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Open Access Networks - Episode 4 of Connect This!

On Episode 4 of Connect This! Christopher is joined by Jeff Christensen (President, EntryPoint Networks), Dane Jasper (CEO and Co-Founder, Sonic), and Travis Carter (CEO, US Internet) to talk about open access models, and the challenges and opportunities they present. During the discussion they discuss barriers to entry, differentiation, dark fiber, and why we don't see more cities pursuing projects like this. They also have a little fun sharing what they think the FCC has gotten right and wrong over the last 4 years, and what Comcast's recent announcement about bandwidth caps will mean for users and competing Internet Service Providers (ISPs).

Mentioned during the episode was Chris' conversation with NetEquity Networks' Isfandiyar Shaheen and Althea Networks' Deborah Simpier about innovating financing models for expanding fiber networks.

Subscribe to the show using this feed

Read the transcript for this episode.

 

Chicago And Denver Voters Say Yes to Expanded Broadband Options

As voters went to the polls to cast ballots in the 2020 Presidential election, in two major metropolitan areas residents overwhelmingly approved ballot questions to move forward on exploring how to expand broadband access in their respective cities.

In Chicago, nearly 90% of those who cast ballots said “yes” to a non-binding referendum question that asked: “Should the city of Chicago act to ensure that all the city's community areas have access to broadband Internet?" With 2,034 of 2,069 precincts counted, 772,235 voters out of 862,140 cast their ballots in favor of that question.

That vote came on the heels of the roll out of “Chicago Connected,” a new initiative to bring high-speed Internet service to 100,000 households that do not have reliable access within the nation’s third-largest school district.

Meanwhile, in Denver 219,435 voters, or 83.5% of the city’s electorate, cast ballots in favor of question 2H, which allows the city to opt out of the state’s 2005 state law referred to as SB 152. That law prevents municipalities from building or partnering for broadband networks. Approval of the ballot initiative also grants the city “the authority but not [the] obligation to provide high-speed Internet access." Two other Colorado communities – Berthoud and Englewood – also voted in favor of similar ballot questions, asking voters if they want to opt out of SB 152. In Berthoud, 77.3% of voters cast ballots in support of the question. In Englewood, the opt-out question passed with 79.4% of voters in favor, which will allow the city to provide Wi-Fi service in city facilities.

Kaysville, Denver, Chicago, Among Cities Voting on Broadband

In the fall of 2019, when the Kaysville City Council was poised to move forward on a $26 million, 30-year bond to build a municipal-owned fiber optic network, the COVID-19 pandemic had not yet turned life upside down.

Although city officials and advisors had spent 18 months thoroughly exploring options in a planning process City Councilwoman Michelle Barber called “one of the most vetted and open projects that we’ve worked on,” a group known as the Coalition for Responsible Kaysville Fiber created enough pushback to convince the City Council to shelve the plan and defer to a citizen-led ballot initiative.

On Tuesday, Nov. 3, Kaysville voters, in this city of approximately 32,000, will not only cast their ballots in the Presidential election, they will also be asked if they want the city to move forward with Kaysville Fiber. If the ballot initiative passes, it will allow the city to deploy a Fiber-To-The-Home (FTTH) network. 

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Currently, Comcast and CenturyLink are the Internet Service Providers (ISP) for most of Kaysville with some areas near the city relying on satellite Internet access. As has been the case in hundreds of communities across the nation that have built out fiber networks, Kaysville city leaders are looking to build a “last mile” fiber network to lower prices and improve services by creating an environment for increased competition.

Proponents are hoping the new “normal” in the face of the on-going pandemic — with the massive rise in virtual classrooms, remote work from home, telemedicine, and online commerce — will help voters see Kaysville Fiber as necessary infrastructure. 

Multnomah County, Oregon Study Shows That a Countywide Network Can Be Done

Along the banks of the Columbia River, Multnomah County (pop. 813,000), Oregon is considering a publicly owned Fiber-to-the-Home (FTTH) network after being handed a study more than a year in the making. The report estimates that a countywide network reaching every home, business, and farm in a five-city area would cost just shy of $970 million, and bring with it a wealth of savings and other benefits to the community it serves.

Origins

The study has its origins in a 2017 push initiated by an advocacy group called Municipal Broadband PDX which has sought more affordable and equitable Internet access in the region. In 2018, the County Board of Commissioners agreed that it should be explored and approved the funding of a study, with the city of Portland and Multnomah County each contributing $100,000 and the remaining towns of Fairview, Gresham, Troutdale, and Wood Village joining the effort to collectively contribute an additional $50,000 for funding. Over the next year, CTC Technology and Energy conducted a comprehensive survey, analysis, and evaluation, and the results were delivered at the end of September.

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Mainers Commit to Broadband Expansion with $15 Million Internet Bond Issue

Maine’s High-Speed Internet Infrastructure Bond Issue, which we first wrote about a month ago, has passed. 76% of voters said yes to Maine Question 1, which authorizes the issuance of $15 million in general obligation bonds to fund projects which will expand broadband access for residents in underserved and unserved areas. Underserved areas are those where less than 20% of the households have speeds of 25 Megabits per second (Mbps) download and 3 Mbps upload. Unserved areas are those where broadband service isn’t offered by provider. The northern and eastern parts of the state suffer from particularly poor connectivity options. The money will join $30 million in additional federal, local, and private money, for a total of $45 million to be invested in the near future.

Where We Go From Here

The ConnectME Authority will administer the grants. It’s a significant injection of funds for the broadband authority, which has given out slightly more than a million dollars a year over the last ten years to build mostly last-mile connections and bridge the broadband gap. Passing the measure makes Maine the first state to bond to fund broadband projects, serving as an example to other states looking for avenues to do the same. 

As it stands, somewhere around 83,000 households lack access, though this doesn’t include those families who can’t afford to subscribe. The impact of this digital divide has become even more starkly outlined over the last six months, and since the future of telework relies on affordable, reliable, high-speed connections, states that don’t commit resources to the problem will fall further behind. 

A Concerted Effort

Iowa Update — Pella Finances, Vinton Goes Live, Fort Dodge Studies, and More

Iowa is home to many community networks, from co-ops to muni cable, fiber, and other technologies. Three communities in the state have just recently made important announcements about their plans, and several others are moving forward with networks. There is so much happening in Iowa right now that shows potential for other states that don't limit competition.

There is a long history of local broadband excellence in Iowa for new networks to draw on. Cedar Falls Utilities was just recognized as the fastest ISP in the nation by PCMag. It has well over 20 years of success, but recent years have seen it sharing its expertise and facilities to lower the cost for other communities to build networks without reinventing the wheel. Local private Internet service provider ImOn is also a partner for these networks, offering voice services.

Many of these networks being built will be able to share services and lower their costs by being on the same ring to get some scale benefits despite being smaller communities. I remember many years ago when Eric Lampland of Lookout Point started pushing for this ring, and I am dumbfounded why we don't see more of this cooperation among munis and small providers in other states. Thanks to Eric and Curtis Dean of SmartSource Consulting who helped me with background for this Iowa update.

We have a brief mention of West Des Moines's recently announced partnership with Google Fiber in here, but we're finishing a longer post that solely examines their approach. Between this, that, and our Coon Rapids podcast this week, it is officially Iowa week on MuniNetworks.org!

Vinton

Vinton's new municipal fiber network has just started connecting subscribers, leading to a memorable testimonial in the local paper, Vinton Today:

Maine's Proposed Bond Issue Offers Significant New Funding for Internet Infrastructure

In less than a month Maine will hold a Special Referendum election which includes a measure with significant ramifications for Internet access in the state. On July 14, Mainers will be asked to vote Yes or No on Question 1, a $15 million Internet Infrastructure Bond Issue designed to bring high-speed service to the approximately 85,000 households in unserved or underserved areas.

The $15 million in general obligation bonds would go to the ConnectME Broadband Authority, which administers the state's broadband grants, to provide funding for projects with an emphasis on connecting unserved or underserved areas. This new funding would leverage an additional $30 million in matching federal, private, and local investments.

If voters approve the referendum, Maine will become one of few states (if not the first) to bond to fund broadband deployment, taking advantage of current historically low interest rates.

Meeting a Need

Tens of thousands of homes and businesses in Maine fall short of even the slowest upload and download speeds defined by the FCC as modern broadband. Those in the northern two-thirds of the 35,000-square-mile state deal with particularly poor conditions, with either no connectivity options or maximum download and upload speeds of 10/1 Megabits per second (Mbps). The ConnectME authority has given out $12 million over the last decade to fund projects, with an emphasis on last-mile connections, but broadband gaps still remain.

Nancy Smith, Executive Director of GrowSmart Maine, told WABI:

We know that access to high speed internet is critical for students to access education, even when they're at home. And for all of us to access medical care through tele-health. Investments in broadband are also critical to growing the economy and creating jobs, particularly in rural areas.

Mainers Weigh In

New Hampshire Towns Join Chesterfield, Partner With Consolidated Communications for Fiber Builds

In the Monadnock Region of New Hampshire, at least six towns have voted to issue bonds to construct fiber networks in partnership with regional incumbent telephone company Consolidated Communications. Chesterfield approved the measure in April 2019 and recently executed a public-private partnership contract with Consolidated.

Chesterfield was the first municipality in New Hampshire to take advantage of Senate Bill 170, signed into law in 2018, which allows municipal governments to bond in order to build broadband infrastructure in places not served by commercial broadband providers. Over the last year, the towns of Dublin, Harrisville, Rindge, Walpole, and Westmoreland have also voted to bond are also in the process of bonding, or have already bonded (Rindge), and are finalizing public-private partnership contracts with Consolidated to develop Fiber-to-the-Home networks. The towns plan to issue bonds in July and should have finalized contracts by that point.

New Hampshire’s rural areas have struggled to connect rural residents to adequate broadband, and these towns are undertaking these partnerships to improve currently insufficient connectivity. Part of the challenge has been the rotating series of incumbent telephone companies, from Verizon to FairPoint and now Consolidated. Large publicly-traded telephone firms have difficulty justifying investments in rural areas when the same amount of capital could offer a much greater return in higher-density cities. But Consolidated is developing a new model with these towns that may work to everyone’s benefit.

Another Fiber Optic Project in Texas Aims to Connect Residents and Businesses

According to a recent article in Bluebonnet News, the City Council of Dayton, Texas, has approved a $13.7 million bond to operate its own fiber optic system. The city aims to make residents and businesses more self-reliant and less dependent on big cable companies.

Located 15 miles east of Houston, Dayton has a population of nearly 8,000 people. Once the 70 mile fiber network is complete, it will meet the connectivity needs of Dayton's residents and businesses now and well into the foreseeable future.

Slow Start in Texas

Texas is one of 19 states that have laws restricting cities from offering their own telecommunications services to residents. In Texas, state laws prevent municipal networks from offering voice and video services, but they can still provide Internet access to households. Mont Belvieu became the first city in the state to deploy its own citywide fiber network, after successful court rulings clarified the city's authority to offer broadband access. Since the city of Mont Belvieu created its high-quality fiber optic network, MB Link, it has connected about half of its residents and has inspired other rural areas and towns in the country. Dayton, Texas, is one of those communities which shares Mont Belvieu's vision, as per the article from Bluebonnet News:

Like Mont Belvieu, the City of Dayton will provide the Internet service as another utility, like water and sewer service. Theo Melancon, City Manager, believes the cost of the service will be more affordable for Dayton residents and businesses.

Dayton Dreams of Speed

Medina County Fiber Network Expansion Meets Financial Milestone

In 2012, the Medina County Fiber Network (MCFN) first began offering fiber optic connectivity to businesses and community anchor institutions in the county. Jump forward eight years later and the network is now proving the case that Ohioans also want fast, affordable, reliable connections in the small communities where national providers aren't willing to upgrade.

Meeting a Goal

When we spoke with CEO David Corrado from MCFN in December 2019 for episode 386 of the Community Broadband Bits podcast, we learned about the new partnership between MCFN, Lit Communities, and Peak Communications. CEO Brian Snider and Chief Marketing Officer Ben Lewis-Ramirez from Lit Communities also participated in the conversation and the three explained how the partners were employing a community based model to expand the open access fiber optic infrastructure with private capital. 

The entity they created for the project is Medina Fiber and focuses on expanding the benefits of the network to residents in Medina County.

In a February 11th press release from MCFN, Corrado announced that the project has reached a key milestone. Monthly revenue from the network now equals the MCFN $100,000 monthly bond payment.

From the press release:

“This is a key metric that we’re pleased to reach as Medina County Fiber Network begins expanding our trusted network to homes throughout Medina County. It’s proof that the county’s investment in fiber infrastructure works well now, and positions our community for even more economic success and better quality-of-life.”