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Longmont Gig Finds Many Takers - Community Broadband Bits Episode 161

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

This show is 24 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.

Transcript below.

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

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

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

Longmonters Loving NextLight in Colorado

Longmont's NextLight municipal broadband service is surpassing projected take rates, reports the Longmont Compass. The business plan called for 34 percent but as LPC builds out the FTTH network, the first phase of the project has achieved 45 percent.

In response to the positive response, LPC will speed up completion of the project. From the Compass:

“Our schedule was already aggressive, but we’ve heard repeatedly that our community is eager to receive high-quality, high-speed broadband,” LPC general manager Tom Roiniotis said. “So we’re accelerating the deployment.”

LPC now plans to “close the circle” from two directions at once as it completes its citywide buildout, rather than move around Longmont in one counterclockwise sweep. That means the final phase of the build is now scheduled to start in the first quarter of 2016 instead of the first quarter of 2017.

As we reported last fall, gigabit symmetrical service for $50 is available for customers who sign up within three months of service availability in their area. That rate follows customers who move within Longmont and transferable to to the next home owner.

Rural Utilities Building Broadband Networks - Community Broadband Bits Podcast Episode 109

If you have doubts that we can or will connect rural America with high quality Internet connections, listen to our show today. Alyssa Clemsen-Roberts, the Industry Affairs Manager at the Utilities Telecom Council, joins me to talk about how utilities are investing in the Internet connections that their communities need. Many of these utilities are providing great connections, meaning that some of the folks living in rural America have better -- faster and more affordable -- Internet access than residents of San Francisco and New York City. 

We discuss the demand for better Internet access and the incredible take rates resulting from investment in some of the communities that rural electric cooperatives are serving. UTC has a been a strong ally of our efforts to prevent states from revoking local authority to build community networks. Within UTC, the Rural Broadband Council is an independent operating unit. 

This show is 17 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.

Transcript below.

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

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Fibrant Signs Up 3,000th Customer, Increases Top Speed to Gig With No Rate Hike

Salisbury's Fibrant network recently signed on its 3,000th customer, reports WCNC from Charlotte. The publicly owned network also recently increased speeds for residential customers with no price hikes, reports BBP Mag. Households that were signed up for symmetrical 100 Mbps service for $105 per month will now have gigabit service for the same rate.

BBP Mag spoke with Dale Gibson, one of Fibrant's first gigabit customers:

“Generally when an Internet service provider gives a speed, it represents bandwidth, or a theoretical 'best effort' speed, not the 'throughput' or actual speed. My speed tests are consistently above 900 Mbps.” A network professional for over 20 years, Gibson added that typically even in the best test conditions, it is more common to see numbers in the 800s and, “Fibrant should be very proud of that 900 number.”

Other speed hikes include:

20/20 Mbps for $45 per month raised to 50/50 Mbps

30/30 Mbps for $65 per month raised to 75/75 Mbps

50/50 Mbps for $85 per month raised to 100/100 Mbps

The network has also revamped its video packages to include more channels, new HD options, and remote DVR. For a complete overview of Fibrant's new packages, visit their pricing page.

High Speed in the Blue Grass State: Russellville's Gig

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.

LightTUBe Financially Secure in Tennessee

Tullahoma Utilities Board's triple-play FTTH LightTUBe, began serving Tullahoma in 2009. The fiber network utility is paying off its city bond debt on schedule reports the Tullahoma News.

The network's income during the first four months of fiscal year 2014 is a positive $58,939. General Manager Brian Skelton spoke with Chris Mitchell in July 2013 and expressed confidence that that network will continue to operate in the black. The News reported on our podcast interview with Skelton and provided some recent updates:

With an estimated potential customer base of 9,000 in the TUB service area, LightTUBe services 3,201 fiber customers. That number is slightly ahead of goal (3,186) and represents nearly 36 percent market penetration against primary competitor Charter Communications.

Tullahoma deployed its network to encourage economic development. In 2011, we reported on J2 Software Solutions. The company located its headquarters in Tullahoma because LightTUBe offered fast, reliable, affordable service. 

According to the News article, expenditures on Internet service remain consistent while subscriptions grow. The Tullahoma Utilities Board (TUB) only recently approved a $7 rate increase for video service due to an increase in the cost of television content. When content rates rose in the past, TUB chose to absorb the increase but the cost of content continues to increase for all providers. Since 2009, TUB increased Internet service speeds five times without increasing prices. From the article:

”LightTUBe is in a very comfortable position from a financial perspective. Our biggest concern at this point is the unreasonable price increases that we (and others in the video business) are seeing from many of our channel providers,” said Skelton.

That comfortable financial position appears to rest largely on the shoulders of LightTUBe’s Internet service.

Cedar Falls Shows Long Term Muni Network Success: Community Broadband Bits Episode #75

Cedar Falls Utilities operates one of the oldest community owned networks in the nation. It started as a cable network in the 90's, upgraded to FTTH recently, and this year began offering the first citywide gigabit service in Iowa. CFU Communication Sales Manager Kent Halder and Network Services Manager Rob Houlihan join me for Community Broadband Bits podcast 75. We discuss why Cedar Falls Utilities decided to add cable to their lineup originally and how it has achieved the incrediblely high take rates it maintains. We also discuss the importance of reliability for municipal network and why they decided to transition directly to a FTTH plant rather than just upgraded to DOCSIS 3 on their cable system. Finally, we discuss its expansion into the rural areas just outside of town. Read all of our coverage of Cedar Falls on MuniNetworks.org. 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. Also, feel free to suggest other guests, topics, or questions you want us to address. This show is 20 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 Haggard Beat for the music, licensed using Creative Commons.

Utah's Spanish Fork City Network an Incredible Success

Back in 2010, we reported on the municipal network in Spanish Fork, Utah. Back then, the utility innaugurated its telephone service, which completed its triple play offering. With recent discussion around Utah's UTOPIA, Spanish Fork is getting a second look.

A Cimaron Neugebauer, Salt Lake Tribune article, highlights the success of the Spanish Fork Communications Network (SFCN). When we last reported on SFCN, 60% of residents subscribed to its cable television and high-speed Internet service. Two years later, the numbers are even higher:

Spanish Fork runs its own municipal network to deliver telephone, cable TV and Internet services. The network has deep ties with the community and is popular with residents, nearly 80 percent of whom are customers.

"It’s exciting to live in community that invests in this kind of thing," resident Bret Bills said.

A combination of bonding and borrowing paid for the $7.5 million network including a municipal electric utility substation. Construction began in 2001. The investment continues to pay off:

Today, the city currently makes about $1 million a year profit from the service and its bonds of $600,000 annually will be paid off in 2015.

The network is a combination of fiber and coax cable. As is often the case, the community acted to fill the gap left by the failure of the private sector, involving the community along the way. From the SFCN website:

SFCN offers services that no other company will provide and can only be implemented by the public sector. The Spanish Fork Community Network has been established to serve the residents of Spanish Fork, not the interests of some large corporation.  We have involved the citizens of Spanish Fork since the systems inception through a local Citizen's Ad Hoc Committee and it has ensured the system is design to meet the needs of Spanish Fork.

Unlike UTOPIA, SFCN is able to offer retail services, having been grandfathered in at the time of the crippling Municipal Cable TV and Public Telecommunications Services Act.

Salisbury's Fibrant Hits 1600 Subscribers

The muni FTTH network owned by the city of Salisbury, North Carolina, is finishing the calendar year with over 1600 subscribers. The network just began signing up customers 13 months ago.
“We already said in the first four years, we would not break even,” City Councilman Brian Miller said. “That’s not a surprise to anyone.” According to documents, the city expects Fibrant to become cash-flow positive after four years. The city billed the first Fibrant customers one year ago in December 2010. The city expects Fibrant to eliminate its deficit as more people sign up and revenues increase. The utility, which competes with private providers like Time Warner Cable, has a 13 percent market share, interim City Manager Doug Paris said, and is billing about $200,000 a month. “We’re growing in what is an extremely tough market,” Paris said. Paris said after the meeting Fibrant has about 1,600 customers. The utility needs about 4,500 to become cash-flow positive.
Salisbury has a new mayor coming into office, but he is a supporter of the network, as was the outgoing mayor, who spent a significant amount of time defending the community network from Time Warner Cable's attacks via the state legislature.

Greenville: The Texas Muni Cable Network

If you the take a look at our community broadband map, you'll see that Texas has only one citywide wired network owned by the public: Greenville. The story behind it is the same story we hear from just about every other community - but they actually spelled it out on their history page.
In 1999, Greenville, Texas' economic development leaders were unable to attract certain businesses and on the verge of losing existing companies due to a lack of high speed Internet. In response, Mayor Sue Ann Harting asked SBC for a commitment to deploy DSL. That request was denied. The city's cable franchise, Time Warner, also declined to commit to cable modem Internet deployment. Greenville found itself in a situation similar to one that many towns had faced years ago when railroads changed transportation. If the railroad was not routed through a town, that town just might die. What would happen to Greenville if the information superhighway did not come through the city?
Incumbent cable and telephone companies, their lobbyists, and associated "think tanks" like to claim that communities are somehow "duped" into building publicly owned networks. The truth is that just about every community wants to avoid the hassle of building a network but incumbents refuse to invest sufficiently to keep the community competitive for economic development and a high quality of life. They build networks when backed into a corner, not because they want to. Fortunately, all that hassle almost always pays off with far more benefits than problems over the long term as communities transition from depending on some distant corporation to solving their own problems locally. In fact, the results are often like that of Greenville:
Greenville citizens were not willing to take that chance. They took destiny into their own hands by amending the city charter to allow their revenue-only supported, municipally-owned electric system to build a hybrid fiber coaxial system to make high speed Internet available to everyone.