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Islesboro Brings Affordable Gigabit to Island Living in Maine

Islesboro Municipal Broadband (IMB) is about to celebrate its second birthday. Instead of two candles on a cake, the community has around 630 lit Fiber-to-the-Home (FTTH) subscriptions to mark the occasion. With more than 90 percent of the premises on the island connected to the network, the community can revel in its accomplishment as it considers the future.

Super Affordable, Super Satisfied

Residents pay only $360 per year to connect to the gigabit service, which has become part of the "fabric of the island" says Roger Heinen, Selectman who's part of the Islesboro Broadband Committee. Property owners also pay a modest increase in property taxes to satisfy the municipal bond the community issued to pay for deployment. In total, most property owners pay less than $85 per month for gigabit connectivity and the optional voice service from GWI. In addition to bringing fast and affordable high-quality Internet access to the community, Roger says that its reliability is so consistent that he thinks people have forgotten what the situation was like before the community network served the island community.

Subscribers report high satisfaction with IMB on biannual surveys. While there are still a few people in the community that have not connected to the IMB, he speculates that those people aren't interested in connecting in any way.

Saving Smartly

Every connection in Islesboro provides gigabit Internet access and, according to Roger, the decision to limit offerings to one tier was a way for the community to reduce costs. There's no need for complicated inventories of different types of gear, they know that every premise has the same gear and level of service, making billing easier and more streamlined, and they received a substantial discount because they bought so many of the same type of electronics. They knew that standardization would simplify and reduce costs and wanted gigabit service because it accommodates future innovation that demands more capacity.

Kaysville, Utah, Considering Broadband Utility

In Kaysville, Utah, the city is considering establishing a municipal fiber optic utility in the community of approximately 32,000 people. City leaders are considering the utility fee model, to enhance competition, inspire better rates, and encourage innovation in the community.

A Recurring Issue

The Salt Lake Tribune recently reviewed the plan in Kaysville, where the city council will soon vote whether or not to approve a $26 million bond in order to deploy a citywide publicly owned fiber optic network. Community leaders have determined that a Fiber-to-the-Home (FTTH) network is essential infrastructure for Kaysville. Comcast and CenturyLink serve most of Kaysville; some areas near the city must rely on satellite Internet access. City leaders want to lower prices and improve services by creating an environment for increased competition.

“As I was doing door-to-door campaigning, this was an issue that came up again and again and again,” said Kaysville Mayor Katie Witt, who’s a proponent of the city’s plan to create a fiber optic network. “We need to look down the road and plan for the future and make sure that we have the critical infrastructure in our community.”

The city has reviewed possible options and, after "one of the most vetted and open projects that we’ve worked on," decided that the utility model is best suited for Kaysville, said Councilwoman Michelle Barber.

“That’s what took 18 months of looking at was finding out that there are options, there are a lot of different options and ways to go about this," [Barber] said. “And after evaluating them all, going through a really long process, seeing feasibility, financial models and what’s the best fit, we found this one which we believe to be the best fit for Kaysville.” 

The Utility Fee Model

Kaysville plans to deploy an open access model, which will allow multiple Internet access companies to offer services through the fiber optic infrastructure owned by the community. They will use a utility fee to finance and maintain the infrastructure.

Columbus, Mississippi, Network Quashed Courtesy of Big Cable and Telecom Lobby

Local communities in the state of Mississippi have the legal authority to develop publicly owned Internet networks and offer broadband, or any other utility, to the general public. When it comes to bonding in order to financing deployment for broadband infrastructure, however, the law isn’t as cut and dry. In order to stay on the right side of the law, the community of Columbus, Mississippi, decided to obtain permission from the state legislature to issue bonds for a $2.75 million expansion of their existing fiber optic network. Things didn’t work out as well as they had hoped, thanks to powerful lobbying influence in Jackson.

Stuck in Committee

Rep. Jeff Smith is Chair of the House Ways and Means Committee and introduced HB 1741, which would have granted permission for the city of Columbus to issue bonds to fund the infrastructure for better connectivity. Smith, who is also a board attorney for Columbus Light and Water (CLW), filed the bill because past opinions from state Attorneys General conflict on interpretation of the law. Bond attorneys told the utility board that the safest way forward would be to approach the Mississippi State Legislature for permission to bond.

The bill was directed to the House Local and Private Committee, but never received a hearing before the committee deadline of March 28th. According to Smith, HB 1741 had necessary support in the House, but Senate leadership would not let the bill advance:

"We were told lobbyists from Comcast and the other big cable providers had sat down with (Lt. Governor Tate Reeves) and encouraged him to kill three similar bills," Smith said. "He's the president of the Senate so ... when we heard that we knew it wasn't going to make it." 

Phase Two for Rock Falls

After finishing its first phase of broadband build out covering businesses and industrial parks, Rock Falls, Illinois, will begin focusing on residential customers in early 2019. While residents living close to business areas will have early access to the gigabit fiber network, the city of 9,000 will use the fiberhood approach to reach its remaining residential areas.

Growing a Gigabit City

The plan to invest in citywide Fiber-to-the-Home (FTTH) began taking shape when Rock Falls residents became increasingly frustrated with the incumbent cable provider Comcast. Mayor Bill Wescott called for support for the project during his 2017 State of the City address, saying “The time is now to advance Internet in Rock Falls.” Later in April, the City Council approved the use of a $5.3 million general obligation bond issuance to fund the first phase of the build out, and an overall cap of $13 million for the duration of the project. The estimated cost of the project ended up being significantly reduced because the Rock Falls Electric Department (RFED) had already installed extra fiber-optic cable to connect substations as early as 2004.

By using GO bonds to finance their infrastructure deployment, Rock Falls departs from the typical funding approach. Most municipalities issue revenue bonds or employ interdepartmental loans and money they've saved from avoided costs when ending expensive leased lines to telecommunications companies. In recent years, other methods of funding fiber optic build outs have become increasingly popular as broadband infrastructure has obtained utility status in local communities.

Estes Park Local Media Encourages Board to Move on Fiber

During the February 2015 referendum, approximately 92 percent who voted on the measure, chose to opt out of SB 152 in Estes Park. The mountain town of 6,300 has experienced catastrophic outages dues to ice and flooding, including in 2016 and in 2013 when telecommunications were wiped out for days.

Estes Park has their own electric utility and is part of a regional public power initiative that involves the Platte River Power Authority (PRPA). As a result the town has a fair amount of publicly owned fiber optic infrastructure in place. City officials hired consultants to offer recommendations and by 2016 had entered a design engineering phase of a possible Fiber-to-the-Home (FTTH) initiative. Experts estimated the cost to connect the community to be around $30 million and recommended a retail model.

At their recent November meeting, members of the Board of Trustees unanimously voted to allow Estes Park staff to issue a Request for Proposals (RFP) to find broadband bond underwriters. To keep the momentum moving forward, the Trail Gazette published an editorial encouraging Estes Park leadership to continue the process and to bring better connectivity to the community:

…Estes Park needs more action and less discussion for greater access to information and global connectivity. No longer is accessible, fast and reliable broadband Internet a luxury; it is a necessity in our digital world.

Editors stressed that Longmont, Fort Collins, and Loveland have either deployed or are in the process of creating gigabit networks and that Estes Park will be left behind in many ways if forced to depend on the same slow, unreliable Internet access that has left them stranded in the past.

Neighborly Announces 35 Communities Joining Accelerator Program

Earlier this summer, we talked with Jase Wilson and Lindsey Brannon from Neighborly, the investment firm that uses online investing to allow individuals to invest in publicly owned infrastructure projects, including broadband networks. Jase and Lindsey described a program they had just launched, the Neighborly Community Broadband Accelerator. 

A Boost for Local Broadband

The program is designed to help local communities with necessary tools and financing from the start of their project planning. The Accelerator will provide mapping and community engagement tools, help from experts who will share best practices, and access to industry partners, such as ISPs and engineers. In addition to these and other information perks, communities accepted to the program will have the benefit of Neighborly financing at a competitive, below industry rate cost.

Applications were due by September 28th and more than 100 applications indicate that, more than ever, local communities are interested in taking action to improve connectivity. These 35 communities were accepted into the Broadband Accelerator Program:

Court Confirms Texas Home Rule Authority to Build, Finance Community Network

Located only 30 miles east of Houston, it’s hard to believe that Mont Belvieu, Texas, ever had poor Internet access. Faced with complaints from residents and businesses, city officials decided to deploy fiber and bring fast, affordable, reliable gigabit connectivity directly to the community via MB Link.

How to Fix the Problem

While it’s not far from the center of a large metro area, Mont Belvieu still maintains a rural character. The town’s history is based in the oil and natural gas industry, which began in the early 1900s. As City Manager Nathan Watkins told Christopher Mitchell in episode 326 of our podcast, approximately 85 percent of natural gas liquids in the U.S. travel to Mont Belvieu for processing. With more than 10,000 miles of pipeline within their salt domes, the town of 8,000 has become a centerpiece of oil and natural gas processing.

Before MB Link, the community dealt with a patchwork of services offered by several different providers. Even though more than one provider operated in town, they didn’t compete with each other. Without competition, ISPs had no impetus to improve services. Residents complained about DSL download speeds of 1.5 Megabits per second (Mbps) and cable Internet access download speeds topping out at 5 Mbps. There were even premises that could not obtain Internet access because ISPs reported saturated networks and were not willing to make investments to serve more subscribers.

In 2016, a feasibility study in Mont Belvieu revealed that 60 percent of residents and 79 percent of businesses felt that local Internet access wasn’t adequate for their needs. In the same survey, 90 percent of residents and 100 percent of business respondents opined that high-speed Internet access is an essential service in the same manner as electricity and water.

Apply by September 28th to Accelerate Your Muni Project

In episode 320 of the Community Broadband Bits Podcast, aired on August 28th, we shared news about an opportunity regarding funding local Internet network infrastructure. Jase Wilson and Lindsey Brannon of Neighborly announced that the online investment platform had recently launched the Neighborly Community Broadband Accelerator. Applications to participate in the program close on September 28th, so we want to encourage local communities, Internet Service Providers, or community advocates interested in new ways to develop better local connectivity to check out the program.

More Than Money

For a quick recap, Neighborly is a technology company that provides an online investment platform to give individuals and entities the ability to invest in projects funded with municipal bonds. The projects are publicly owned and centered on improving the quality of life on the local level. Project areas include transportation infrastructure, schools and libraries, housing, and utilities. The accelerator program specifically aims to help local communities develop their own open access municipal networks to improve connectivity and encourage competition for broadband on the local level.

As Jase and Lindsey described in our interview, the numerous moving pieces associated with developing a fiber optic municipal network create a layered and complex project; a key element is financing. While it’s often left as a later consideration — one that makes or breaks the project — chances of success improve when community leaders address funding early and throughout projects development. 

One of the goals of the Accelerator Program is to help local communities interweave funding throughout the process. The program also provides additional resources throughout the process to help ease broadband network development. Applicants accepted to the program pay no fee and receive:

Neighbors Investing Through Neighborly - Community Broadband Bits Podcast 320

Plenty of local communities are interested in the possibilities of creating publicly owned Internet infrastructure but pause when it comes to funding. This week on the podcast, Christopher interviews Jase Wilson, CEO, and Lindsey Brannon, Head of Public Finance, from Neighborly. The firm is working with local communities and using an innovative approach to financing publicly owned infrastructure projects, including broadband networks.

Neighborly provides an online investment platform that allows individuals to invest in projects funded through municipal bonds. In addition to more traditional projects suited to the muni bond market, such as transportation, education, and housing, Neighborly is working with local communities that want to develop open access municipal networks. In this interview, Jase and Lindsey describe how the open access network fits so well with the firm's philosophy.

In addition to helping drum up the capital for muni deployment, Neighborly sharpshooters recognize that the opportunity for individuals to invest directly in a municipal project in their community will help the project ultimately succeed. After all, the investment is about more than turning profit when it’s providing fast affordable, reliable connectivity in your own hometown.

Lindsey and Jase discuss some of their past work and talk about the new Community Broadband Accelerator program that offers additional tools to communities investing in open access fiber networks. Specifics about the program are available on the Neighborly website and during the interview we get to hear more about the advantages of participating in the Community Broadband Accelerator program.

This show is 36 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 Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

New Hampshire Sets the Example: Expands Local Authority for Broadband Investment

On May 30th, New Hampshire Governor Chris Sununu signed SB 170, a bill local community leaders had watched for more than a year. The measure will allow municipalities to bond for publicly owned Internet network infrastructure. Advocates, local elected officials, and citizens have been seeking the authority for years. SB 170 may raise some questions as it's implemented, but the bill is significant because it symbolizes this state's decision to expand local authority for broadband investment, rather than limit the power of local communities.

Read the final version of SB 170 here.

A Better Measurement

As we reported more than a year ago, SB 170 sought to make changes in existing law by allowing local communities to bond for Internet infrastructure. The bill sat in committee until last November, when it was amended and picked up again. The final version of SB 170 allows communities to bond for projects that will connect premises that don’t have access to broadband as defined by the FCC — 25 Mbps download and 3 Mbps upload.