Tag: "financing"

Posted April 25, 2022 by Ry Marcattilio-McCracken

We see this question from time to time as one of the nuts and bolts parts of building a new network: where does insurance come into play? New infrastructure is, after all, expensive. 

Doug Dawson answers this question clearly and comprehensively in a recent post. The short of it is that in the vast majority of instances, damage for the conduit and fiber portions of the network get covered either by FEMA or the utility provider that owns the poles. This is, he notes, separate from the buildings and other non-cable/conduit portions of an outside plant, which are often covered by some sort of insurance. 

There are certainly insurers that will do it, but Doug advises thoughtful cost accounting before making a decision. It’s good advice, especially since it looks like at least some of the insurance industry is eyeing the billions in new federal infrastructure money as a way to diversify their portfolios.

One thing that Doug’s piece doesn’t cover is security threats, which have certainly been on the rise over the last few years. As our electric and information grid infrastructure continues to grow closer and bad actors see opportunities to go after small ISPs with fewer resources, the cost of disruption and downtime may change the motivation for network insurance.

Read Doug’s full piece here.

Watch the Episode 39 of Connect This! to hear the panel talk a little more about insuring broadband networks.

Posted January 25, 2022 by

In this episode of the Connect This! Show, co-hosts Christopher and Travis Carter (USI Fiber) are joined by Kim McKinley (UTOPIA Fiber) and Doug Dawson (CCG Consulting) to talk current events in broadband.

The panel will dig into recent attacks on munis, states that are providing outside plant materials as grant awards, and how partnerships can get creative with using milestones rather than upfront cash.

Subscribe to the show using this feed on YouTube Live or on Facebook Live, or visit ConnectThisShow.com

Email us broadband@muninetworks.org with feedback and ideas for the show.

Watch here on YouTube Livehere on Facebook live, or below.

Posted January 4, 2022 by Ry Marcattilio-McCracken

 

The new year is upon us, but don't let the mountain of emails in your inbox distract from a fantastic opportunity coming down the pipeline.

A philanthropic effort via Connect Humanity in partnership with EntryPoint Networks and Biarri Networks is giving out five Broadband Master Plans to communities to help bring the digital divide through an initiative they are calling Build Better Broadband. The comprehensive analyses will include everything from surveys of current access, to network design, to financial modeling and risk assessment. Applications are due January 14, 2022. 

Successful applicantions, the website points out, will focus on "speed, affordability, and overall access in diverse, low-income, and/or historically underserved communities through non-profit, community-owned, or public infrastructure." Communities of all sizes, from rural and urban areas, are invited to apply. Contenders will participate in an interview process in the first weeks of February, with winners announced at the end of the month.

Connect Humanity describes itself as a "fund advancing digital equity."

We support, catalyze, and scale holistic solutions providing people with the Internet access and means needed to participate fully in a digital society. We believe that one of the best ways to support communities to achieve digital equity is through comprehensive Broadband Master Plans.

EntryPoint Networks specializes in software-defined, open access networks. The firm worked with Ammon, Idaho, and continues to collaborate with communities around the country. Biarri Networks specializes in design and engineering services.

This looks like a unique opportunity to kickstart local efforts, get organized, and set up for success as lots of funding comes down the road. Read the FAQ here, and apply todayApplications are due January 14, 2022. 

Posted December 14, 2021 by Ry Marcattilio-McCracken

A year after a group of local broadband champions got together to see how they could improve Internet access in Missoula, Montana, the Missoula Valley Internet Cooperative has successfully raised funds and designed, deployed, and launched a wireless mesh network delivering 150 Megabit per second (Mbps) symmetrical service to more than 50 of 550 pre-registered households for, on average, $40-60/month. The community-owned option has injected some welcome competition to a stagnant local broadband market, with a second network already in the planning stages in a community to the north.

Both efforts are being driven by the Pacific Northwest Rural Broadband Alliance (PNWRBA), a Missoula, Montana-based nonprofit aiming to build resiliency, local capacity, and expand quality Internet access to the region by making use of a variety of community-oriented business models. The nonprofit serves not only to coordinate grassroots organizing efforts, but provide technical assistance and lead policy engagement with local leaders. It is running a dual mission. First, to bring faster and more affordable Internet access via a community-owned model to the area. And second, to prove out a series of models in the region with the hopes of generating additional community-based approaches to improving broadband in the region and beyond.

Grant Creek 

At present, the Missoula Valley Internet Cooperative covers Missoula’s (pop. 74,000) Grant Creek neighborhood, a roughly one and a half square-mile area (see right) of 400 households bounded by the Clark Fork River and Highway 90. But the eventual plan is to cover all of Missoula before expanding to cover East Missoula, Bonner, and Clinton, and then head south toward Lolo. The total proposed coverage area (see below) is reminiscent of the shape of the state of Florida, about 30 miles wide and 50 miles long, with the city of Missoula at the northeast corner and including the cities and towns along the T-shape made by Interstate 90 and State Highway 93. 

In its first service area the network provides Internet access...

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Posted November 29, 2021 by Ry Marcattilio-McCracken

The recently passed infrastructure package is going to drive an unprecented amount of money to broadband projects over the next few years, which means that communities that begin serious planning and preparation now will find themselves in the best place to succeed in the near and medium future. Dozens of cities have announced plans to use Rescue Plan funds to begin surveying, mapping, developing feasibility studies, and contracting high-level designs, signalling a commitment to improving local Internet access and backing that commitment from that flexible pot of funding.

But maybe local officials in your community have shown a reluctance to heed the call that poor Internet during the pandemic has negatively impacted students, small businesses, or efforts to work from home. Or the city council has already earmarked those funds for needed water or sewer upgrades. The good news is, a philanthropic partnership has launched an effort to help out a handful or communities.

Connect Humanity, in partnership with EntryPoint Networks and Biarri Networks, is giving out five Broadband Master Plans to communities to help bring the digital divide through an initiative they are calling Build Better Broadband. The comprehensive analyses will include everything from surveys of current access, to network design, to financial modeling and risk assessment. Applications are due January 14, 2022. 

Successful applicantions, the website points out, will focus on "speed, affordability, and overall access in diverse, low-income, and/or historically underserved communities through non-profit, community-owned, or public infrastructure." Communities of all sizes, from rural and urban areas, are invited to apply. Contenders will participate in an interview process in the first weeks of February, with winners announced at the end of the month.

Connect Humanity describes itself as a "fund advancing digital equity."

We support, catalyze, and scale holistic solutions providing people with the Internet access and means needed to participate fully in a digital society. We believe that one of the best ways...

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Posted November 16, 2021 by Maren Machles

On this week’s episode of the Community Broadband Bits Podcast, Sean Gonsalves joins regular host Christopher Mitchell in a conversation with Michael Maloney, a public finance banker and the Managing Director at D.A. Davidson based in Iowa. Maloney has spent his career working on public financing projects to hope to spur economic development, including broadband.

The three discuss Gonsalves’ recent story on Fort Dodge and how the community’s frustrations propelled a push to build a municipal fiber-to-the-home network.

They also discuss the financial and regulatory barriers and opportunities for municipal broadband across the state and how Fort Dodge is an example of how projects of this size can still come to fruition.  

This show is 38 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed. You can listen to the interview on this page or visit the Community Broadband Bits page.

Read the transcript here.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index.

Subscribe to the Building Local Power podcast, also from the Institute for Local Self-Reliance, on iTunes or Stitcher to catch more great conversations about local communities, the concentration of corporate power, and how everyday...

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Posted November 9, 2021 by Sean Gonsalves

This past Friday Congress finally passed the bipartisan Infrastructure Investment and Jobs Act. The legislation includes $65 billion to boost high-speed Internet connectivity – “the largest (federal) investment in broadband deployment ever,” as noted by Benton Institute for Broadband & Society. This is an historic piece of legislation that includes many of the things we wanted to see in it and we believe it will significantly help solve broadband challenges for many who have not yet been well connected. 

There are two major buckets of broadband money that will be made available to states and tribal governments: $42.5 billion for the deployment of infrastructure, which will be mostly aimed at rural communities, with the rest going toward digital inclusion efforts.

While we have not yet gone through the final version with a fine-toothed comb, the broadband portion of the infrastructure bill appears to be identical to what was in the bipartisan Senate version of the bill, which we previously wrote about here.

Rural America Biggest Beneficiary

The $42.5 billion portion of the bill will be allocated to the States in the form of block grants under the Broadband Equity, Access, and Deployment (BEAD) Program, which will be administered by the U.S. Department of Commerce's National Telecommunications and Information Administration (NTIA).

The money targets “unserved” locations and in this bill “unserved” means communities that don’t have access to 25/3 Megabits per second (Mbps) service. As we previously noted about the Senate version of the bill, “there aren’t many places outside of the most rural regions of the country that do not have access to 25/3 broadband service. And considering that large...

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Posted November 4, 2021 by Sean Gonsalves

Because its downtown buildings were made to resemble Windy City architecture, Fort Dodge was once nicknamed “Little Chicago.” But now, this north-central Iowa city with a population of just under 25,000 is building something the real Chicago, 360 miles east of Fort Dodge, does not have: a municipal fiber-to-the-home (ftth) network.

Having secured up to $36.8 million in loans from a consortium of local banks, the Cedar Rapids-based engineering firm HR Green has been hired by the city to put together a final engineering and design plan for a city-wide fiber network.

The RFP to do the construction work will go out to bid in late spring 2022, with actual network construction slated to begin in the summer of 2022. City officials say the new utility will likely begin offering high-speed Internet service to Fort Dodgers as soon as the summer of 2023, though the network won’t be fully built-out city-wide until 2024.

Unserved, Underserved and Poorly Served

In many rural communities, local governments, cooperatives, public entities, or nonprofit organizations will sometimes build the infrastructure necessary to deliver high-speed Internet service to the unserved and underserved because incumbent providers don’t see enough short-term ROI to justify the expense. But in more densely populated locales, municipal broadband is often pursued because the existing service from private providers simply isn’t up to par. The market has failed rural, suburban, and urban communities - just in different ways.

And that’s why in cities like Fort Dodge, the feasibility study commissioned by the city hits on a familiar refrain found in feasibility studies across the nation:

“Despite being the largest city in the region and key commercial hub, Fort Dodge telecommunications infrastructure is less advanced than in surrounding rural areas and small towns like Lehigh, Dayton, and Badger.”

Fort Dodge is currently served by Frontier and MediaCom – two of the lowest-ranked national ISPs, according to Consumer Reports. But, after years of citizen complaints about poor incumbent service, Fort Dodge City Councilors in 2018 decided to create a strategic...

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Posted November 1, 2021 by Sean Gonsalves

UTOPIA Fiber continues to grow and is now exporting its expertise into Bozeman, Montana – one of the fastest-growing cities of its size and often listed among the best places to live in the country.

Referred to by some as “Boz Angeles” because of the influx of Californians to the area, this Rocky Mountain city of 53,000, nestled in Gallatin Valley, is about to become even more attractive as a rising tech hub for millennials. At the Broadband Communities 2021 Summit last month, it was announced that Bozeman Fiber, a non-profit organization created by the city to expand high-speed Internet connectivity across the region, has partnered with Utah-based UTOPIA Fiber to build an open access fiber-to-the-home (FTTH) network.

Bozeman Fiber has already built an open access fiber ring, serving city, county, and school facilities. It has also connected 200 commercial customers. The partnership with UTOPIA will allow Bozeman Fiber to extend the network across the city, passing 22,000 homes and businesses, with plans to extend further out into the more rural parts of Gallatin County down the road.

Network construction, which is estimated to cost $65 million, is slated to begin in the spring of 2022 and is expected to take three years to be completed.

“This is the first phase of a project that will cover the city and some areas of the county, and the intention is we’ll have future phases that reach further out into the county to hit more rural areas,” UTOPIA Fiber executive director Roger Timmerman said during the press conference announcing the partnership.

Bozeman Fiber CEO Greg Metzger added: “with this project, we’ll be able to attract and retain more businesses, and create jobs.”

County Provides Access to Bond Market

To finance the network construction, Bozeman Fiber has partnered with the Gallatin...

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Posted October 26, 2021 by Jericho Casper

Calloway County (pop. 39,000) in western Kentucky is known for the picturesque shorelines circling Kentucky Lake, the wildlife at Land Between The Lakes National Recreation Area, and as the home of Murray State University where Ja Morant dazzled basketball fans before becoming an NBA phenom.

Now there's a different team coming to town that will delight local residents: a new partnership between Calloway County and West Kentucky and Tennessee (WK&T) Telecommunications Cooperative will soon make this rural corner of the state known as a home for high-speed Internet connectivity, as the county and WK&T recently announced they were joining forces to expand the cooperative’s existing fiber network to reach every unserved and underserved location in the county.

Calloway County and WK&T are each committing a $6.2 million matching contribution for the first phase of the expansion project, which will see the co-op’s fiber-to-the-home network in the region extended 236 miles to serve an additional 4,274 homes and businesses. 

WK&T currently serves over 15,000 subscribers in Kentucky and Tennessee with broadband, voice, video and security services, some of whom are in Calloway County. There are also a number of households in the city of Murray, the county seat, with access to fiber service through the city-owned utility Murray Electric System (MES). Yet, thousands of premises on the outskirts of the county remain unserved by Internet Service Providers. The fiber expansion project, which the Calloway County Fiscal Court unanimously voted to pursue in early August, will ensure all county residents can benefit from access to high-speed Internet service. 

To supply their respective portions of the local match, the county has indicated it will contribute a portion of its $7.5 million in American Rescue Plan funds, while WK&T has applied for a $5.54 million Economic Development Administration grant made available through the...

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