunately, we have been able to develop a successful model with Franklin EPB. We’re delighted to be able to expand our service in Simpson County immediately thanks to the RDOF funding,” said Dewayne McDonald, President and CEO of Warren RECC, at the announcement. He continued to emphasize that "part of our mission is to improve the quality of life for our members. This expansion represents a giant leap in progress for them, and we’re excited about the momentum. For the areas we didn’t win, we hope the companies that did win them will live up to their commitment to serve our...

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Posted February 5, 2021 by Ry Marcattilio-McCracken

Marketing plays a pivotal role in the success of community broadband at every stage of the game: from helping build political will during the initial stages of a project, to driving strong early take rates, to maintaining momentum down the road. Thoughtful and cohesive marketing, outreach, and community education efforts go hand in hand, and help broadband initiatives and networks weather the inevitable challenges that go with major infrastructure projects. 

On Episode 6 of Connect This!, Christopher and Travis Carter (CEO, US Internet) will be joined by Kim McKinley (Deputy Director and Chief Marketing Officer, UTOPIA Fiber) and Kyle Hollifield (VP of Business Development, Magellan Advisors), both veterans with years of experience. The group will talk about all that marketing entails, including what we can learn from those that do it right and what gets left on the table when it's not part of the discussion. 

Join us Monday, February 8th, at 3:30pm CST on YouTube Live with this link, or watch below.

Posted January 26, 2021 by Sean Gonsalves

Conway is right in the middle – in the middle of Arkansas with its utility company, Conway Corp, in the middle of beefing up its broadband network.

In this city of 66,000 – home to the information technology company Acxiom Corporation and three colleges – residents and businesses have long relied on Conway Corp for more than just electricity since the utility first launched its cable and Internet service in 1997.

Conway Corp, which has been Conway’s electric utility for the past 90 years, has a unique relationship with the city’s government. “We are different in the way we are set up as compared to many other municipal networks. We are set up as a non-profit. We lease the network and operate it on behalf of the city,” explained Conway Corp Chief Marketing Officer Crystal Kemp.

At the heart of the utility’s network management has been the on-going work to stay ahead of the curve.

Prepared for the Pandemic

“When we launched Internet services in 1997, upstream capacity wasn’t a concern and systems were built with the average homes (and) businesses per geographic area, or node, at 500. Today those numbers are less than 95 per node. That’s been achieved through physical changes in the network and changes in our engineering practices,” Conway Corp’s Chief Technology Officer Jason Hansen told us last week. 

Upgrades to the Hybrid-Fiber-Coax (HFC) network began to take shape in 2019 with the deployment of DOCSIS 3.1, allowing Conway Corp to double its downstream capacity. They also began upgrading equipment that paved the way for expanded use of the RF (Radio Frequency) spectrum to boost the network’s bandwidth. As of December 2020, about 50 percent of the upstream upgrade work had been completed with the remainder expected to be finished by the summer of 2021.

Currently, Conway Corp has 21,608 Internet service customers, which translates into a take-rate of 72% on the residential side and over 50% on the business side. AT&T operates its gigabit service in town, but there are no other traditional citywide cable systems in operation in the area.

The network upgrade, which began in earnest in 2019, turned out to be prescient planning as the emerging COVID-...

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