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Ames Tribune Editorial Board Wants a Gig

We continue to see more and more of what we might call "gigabit fever." This is not just a "me too" bubble centered around superfast Internet access. It is a recognition by more and more communities that the refusal of their cable and DSL duopoly to invest in next-generation networks is materially harming their future. Shortly after Cedar Falls announced it was the first community in Iowa with universal access to a gigabit courtesy of the municipal utility, the Ames Tribune made the case for a gigabit there also. Ames is home to the excellent Iowa State University (as is Cedar Falls, with U of Northern Iowa). I can praise them as long as I don't say anything about the Hawkeyes, rivals to my beloved Gophers. Unfortunately, the municipal utility in Ames is less than enthusiastic about following the Cedar Falls approach.
Yet Don Kom, director of the City of Ames Electric Department, tells us: “There has been no discussion at my level of bringing fiber from the city to our customers. We’re not having that discussion.” Certainly the city has many pressing issues and priorities to address, but super-fast Internet service ought to be high on its list. Besides the fact that it’s the wave of the future and we ought to try to keep pace with that wave, Ames has an impressive history of ambitious and innovative achievements.

New Yorkers Envious of Lafayette and Chattanooga? Yes.

In a recent New York Daily New article, Scott Stringer wrote about the Big Apple's tech employment trends. He noted that more tech related positions now come to the city but those jobs still tend to elude women and people of color. He suggests looking at New York's own workforce and offering better science and technology training. How do they do that? Improve curriculum, of course, but:

Ultimately, the new workforce is only as strong as the infrastructure that supports it. Today, fast, reliable Internet access isn’t a luxury — it is a core utility of the modern age.

Stringer notes the antiquated copper throughout the city and looks south for a model:

Lafayette, La., constructed a municipal fiber network in 2005, linking fiber to every home and business. In Chattanooga, Tenn., the city worked with the public electric company to build a fiber network that not only helped modernize the energy grid, but also linked 150,000 homes and businesses to a gigabit connection that is 20 times faster than connections in much of New York City.

London-based Foreign Direct Investment recently recognized Lafayette as one of the top 10 Small American Cities of the Future, in part due to its fiber infrastructure. Chattanooga has received multiple recognitions for it innovative municipal network.

Blair Levin Discusses Gig.U and More for Community Broadband Bits Episode #37

Blair Levin is Executive Director of Gig.U. Prior to that, he was in charge of developing the National Broadband Plan and long before that was Chief of Staff for the FCC during the Clinton Presidency. He's had a lot of experience in telecommunications policy but here we focus on what can be done to move America's communities forward. I asked Blair to join us for the show so I could ask him some hard questions about the Gig.U initiative, including the difficulty of achieving universal service and the tradeoffs around allowing entities not rooted in the community to own (and set the rules for) essential infrastructure. I also challenge Blair's preference for "private sector" investment, asking him what exactly that means. I hope our discussion is helpful in understanding the tradeoffs communities must make in choosing exactly how to improve Internet access locally. Though Blair and I disagree in some ways, I think we clearly illuminate why we disagree so the listener can make up his/her own mind. If you have some questions left unanswered or points you wish were made, note them in the comments below and we'll ask him to join us again. Read the transcript from 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 35 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment! Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to D. Charles Speer & the Helix for the music, licensed using Creative Commons.

CBS Discovers Chattanooga Has Nation-Leading Internet Network

Chattanooga has made the national TV news, with CBS doing a segment about America's best Internet network - owned and operated by the city of Chattanooga. They make a few minor mistakes - Chattanooga is one of several cities that have made gigabit available to everyone (including Bristol VA and TN; Morristown, TN; Lafayette, LA; and Burlington, VT. We track community-owned networks have have made some level. It is important to note that these networks do not offer a gig as the basic tier. However, their starting tiers are incredibly competitive, often much faster than the higher tiers of competing networks. This video is no longer available.

Atlanta Writer Looks to Chattanooga, Fears State Bill to Prevent Internet Investment

Chattanooga continues to receive attention because of the incredible community owned network they built for themselves. We recently came across an article from Tom Baxter of the Atlanta SaportaReport. In his article, Chattanooga: Eating our lunch in liveability, Baxter expresses the envy he feels as an Atlantan as he considers the way Chattanooga has transformed itself. From the article:

Yes, Chattanooga. Seldom do we think of our neighbor across the Tennessee line as much of a competitor. When they built an aquarium, we just built a bigger one. But for nearly three decades, since a group of civic leaders got together in 1984 and committed themselves to doing something about Chattanooga’s image as the dirtiest city in America, and in the view of some the dullest, they have been eating our lunch on the playing field of liveability.

Baxter mentions Georgia's HB 282, a bill we are following closely, and notes how its passage would drive more distance between livability in Georgia and the increasing quality of life in Chattanooga:

Chattanooga’s broadband system, the fastest in the Western Hemisphere,  could run at a gigabyte a second, if anybody could really use that kind of speed. Meanwhile, in Georgia, there’s a bill currently proposed which would prohibit public broadband carriers like the one in Chattanooga from expanding into any area if even one consumer in an entire census block has private broadband service of 1.5 megabytes a second or larger. (A gigabyte is equal to 1024 megabytes.)
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Having a fiber-optic broadband system like Chattanooga’s  in 2013 is like having an airport like ours was in 1963. And in 2057, given recent climate projections, having several decades of experience in energy efficiency and green growth will be priceless.

We ignore this at our peril. Cities we used to ignore, like Chattanooga and Greenville, S.C., have made enormous strides over the past few decades because they’ve tried harder. That’s what they used to say about Atlanta.

We are glad to see that Tom gets it, but we had to offer a gentle correction in that network speeds are typically measured in megabits, not megabytes. His analysis is spot-on, just a bit of word confusion.

Chattanooga's Network On Knoxville News

We recently came across a news report from Knoxville's WBIR.

The video touches on how the city has gone from a town that used to rely on the choo-choo to a metropolitan wonder that flies over fiber optic cables. Walter Cronkite called Chattanooga the "dirtiest city in America" but the network is transforming it into a technology capitol. Reporter Eleanor Beck focuses on the network's many customers and how they use their connections. Among those customers are an increasing number of businesses who seek the 1 gig service.

Beck spoke with Jack Studer, one of the founders of Lamp Post Group, a downtown incubator. Studer raved about the 1 gig network as a selling point to new businesses. Chattanooga's investment continues to fuel economic development and bring fresh entrepreneurs to town.

The story is a little under four minutes.

Chattanooga Fiber Network Reduces Cost of Electricity to All Customers

The Chattanooga Gig continues to benefit the community. We have covered some of the jobs that it has created, how it has lowered City expenditures and improved street lighting, and the recently announced speed increase without hiking rates. Now, EPB can also boast about how the network has significantly cut power costs.

Dave Flessner from the TimesFreePress.com reports that, thanks to fiber enabled smart grid technology, Chattanooga's electricity rates are 5 percent less than they would be without the network. From the article:

“The savings from the smart grid and the payments from the telecom division to our electric system are exceeding our costs and that is helping save money for every customer of EPB, whether you are signed up for any of our telecom services or not,” [EPB President Harold] DePriest told EPB directors Friday. “If we hadn’t made this investment, your electric bills would be higher.”

In addition to savings for every electric consumer, the network has been wildly successful for its video, phone, and Internet offerings.  There are 40,000 users to EPB and its telecom division generates more profit than its 73-year old electricity utility. Chattanooga is ahead of the game:

EPB Chairman Joe Ferguson said the [American Reinvestment and Recvery Act] stimulus funds helped speed the installation of the smart grid network from the original plan of 10 years down to less than two years.

“We’re exceeding the goals we set in our business plan,” Ferguson said. “We’ve stayed ahead of schedule; we’ve stayed on budget, and the number of customers who have signed up is better than we expected. The acceptance has been huge and that’s where the revenue comes from that we can plow back into our business and help keep our electric rates down.”

FCC Chairman Genachowski Once Again Praises Muni Broadband

Just this week, FCC Chairman Julius Genachowski highlighted the success of Chattanooga at a speech at VOX Media and SBNation on Winning the Global Broadband Race. From his speech (the entire speech in PDF format is available here):

First, as we said in our National Broadband Plan, we need “innovation hubs” with ultra-fast broadband, with speed measured in gigabits, not megabits.

There have been some positive recent developments on this front.

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In Chattanooga, the community-owned utility installed a 100% fiber-to-the-premises network, making speeds up to 1 gigabit per second available to all businesses, residences, and institutions

Genachowski also commented on Chattanooga's place in the competitive environment:

Promoting competition also means we need to keep a close eye on developments in places like Chattanooga and Kansas City to see what additional steps we can take to encourage game- changing investments by disruptive broadband competitors.

This is not the first time Chairman Genachowski has referred to municipal networks as a valuable asset. In his August comments on the Google Fiber roll-out, he referred to the importance of municipal infrastructure investments as a way to push the boundaries and compete globally.

"How a Municipal Network Can Help Your City" Archive Now Available

Last week, Christopher Mitchell of ILSR joined other broadband and municipal network experts to present the webinar "How a Municipal Network Can Help Your City" from the National League of Cities.

Christopher was joined by Kyle Hollified, VP Sales/Marketing, Bristol Virginia Utilities, Bristol; Mary Beth Henry, Manager, Office for Community Technology/Mt Hood Cable Regulatory Commission in Portland, Oregon; and Colman Keane, Director of Fiber Technology, EPB, in Chattanooga, Tennessee.

The group discussed common challenges and benefits communities experience when investing in municipal networks.

If you were not able to attend the September 13 webinar, you can now listen to the archived, hour-long presentation at the National League of Cities website.

EPB Fiber Increases Residential Speeds at No Extra Cost

Chattanooga's EPB Fiber just announced that current customers will receive a bump up in speed at no extra cost for its FI-Speed Internet service.

Residential customers on three separate tiers will automatically receive an increase in speed with no increase in price. The upgrade has already happened and customers can immediately take advantage of the new speeds.

According to an Ellis Smith article in the Chattanooga Times Press:

EPB, which offers gigabit fiber-optic Internet speeds across its Chattanooga service area, is upgrading customers to celebrate its third anniversary in the fiber-to-the-home market, said Harold DePriest, president and CEO.

“Enhancing our FI-Speed Internet was something we could do to celebrate, so we did it,” DePriest said.

This is the second time EPB has upgraded service to customers for free. In 2010, EPB upgraded 15 Mbps service to 30 Mbps service. Oh, and the prices haven't increased over the three years. Look back at your cable bills from Comcast, Time Warner Cable, or others, and you'll likely find that rate increases outnumber speed boosts.

New speed (and old rates) look like this:

$57.99 - 30 Mbps symmetrical increases to 50 Mbps symmetrical

$69.99 - 50 Mbps symmetrical increases to 100 Mbps symmetrical

$139.99 - 100 Mbps symmetrical increases to 250 Mbps symmetrical

As an added bonus to cutomers on the 1 Gbps symmetrical tier, their rates will drop from $349.99 to $299.99.

Fierce Telecom's Sean Buckly shared some perspective on the change:

While major cable MSOs, including local operator Comcast, have been responding to the higher speed FTTH offerings made by the likes of Verizon and their 300 Mbps tier, it's clear cable's best offerings don't come close to what EPB can offer.

Comcast's 105/20 tier is priced at $115 per month plus the price of the modem rental, while Chattanooga EPB customers can get 250 Mbps symmetric service for $139.