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Taxpayers Protection Alliance Trolling Vinton, Iowa

Vinton, Iowa, is on the road to Internet access self-reliance as the community of about 5,100 people continue to move forward with their Fiber-to-the-Home (FTTH) project. They’ve come under attack, however, from the Taxpayers Protection Alliance (TPA). The group is part of a web of organizations aimed at increasing corporate dominance and corporate concentration of power. TPA sent a letter filled with the usual twisted anti-muni spin, but this time went a step farther. A TPA senior fellow mischaracterized a quote from one of the industry’s most respected experts in order to push their harmful agenda.

Former State Representative Chip Baltimore did not run for re-election last year and now fills his days trying to prevent competition for the large incumbent ISPs. His methods include interfering in local communities’ decisions to improve connectivity. In an attempt to undermine the project and frighten community leaders out of supporting it, Baltimore sent a letter to Vinton Municipal Electric Utility Board Members in February.

The letter included several overused fallacies that permeate TPA literature and in other letters we’ve seen directed to decision makers in other communities. Baltimore also included a quote from Joanne Hovis from CTC Technology & Energy. The quote applied to take rates in another part of the country far away from Vinton. 

Farr Technologies, the consultants that performed the feasibility study for Vinton, estimated that iVinton could achieve take rates of 40 percent in the first year and grow to 62 percent within five years. Baltimore tried to use Hovis’s statement, which applied to a different community, to discredit Farr’s estimate. It’s true that these rates appear high, but folks in Vinton have shown that they believe the electric utility can provide better service than incumbents Mediacom or CenturyLink. Farr’s consultants considered the community’s survey results, expressions of dissatisfaction with current incumbents, and the electric utility’s stellar reputation with customers when estimating future take rates. 

New Report Dissects "Boondoggle Map"

Usually, we ignore the misinformation released by the Taxpayers Protection Alliance (TPA) but their latest efforts are so shady, we felt it was our responsibility to shine a light on its lack of validity and the organization's credibility. Our report, Correcting Community Fiber Fallacies: Taxpayers Protection Alliance Edition, takes a deeper look at the TAP's most recent attempt, which is filled with errors and a blatant disregard for the truth.

What Is A "Boondoggle" Anyway? This Map!

When we looked deeper, we discovered that TPA’s "Broadband Boondoggles: A Map of Failed Taxpayer-Funded Networks" is more misinformation than map. 

All of the basic errors in the map display a lack of attention to detail; our short report examines the deceitful characteristics of this resource. Our purpose in publishing this report is to caution community leaders and citizens who are investigating publicly owned infrastructure; the TPA is not a credible source.

TPA-sandyUtah.png

One of the more obvious errors: Sandy, Oregon, appears in Utah.

The map is also visually deceiving because it includes 213 communities, but only provides information for 87. Of the 213 on the map, the TPA only label 14 as "failures," which means less than 10 percent of the networks they document fit their own definition of "failure."

Clearly, TPA has proven that it seeks to spread any and all information it can find to discredit municipal networks, regardless of accuracy. Communities, public officials, or staff that research the option of publicly owned networks should review our report if they have ever considered the data in the Boondoggles Map.

Consider the Source

If your community is seeking better connectivity, thorough research will be the foundation of how you proceed. As part of your research, be sure to review the organizations that offer information.

From our report:

Waverly, Iowa, Exceeds Goals 2X

Last April, the small town of Waverly in central Iowa connected its first customers to test the new, citywide, Fiber-to-the Home (FTTH) network. After years of sub-par service from incumbent providers, the residents wanted something better. After securing funding, the municipal Waverly Utilities set to work on the Connect Waverly network. Services officially became available for everyone in July 2016.

Today, Connect Waverly stretches to all 10,000 homes and businesses in the town and provides high-speed Internet service of up to 1 Gigabit per second (1,000 Mbps) symmetrical to more than 1,200 residential and commercial customers. The Courier's Cedar Valley Business Monthly reports that Waverly's high take rate is double their six-month goal.

Jennifer Bloker, Waverly Utilities’ Director of Marketing and Public Information, told the Courier’s Cedar Valley Business Monthly, “We’re investing back into our community. We care about Waverly as a whole.”

Collaboration with Cedar Falls

Waverly Utilities had support from another utility, the long-running municipal network in Cedar Falls, Iowa. The two towns are collaborating and will share ownership of new equipment, such as an IPTV head-end system, to serve the customers on both networks. 

Waverly Utilities’ Director of Telecom Service, Jeff Magsamen, appreciates the support. Magsamen told the Courier:

“We have a good partnership with them. They’re always there to answer questions, they’ve helped us out a lot. Drawing on CFU’s [Cedar Falls Utilities] decades of experience has benefited us greatly.” 

Learn More About Waverly And Beyond

New Resource: Map, List Of Citywide FTTH Munis

It’s no small feat to plan, deploy, and operate a municipal citywide Fiber-to-the-Home (FTTH) network, but communities are doing it. We’ve put together a Citywide Municipal FTTH Networks list and a map, with quick facts at your fingertips. If your community is considering such an investment, this list can offer a starting point on discovering similarly situated locations to study.

The list is divided by state and each state heading offers a description of any barriers that exist and a link to the statute in question. Under each community, we also included relevant links such as to the provider’s website, coverage on MuniNetworks.org, and reports or resources about the network.

We used four basic criteria to put a community on our list and map:

  • The network must cover at least 80% of a city.
  • A local government (city, town, or county) owns the infrastructure.
  • It is a Fiber-to-the-Home network.
  • It is in the United States. 

Share the list far and wide and if you know of a community network that meets our criteria that we missed, please let us know. Contact H. Trostle at htrostle@ilsr.org to suggest additions.

Another Coop Story: Wiatel Wires Western Iowa

Iowa, known across the country for its agriculture, is known in other circles for its exciting community broadband projects. Earlier this year President Obama visited Cedar Falls to praise its municipal network and to support other efforts to improve rural high-speed Internet access. One of those efforts is Wiatel. This small telecommunications coop is beginning a $25 million project to upgrade its network from copper to fiber throughout its entire service area.

Fiber Connectivity

The cooper network that Wiatel uses now is sufficient for basic phone service, but upgrading to fiber will future-proof the network and provide better Internet speeds. The coop is based out of Lawton, a small town of about 1,000 people, but the coop serves an area of 700 miles. Wiatel hopes to start burying the fiber cables in the summer of 2016. Once the project gets started, officials from the cooperative estimate they will connect all residential and business customers to fiber within 24-30 months.

Wiatel is part of a long-growing movement as rural coops build fiber networks or upgrade to fiber to improve services for members. Just check out the Triangle Communications coop in Montana, the Paul Bunyan Communications coop in Minnesota, or Farmers Telecommunications Cooperative in Alabama. They’re providing next-generation connectivity at reasonable prices to rural communities often ignored by the large incumbent telephone and cable companies.

Coops: An Alternative

National Press Follows President Obama to Cedar Falls, Iowa

On January 14th, President Obama visited Cedar Falls, Iowa, to share his strategy to expand high-speed connectivity to more Americans, encourage competition, and galvanize economic development. Obama's plan centers around community networks and he announced that the next step will be eliminating barriers in 19 states that usurp local authority to invest in publicly owned infrastructure.

From his remarks [C-SPAN Video below]:

Today, I'm making my administration's position clear on community broadband. I'm saying I'm on the side of competition. And I'm on the side of small business owners... I'm on the side of students and schools. I believe that a community has the right to make its own choice and to provide its own broadband if it wants to. Nobody is going to force you to do it, but if you want to do it, if the community decides this is something that we want to do to give ourselves a competitive edge and to help our young people and our businesses, they should be able to do it.

The Obama Administration, through the Department of Commerce, recently sent a letter [PDF] to Chairman Wheeler to request the FCC use its authority to end state barriers that block local public investment. The Hill noted the letter and the President's speech together put gentle pressure on the FCC to take steps to restore local authority. The Hill also gave space to the cable industry, naturally opposed to restoring local authority after millions of lobbying dollars invested in passing anti-competitive legislation.

InfoWorld also pointed out cable industry opposition to the Obama proposal, noting that they were ready to mount a strong offense and will likely join Congressional Republicans to fight any roll-back of state barriers. A decision from the FCC on whether or not to change state laws in North Carolina and Tennessee is expected in February.

FACT SHEET: Broadband That Works: Promoting Competition & Local Choice In Next-Generation Connectivity

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In January 2015, President Barak Obama appeared in Cedar Falls, Iowa, to present his administration's plan to encourage local choice and competition through community networks. The President's strategy includes eliminating barriers to local telecom authority that now exist in 19 states. 

The Broadband That Works: Promoting Competition & Local Choice In Next-Generation Connectivity fact sheet, released by the White House Office of the Press Secretary on the eve of the appearance, provides info on several communities served by munis and the benefits they have enjoyed. The fact sheet also outlines five steps the administrations proposes to improves access, adoption, and investment.

For more detailed information, download the accompanying report by the National Economic Council and Council of Economic Advisors.

Community-Based Broadband Solutions: The Benefits of Competition and Choice for Community Development and Highspeed Internet Access

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Affordable, reliable access to high speed broadband is critical to U.S. economic growth and competitiveness. Upgrading to higher-speed broadband lets consumers use the Internet in new ways, increases the productivity of American individuals and businesses, and drives innovation throughout the digital ecosystem. As this report describes, while the private sector has made investments to dramatically expand broadband access in the U.S., challenges still remain. Many markets remain unserved or underserved. Others do not benefit from the kind of competition that drives down costs and improves quality. To help fill the void, hundreds of towns and cities around the country have developed their own locally-owned networks. This report describes the benefits of higher-speed broadband access, the current challenges facing the market, and the benefits of competition – including competition from community broadband networks. - Executive Summary

On January 13, 2015, President Barack Obama visited Cedar Falls, Iowa, to discuss his administration's plans to bring better connectivity to American residents and businesses. The centerpiece of his strategy involved removing state barriers to municipal networks and promoting local authority.

In tandem with that speech, the White House released this report. The report includes significant research from the Institute for Local Self-Reliance, including community profiles, economic data, and the role if municipal networks in competition.

Communities included in the report are: Chattanooga; Lafayette, Louisiana; Wilson, North Carolina; Scott County, Minnesota; Leverett, Massachusetts; and the Choctaw National Tribal Area in Oklahoma.

The report also outlines President Obama's ancillary initiatives to encourage local projects and provides significant data from the ILSR Community Broadband Map.

President Obama Speaks Against Barriers to Community Networks

When we started to hear rumors that the White House was investigating community owned networks, we were excited but not sure what to expect. I have to admit that seeing President Obama - the President of the United States - saying that Cedar Falls was smart to invest in themselves was much more powerful than I ever expected (see the video below).' President Obama will visit Cedar Falls on Wednesday to address his plans to increase access to affordable, high-speed broadband across the country. Tune in at 3:40 Eastern to the White House Briefing Room to watch the live event. The efforts of so many people to legitimize community networks are now paying off. Belittled by the big cable companies and their paid experts, we certainly were not destined to reach this point. But we are here - and everyone now recognizes that local governments can play an important role in ensuring we all have great Internet access. The White House has released a fact sheet with some information on what the Executive Branch will do to increase competition and restore local authority.

Cedar Falls Schools Get 1 Gig from Cedar Falls Utilities

As of December 2, students and staff in Cedar Falls schools have access to 1 gig Internet service from Cedar Falls Utilities (CFU). The WCF Courier reports that the Board of Education recently decided to switch from the Iowa Communications Network (ICN):

Doug Nefzger, the district's financial officer, said though Des Moines-based ICN has been a great partner for a number of years, it's always best to go with a local group.

"We may be paying a little bit more money but what this provides for our kids far outweighs the added expense associated with that," Nefzger said.

The District will pay CFU approximately $11,400 per year for gigabit Internet access to be shared between nine schools and three other District facilities. ICN provided 130 Mbps Internet service for $8,200 per year. The District will now have the capacity to provide a tablet or laptop to each student by 2015. The 1:1 goal is part of the District's five-year technology plan.

According to Rob Houlihan, Network Service Manager at CFU, each building is already connected via CFU fiber. As a result, District buildings will also enjoy a 1 gig WAN. Robust Internet access is important, but a high capacity WAN improves communication between facilities with no need to send data to the Internet. CFU provides fiber connections at no charge to the District, saving significant public dollars. Shane Paige, Supervisor of Technology Services at the Cedar Falls Schools noted via email:

That could easily cost us $5,000-$10,000 per month after discounts if we were leasing lines. We have been extremely fortunate in the fact that we have never been put in that position of having to deal with the extra costs of point to point connections for our buildings.

CFU also provides free cable television service to twelve District facilities, saving approximately $600 per month.