Although Tennessee is one of 19 states in the nation with laws that limit municipal broadband networks, it is also home to several of the nation’s premier municipal Fiber-to-the-Home (FTTH) networks, including EPB Fiber, a division of Chattanooga’s city-owned electric and telecommunications utility.

In the Volunteer State, municipal electric providers are restricted from offering Internet service on fiber networks beyond their service areas. But now, Knoxville, a city of approximately 187,000 residents and the home of the University of Tennessee, is aiming to get on the community fiber track and become the state’s next gig city.

Earlier this month, the Knoxville Utilities Board (KUB) Board of Commissioners approved a business plan that, if approved, will set the utility on a path to bring high-speed Internet connectivity to its more than 468,000 customers spread out across Knoxville, Knox County, and small parts of seven neighboring counties.

The plan has been sent off to the Tennessee State Comptroller office for review, one of the initial steps in the process to bring triple-play services (Internet, phone and TV) to its broadband-hungry customers.

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A Need for Speed

Indianola Municipal Utilities (IMU) in Iowa finalized its business plan for citywide Fiber-to-the-Home (FTTH) service earlier this month. The decision marks a shift in how residents receive services in the community; IMU will take over from current partner Mahaska Communications Group (MCG) and expand to offer triple-play citywide.

Up To Now

Indianola created its municipally owned broadband utility back in 1997 and invested in fiber-optic backbone infrastructure a year later. They used the investment to backhaul fixed wireless service beginning in 2002 and by 2006 had developed a partnership with MCG. Expanding fiber to residents didn’t start until 2010 and two years later, MCG began offering triple-play services within certain areas of the city. Last year, the community commissioned a feasibility study to examine the possibility of using existing fiber resources to all premises in Indianola.

Under the current agreement between IMU and MCG, wholesale rates for residential connections are $30 per month and $100 per month for commercial connections. The feasibility study determined that the current rates “did not support expansion” to the entire Indianola community.

Trustees Say OK

Under the business plan approved by the Trustees at the May 8th meeting, IMU will step into MCG’s shoes and will buy out MCG’s existing 596 customers. IMU will be the FTTH retail services provider, offering triple-play of Internet access, VoIP, and IPTV. The network will work with Cedar Falls Utilities (CFU) on video services, connecting at the Des Moines regional data facility in order to reach them. IMU will have the opportunity to tap into about 7,350 potential residents and businesses in addition to MCG’s current customers.

The plan for expansion divides the city into 26 service areas but subscribers need to sign up early in order for the utility to connect their home. People who participate in early sign up will all have services activated at the same time. IMU has proposed rates for different services including:

Last week, the city of New Orleans, through the Foundation for Louisiana (FFL), released a Request for Proposals (RFP) in its search for technical expertise to provide a fiber-optic network design and services related to its construction. Proposals are due October 24th.

The Vision

The Institutional Network (I-Net) design vision encompasses the entire city and will also provide wireless services. It will serve traffic light and advanced camera systems, streetlights, in addition to Internet, VoIP, video conferencing, and a list of other services cities use on a regular basis. From the RFP:

Ultimately, this new fiber network will help meet New Orleans’ goal to serve city-owned and operated buildings and facilities located throughout the 350-square mile city. This new network will improve services to residents, support implementation of Smart City applications and assist the City to achieve cost efficiencies in daily operations while helping disadvantaged residents to bridge the digital divide.

As part of this project, high-speed Internet access may also be offered for public use in city-owned or supported facilities like parks, libraries and New Orleans Recreation Development Commission (NORDC) centers. The City imagines working with community organizations to offer new services such as digital skills training in these spaces. Additionally, this project will explore design options that allow the network to be leveraged for future potential public private partnerships.

A Number Of Tasks To Tackle

Harford County, a mixed suburban and rural area in northeast Maryland, flipped the switch in late May on its Harford Metro Area Network (HMAN). The network includes 160 miles of fiber bringing high speed broadband to 150 sites, including all area schools, fire stations, libraries, and county and municipal buildings.

The project required $13.8 million in general obligation bonds from the county's capital improvement budget to construct four main fiber optic loops, with lateral connections leading to local anchor institutions. Not all planned facilities are connected yet, but construction will continue throughout the summer, as will the development of a business plan to determine how best to offer connections to local businesses and residences. Connections in the more rural northern area of the county will be wireless, due to the higher cost of building out to each home in lower density areas.

County Director of Information and Communication Technology Ted Pibil estimated that the county will save approximately $1 million per year by owning its own network, allowing it to cut ties with Verizon and Comcast. All of Harford County’s 54 public schools will see benefits as well, with increases in bandwidth of 50-100 times.

Harford County Sheriff Jesse Bane emphasized the public safety benefits of having a reliable communications network built with multiple contingencies in mind:

"This is going to provide the sheriff’s office with redundancy. That’s something we do not have at this time. It is something we have always considered a very precarious situation to be in… this will move us forward.”

While HMAN is funded entirely by county bonding, it builds on the backbone infrastructure of the OneMaryland Network, a stimulus-funded project that connects every county in the state. The press conference announcing the start of network operations can be seen here.

WSOC TV in Charlotte recently looked at Salisbury's four-year-old Fibrant network. Reporter Tenikka Smith investigated what a municipal network could do for Charlotte. Charlotte is also one of the communities working with Google in hopes of having it expand to them. That interest has led AT&T to consider updating its comparatively pathetic DSL services as well.

Smith spoke with a Salisbury small business owner who switched to Fibrant in 2010. Rick Anderson-McCombs of the Sidewalk Deli noted fast speeds and high quality voice service from Fibrant. According to Anderson-McCombs' mother, Angenetta Dover, the deli also saves $30 - $40 per month compared to past service with the local incumbent. Dover also uses the service at her home and notices a significant improvement:

"Even (the) lowest speed and slowest speed is super compared to what we used to have to do," she said.

Robert Van Goen from Rowan County's economic development coalition, Rowan Works, believes a municipal network could be a smart investment for Charlotte. The network tells potential job creators that a community is "prepared to do business for the next 10, 15, 20 years and compete in the global marketplace."

WSOC TV compared prices; they found Time Warner Cable and AT&T offered basic triple-play bundles - up to 6 Mbps download - for $79 per month. Upload speeds, the real test for businesses, are typically much slower. Fibrant's lowest tier triple-play bundle offered 20 Mbps symmetrical service for $97 per month.

Saving money for better service is always a winning strategy. Local businesses often consider other benefits from municipal networks; Anderson-McCombs told Smith his motivation reached beyond financials:

“It stopped us from really building the system by about a year,” said Finance Director Tom Kelly, “which put our revenue collections about a year behind.