Which would you choose — a broadband subscription with download speeds of 15 Megabits per second (Mbps) or a much faster gigabit plan for the same price?

The choice is clear, and it’s one that low-income households in Hillsboro, Oregon, may soon make, thanks to the city’s planned municipal fiber network. Earlier this year, Hillsboro announced that its new broadband utility, HiLight, will offer gigabit connectivity for only $10 per month to qualified low-income residents. In comparison, Comcast’s Internet Essentials program provides low-income families in the city speeds of just 15 Mbps for roughly the same monthly cost.

Hillsboro isn’t the first community to leverage its publicly owned fiber network for digital inclusion efforts. Municipal networks across the country are providing low-cost connectivity, affordable devices, and digital skills trainings to their communities, bringing the educational, economic, and healthcare benefits of broadband access to more people.

Defining Digital Inclusion

Digital inclusion is the practice of ensuring digital equity, which the National Digital Inclusion Alliance defines as “a condition in which all individuals and communities have the information technology capacity needed for full participation in our society, democracy and economy.”

Broadband availability is only one of many “digital divides” that explain who is and isn’t connected. For instance, income and affordability also play a role. According to the Pew Research Center, adults with annual incomes of $75,000 or more are almost twice as likely to have broadband access at home than adults with annual incomes of less than $30,000. Among those without home broadband access, the high cost of a subscription is most commonly cited as the top reason why, Pew reports.

In the Internet access industry, large corporations typically fight to maintain their positions as monopolies. Even if they have no intention of serving certain communities, big cable and telecom companies work to prevent others from gaining a foothold, fearful that they may someday lose subscribers. On the other hand, municipalities that operate publicly owned networks often encourage, mentor, and collaborate with neighboring communities to get people connected. Now, EPB Fiber Optics in Chattanooga is partnering with municipalities and cooperatives interested in offering Internet access.

Working Past Restrictions

Tennessee still prevents municipal power utilities from offering telecommunications services beyond their electric service areas, but state law won’t deter EPB Fiber Optics from doing what they can. Recently, EPB Vice President of Marketing J. Ed Marsten spoke with Telecompetitor. “We’re partnering with some other municipal and cooperative providers to help them get into the business,” Marston said. “We’ve seen a ton of interest.”

EPB Fiber Optics is offering a range of services to potential utility partners as a way to bring better connectivity to more Tennesseans. In addition to consulting services, the utility may be able to provide transport to an Internet point of presence (POP) and offers tech support. When municipalities or cooperatives work with EPB and use Chattanooga’s staff, they can cut operating costs and reduce the time it takes to begin offering services.

In Massachusetts, Westfield Gas+Electric (WG+E) offers similar services to the nearby rural towns that lack high-quality Internet access. Westfield’s Whip City Fiber, however, is not precluded from offering Internet access via local public infrastructure. Like EPB, WG+E also offers consulting services, if municipalities choose to operate their own networks.

Publicly Minded Moves…So Many

Since 2011, PCMag has collected speed data and written about the country’s Fastest ISPs based on download and upload results. This year’s results reflect, once again, that locations with publicly owned broadband infrastructure contribute to communities’ ability to offer faster connectivity.

How They Did It

PCMag asked readers to use a special speed test developed specifically for this reporting that measured download and upload speeds. PCMag's Speed Index assigned to each ISP represented 80 percent download speed and 20 percent upload speed. Filtering out non-U.S. tests, they ended up with 256,016 tests that applied to the comparisons. If, however, a location (for state and regional comparisons) or ISP had fewer than 100 tests, the folks at PCMag did not consider it a contender.

While editors further broke down results so as to stack major ISPs against each other in a head-to-head comparison, they also looked at all the results in a general comparison. PCMag broke down the results further by region and city. For more details on the results, check out the full article.

Munis New and Not-So-New

FairlawnGig in Ohio made the list this year, adding a third municipal Fiber-to-the-Home (FTTH) network to the list. The city’s retail service began serving residents with gigabit connectivity back in 2017, after firmly establishing their fiber services for local businesses.

When contemplating the investment, city leaders adopted the approach that their fiber optic network would be an essential piece of infrastructure on par with sewers or roads. Fairlawn used municipal bonds with no intention of turning a profit; they considered the network an investment that would keep the Akron suburb competitive. Residents, businesses, and institutions in Fairlawn, however, have enthusastically signed up for fast, reliable, connectivity where residents can get gigabit Internet access for $75 per month.

In the most recent episode of his weekly Netflix show Patriot Act, comedian and former Daily Show correspondent Hasan Minhaj answers the question we’ve all asked ourselves: “Why does my Internet service provider suck so much?” To figure it out, the show, which features research from the Community Broadband Networks initiative, takes a deep dive into Internet access inequality, lobbying telecom monopolies, inept federal regulators, municipal broadband networks, and more.

Minhaj, citing our Profiles of Monopoly report, points to monopoly broadband providers as one of the main reasons for slow speeds, poor service, and uneven access. He calls out Comcast in particular:

“Now look, all of these companies are terrible, but Comcast deserves a special place in Hell . . . In fact, Comcast has been called “America’s Most Hated Company” . . . The emotions are real. People hate Comcast.”

Later, he notes that the federal government shares responsibility for the sad state of affairs:

“The most frustrating part about the broadband cartel is that the government isn’t just letting this happen; it’s helping it happen. They are protecting broadband monopoly power over the public good, and most of the blame falls on one agency: the Federal Communications Commission, or the FCC.”

In the episode, Minhaj also explains how the FCC’s data collection methods vastly overstate broadband coverage, calling Form 477, which the agency uses to collect deployment data from providers, the “government version of ‘grade your own quiz.’”

As a counterpoint, Minhaj highlights how communities across the country, like Chattanooga, Tennessee, are building their own broadband networks to get around monopoly providers and sluggish regulators:

“Small cities are going DIY, and they’re setting up their own Internet. It’s become known as municipal broadband, and it is phenomenal. It turns out, when cities create their own Internet, then their own broadband customers get faster speeds, lower prices, and better customer service — you know, all the things that violate Comcast company policy.”

Municipal broadband, he says, is creating competition and faster, more affordable Internet access:

It was only a year ago that Next Century Cities Executive Director Deb Socia received the Charles Benton Digital Equity Champion Award. Since then, Deb has continued to raise the bar for nonprofit leaders. She has brought people together, advocated for smart policies, and developed resources to help local communities improve connectivity and shrink the digital divide. Now, Deb has decided it’s time to share her high-energy magic in Tennessee. Deb recently announced that she has accepted a position as CEO of the Enterprise Center in Chattanooga.

The Heart and Soul of Next Century Cities

Since she started the organization in the fall of 2014, Deb has led its team and the member communities that collaborate and share information. The group began with a modest 32 members, but through Deb’s hard work and determination, more than 200 communities have now joined. The nonprofit, through her vision and leadership, has assisted local governments in their vision of better connectivity and local policies that encourage broadband investment.

Earlier this month, Chattanooga’s celebrated as municipal network EPB Fiber Optics announced that they now have more than 100,000 subscribers. The high numbers indicate that the network is serving more than 60 percent of premises in the EPB service area. EPB's success also attests to the popularity of publicly owned Internet infrastructure that is accountable and responsive to the community that both own and use the network.

An Expected Milestone, Big Benefits

Hitting six digit subscribership this fall was no surprise based on rapid growth and intense interest in EPB’s affordable, symmetrical 10 gigabit connectivity along with other available speeds. When the city began serving subscribers in 2009, they based initial figures on an estimate of 35,000 subscribers within five years to break even. Within 18 months, they had already surpassed those goals.

Having paid off remaining debt earlier this year, more revenue is now freed up for more investment back into the system or to put back into the community. The utility is now reinvesting around $42 million per year back into the electric system and power rates are lower for the entire community, regardless of whether or not electric customers are EPB Fiber Optic subscribers.

"Contrary to the fears some had about us spending power funds to pay for this service, our power rates are actually 7 percent lower than they otherwise would be because of our Fiber Optic network and the business it has generated for us," EPB President David Wade said.

In addition to significant savings on power rates, Chattanooga has experienced an influx of economic development as tech companies have come to the city specifically for the network. “Gig City” Mayor Andy Berke:

Consumer Reports (CR) has once again gone straight to the source to collect opinions on subscribers’ experiences with their Internet access, telephone, and pay TV services. Unsurprisingly, a vast majority of respondents to their survey of 176,000 people expressed dissatisfaction with the large national providers. Once again, municipal network Chattanooga EPB Fiber walked away as the only Internet service provider to receive top marks for value, speed, and reliability.

This isn’t the first time the Tennessee publicly owned network appeared at or near the top of the list in a customer satisfaction survey. In addition to consistent high scores on CR surveys, EPB Fiber has also earned kudos from J. D. Power.

After Chattanooga EPB Fiber, Google Fiber was the only private sector ISP to garner a positive rating from subscribers. Google Fiber also obtained a favorable score for value.

Bigger is Better (Not!)

The most recent survey from CR also underscored what many Internet access, pay TV, and telephone subscribers keep expressing year after year — that they despise the big, corporate behemoth providers. When it comes to Internet access, smaller cable ISPs fared a little better, but only Armstrong Cable Company, serving communities in Pennsylvania, Ohio, and four other states, received an “overall satisfaction” rating.

RCN, Hawaiian Telecom, and Grande Communications also did better than the large ISPs, including Comcast, Spectrum, and Cox Communications.

Hiding Fees in the Bundles

According to a CR article on their survey and analysis of the results, approximately 75 percent of subscribers answering the survey needed to bundle TV, Internet access, and telephone to obtain what they thought was the best deal. Subscribers reported that, even though they had to continually haggle for acceptable pricing, they still felt overcharged.

In May of 2017 we congratulated Chattanooga’s EPB Fiber for exceeding 90,000 subscribers and contributing to lower power rates for all (Electric Power Board) EPB customers. Now less than a year later, there is more to celebrate as EPB expects to reach 100,000 subscribers by Fall 2018 and is still lowering electricity costs for all customers. 

The city-owned electric utility launched its citywide fiber optic network in 2009 and never looked back. The original plan issued nearly a quarter of a billion dollars in debt for the utility and had an estimated forecast for only 35,000 subscribers. The city is now reaping the rewards from its investment; the utility paid off the last of its debt earlier this year, and now projected revenues for the fiscal year 2018-2019 from the telecom division sit at $169.1 million.

For a detailed, interesting history on EPB Fiber Optics, take some time to listen to Harold DePriest talk with Christopher in episode 230 of the Community Broadband Bits podcast. Before retiring, Harold was the tip of the spear in bringing the network to Chattanooga.

Major Savings

While EPB has long been recognized for its lightning fast Internet speeds and has repeatedly been ranked among the fastest in the U.S. (including this year’s fourth fastest ISP in the United States), the utility’s fiber optic lines also help lower power rates for all customers by eight percent. Whether Chattanoogans subscribe to EPB Fiber for Internet access or not, they still benefit from the infrastructure.

On June 18th, PCMag came out with its list of “The Fastest ISPs of 2018.” The analysis looks at ISP performance in several different ways and provides a range of different side-by-side comparisons. The results prove that publicly owned infrastructure has in important role in bringing high-quality Internet access to Americans.

The Dakotas' Co-ops Rock

When taking a wide angle lens view of the fastest U.S. states results, we noticed that two of the top four states with the fastest ISPs were North Dakota and South Dakota. Rural cooperatives in these two states have excelled at deploying high-quality Internet access via fiber optic infrastructure. As a result, North Dakota and South Dakota have some of the most complete coverage of Fiber-to-the-Home (FTTH) Internet access and gigabit FTTH in the country. Notice all the coverage on our cooperative map:

Check out a larger map here.

Like rural electrification in the 1930s, cooperatives are taking on the task of bringing high-speed Internet service to members in rural areas. They live and work in the areas they serve. Big ISPs don’t consider sparsely populated areas suitable investment opportunities, so electric and telephone co-ops are repeating the approach of the 1930s, but this time with fiber networks. Dickey Rural Telephone Cooperative in North Dakota and Venture Communications Cooperative in South Dakota are only a few that have worked to get their members connected.

FCC Chairman Alit Pai and Republican Commissioners earned big lumps of coal for holiday gifts this year when they shredded network neutrality protections on December 14th. They also raised interest in publicly owned Internet network infrastructure. Existing publicly owned networks are reaffirming their commitment to network neutrality, including EPB Fiber Optics in Chattanooga.

Online Q & A

In order to reassure their subscribers and help clarify their policy, EPB held a live session via the utility’s Facebook page on December 15th. To start off the conversation, CEO David Wade explained that nothing will change for EPB customers, regardless of the FCC decision. “For EPB fiber optics customers, [this ruling] means nothing,” Wade said. “We’re committed to having an open Internet.”

In an effort to better educate the community, EPB also asked legal counsel David DiBiase, marketing manager Beth Johnson, and Vice President of Marketing J.Ed. Marston to participate in the conversation and answer questions from viewers.

Customer Care Pledge

EPB has embraced network neutrality principles in its Customer Care Pledge, a simple and straight forward list of commitments to subscribers:

The best possible service delivered with the utmost respect. That's always been our commitment to our customers — and it always will be.