This is the transcript for episode 261 of the Community Broadband Bits Podcast. Dane Jasper of Sonic joins the show to discuss how the company, publicly-owned infrastructure, and public-private partnerships. Listen to this episode here.

Dane Jasper: I think a city that adopts an open access, dark fiber model creates the greatest opportunity for a diversity in choices for the consumer and a diversity in the performance and price of services. That's the model that I think would be the most interesting.

Lisa Gonzalez: This is Episode 261 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Dane Jasper from the internet service provider Sonic visits with Christopher this week. We've written about Sonic on MuniNetworks.org and how the company has used publicly-owned infrastructure to bring better connectivity to Brentwood in California. In this interview, Dane offers his perspective on different types of publicly-owned community networks, and how those networks affect a potential partnership with a company like Sonic. Before we start the interview, we want to remind you that this is a commercial-free podcast, but it isn't free to produce. Take a minute to contribute to ilsr.org. If you're already a contributor, thanks. Now here's Christopher with Dane Japer from Sonic.

Christopher Mitchell: Welcome to another episode of the Community Broadband Bits podcast. I'm Chris Mitchell, and today I'm speaking with Dane Jasper, the CEO and Co-founder at Sonic. Welcome to the show.

Dane Jasper: Thanks, Chris.

Christopher Mitchell: Dane, I suspect most of our listeners are familiar with Sonic. Although you serve three cities in California, your reputation is much wider and deeper than that. Maybe you can just enlighten those who haven't heard of Sonic. What is Sonic?

Dane Jasper: Sonic is an alternative access provider, so we're a regional, competitive, local exchange carrier and internet provider. Today, we offer broadband services in 125 California cities using copper technologies, VDSL, pair bonding, ADSL2+, and three cities, as you noted, with gigabit fiber to the home. We have a little over 400 employees and about 100,000 customers.

When local communities look for ways to improve connectivity, they may consider investing in a municipal fiber optic network. As they begin to review possible options, local officials, their staff, and community groups will realize that there are a number of potential models. We’ve put together the Muni Fiber Models fact sheet that takes a brief look at those models and provides some examples.

From “Retail” to “Tubes In The Ground”

Chattanooga is the most well known municipal Fiber-to-the-Home (FTTH) network and is offered by the community’s Electric Power Board (EPB). EPB’s service offers telephone, Internet access, and video service directly to subscribers. The fact sheet provides more examples of communities that have decided that full retail service is right for them. On the other end of the spectrum, places like Lincoln, Nebraska, provide only the infrastructure and lease it to private sector providers who then offer retail services to businesses and residents. The other approaches we find most commonly used include open access, I-Nets, and Partnerships between local government and the private sector.

We’ve included short explanations for each model and provide some examples for a starting point. We encourage you to share the fact sheet with others who are interested in learning about different paths to better connectivity through publicly owned networks.

Download the Muni Fiber Models fact sheet here.

Review our other fact sheets and check back periodically for new additions. Fact sheets are a great way to quickly and easily share information and cultivate interest in learning more.

The communities of Calais and Baileyville in Maine are joining forces and investing in fiber optic infrastructure. Recently, the city councils in both communities along with the local economic development corporation decided to construct a publicly owned dark fiber network. They’ve also chosen a local firm to construct it.

Dark Fiber

The idea for the project started in 2015 when the Downeast Economic Development Corporation (DEDC) contacted local Pioneer Broadband to discuss ways to improve connectivity. DEDC is a non-profit entity engaged in improving economic development in the region. Calais’s choices for Internet access were limited and some areas out of the city had no Internet access at all. DECD hired Pioneer to develop a feasibility study which would provide suggestions to improve access for both businesses and residents, with symmetrical connectivity a priority.

Pioneer’s study suggested a dark fiber municipal network with connectivity to all premises in Calais and adjoining Baileyville. ISPs will then have the opportunity to offer services to the community via the publicly owned infrastructure. Julie Jordan, director of Downeast Economic Development Corporation said: 

“I’m pleased to say that the Baileyville Town Council, Calais City Council and Downeast Economic Development board of directors have all endorsed this exciting project. We look forward to working with Pioneer and developing results that can dramatically improve service in our towns. With the construction of the fiber optic infrastructure, Calais and Baileyville businesses and residents will have access to state of the art, high speed, reliable internet and these communities will be poised for the jobs of today and tomorrow. Telecommuting options, telemedicine, online education, and media streaming will all be greatly enhanced.”

Along The Border

Sandpoint, Idaho’s fiber-optic infrastructure is ready to lease to Internet Service Providers (ISPs) interested in serving the north Idaho town. A regional provider recently announced that it will take advantage of the community’s fiber to expand its network by leasing dark fiber from the city to serve local commercial subscribers.

Big Plans Begin To Unfold

The city installed fiber during road project construction over a five-year period. About a year ago, Sandpoint released a Request for Proposals (RFP) to help the community of 9,700 people make strategic use of its dark fiber network. In addition to leasing dark fiber to providers, the network will serve municipal needs such as public safety and city offices. In February, the City Council established rates for dark fiber leasing and maintenance.

Things have been somewhat quiet until Intermax Networks announced that it has entered into an agreement with the city to lease excess capacity on Sandpoint’s network and will use the new infrastructure to offer connectivity to local commercial subscribers.

President Max Kennedy said in an official statement:

"We’ve provided fiber services to commercial businesses in Sandpoint for years, but today we are proud to be the first private partner with the City of Sandpoint to expand our network by licensing space on the city’s new fiber infrastructure.

…

Sandpoint has been an integral part of Intermax since the company was founded in Sandpoint in 2001. This year we are going to be dramatically expanding our service capacity in Sandpoint, and we’re pleased to be working with the city on this great project."

Intermax serves commercial sites throughout northern Idaho with fiber and connects to peer networks in Seattle and Portland. The company also provides a variety of services to residential customers and anchor institutions in Kootenai, Bonner, Boundary, and Spokane Counties.

Don't Forget Mr. And Mrs. Sandpoint

The Roanoke Broadband Valley Authority (RVBA) was busy early this legislative session helping to fight off a bill in the Virginia Legislature aimed at limiting local authority. Now that the bill has been all but neutralized by grassroots efforts, RVBA can dedicate 100 percent of its time to improving connectivity and economic development in Virginia’s Roanoke Valley.

Accelerating, Mentoring, Connecting

The RVBA just announced that its network is providing fast, affordable, reliable dark fiber services to a regional business accelerator in downtown Roanoke. The Regional Acceleration and Mentoring Program (RAMP) is a collaboration between the city of Roanoke, Virginia Western Community College (VWCC), and the Roanoke-Blacksburg Technology Council. In a press release, Shivaji Samanta, Director of Information and Educational Technologies at Virginia Western said:

“Virginia Western has collaborated with the Roanoke Valley Broadband Authority to provision fiber connectivity between its main campus and the two downtown Roanoke sites at the Claude Moore Education Center and the new entrepreneur training facilities inside the RAMP building. The project, delivered on time and within budget, provides VWCC with dedicated connectivity to its off-campus locations at speeds limited only by the equipment at the end-points for a fixed monthly cost.”

RAMP is located in an historic building that was once the Gill Memorial Hospital; the city used a $600,000 state grant to renovate the building and transform it into an incubator. VWCC will be offering business education courses at the facility and will offer faculty support, and the Roanoke-Blacksburg Technology Council will develop mentorship and networking opportunities. Members of the Council also lead the RAMP Advisory Board.

Connecting the Business Community

This is the latest in what is sure to be more connections offered by the RVBA. Last fall, finance company, Meridium, signed up with the publicly owned network. The company needed dark fiber for Internet access and data transport for its downtown headquarters.

According to RVBA President and CEO Frank Smith:

By June, the networks in the Ports of Clarkson and Lewiston will at last be connected after months of negotiation, collaboration, and unraveling and old conduit mystery. 

Network Stalled By Conduit Question

Last summer, we reported how the two communities had each invested in publicly owned fiber Internet infrastructure with the plan to connect the networks at the Soothsay Bridge across the Snake River. An issue arose when rights to ownership arose regarding ownership and use of conduit on the bridge. CenturyLink controlled 20 conduits on the bridge that it obtained years ago as part of Pacific Northwest Bell. The provider was only using five of the conduit. The Ports had doubts about who actually owned the conduit and so the Port of Clarkson filed a Freedom of Information Act with the U.S. Army Corps of Engineers to determine the true owners. In the meantime, CenturyLink offered the Port of Clarkston use of one of the conduits for $0.

Soon, the parties involved discovered that there was no lease between CenturyLink and any of possible four jurisdictions involved - Nez Perce and Asotin counties or the cities of Lewiston and Clarkston, current co-owners of the bridge.

After unraveling the conduit ownership issue, reports the Lewiston Tribune, all five entities worked out an agreement to govern the conduit:

Those entities spent months negotiating, and in recent weeks elected officials from both counties and both cities signed off on an agreement. It makes the city of Lewiston’s Public Works Department the primary point of contact for CenturyLink and allows any one of the bridge owners to veto a lease or sale of the conduit. CenturyLink is not required to pay to be on the bridge.

Moving On

Now that the point of connection between the two networks is settled, the two Ports have completed an agreement to authorize the Port of Lewiston as the entity to head up installation of conduit on the Southway Bridge.

The imminent arrival of Google Fiber and two other Internet Service Providers offering Gigabit speeds (1,000 Megabits per second) to Huntsville, Alabama is expected to be a boon to subscribers, reports Alabama Tech. 

The tech publication predicts the three ISPs - Google Fiber, AT&T  and WOW! - will spur competition that will lower prices for residential and business subscribers. A newly-released report from Analysis Group and funded by the Fiber to the Home Council shows that direct competition in a designated market results in overall price drops for connectivity service of all speeds. 

“Research shows a 'Gig City' lowers the monthly standard price on plans with at least 100 Mbps down 25 percent, or $27 per month. When it directly compares markets with one Gigabit provider compared to two, the price of Gigabit services decreases approximately 34 to 37 percent, or $57 to $62 per month.”

The tech publication also stated a domino effect occurs when an ISP says it will offer Gigabit services:  

“The likelihood of other providers offering similar services increases in an effort to keep pace with its competition. This trend applies to Huntsville. WOW! and AT&T announced it had launched Gigabit-speed services for Huntsville customers in October 2016, which was less than a year after Google Fiber announced it would offer services to some Huntsville customers beginning in 2017.

From Alabama Tech:

“When Google Fiber enters the market, it will likely help lower prices in Huntsville...WOW! will likely offer gigabit speeds at $160 per month for customers after the conclusion of its $70 per month promotion, while AT&T Fiber is currently offering Huntsville customers a non-promotional rate of $90 per month for gigabit services. Google Fiber is expected to offer $70 per month services when it enters the market. AT&T Alabama president Fred McCallum wouldn't rule out price adjustments to compete with other providers.”