Tag: "financing"

Posted July 2, 2019 by lgonzalez

Summer is the time for the Mountain Connect Broadband Development Conference, one of the events that Christopher is sure to attend every year. This year, it was held in Dillon, Colorado, and while he was enjoying the scenery, he collected a series of interviews. This week we hear from Brian Worthen, CEO of Mammoth Networks.

With its home base in Wyoming, Mammoth serves locations in eleven western states. They primarily provide wholesale middle mile service, but the company also offers last mile connectivity in select locations. Brian describes how, over time, Mammoth has developed a system of adopting combinations of technology to get the job done. They provide service in areas that are often sparsely populated, in areas where the geology varies, and Mammoth adjusts to the needs of their diverse customers.

The company received an award at Mountain Connect for their work on Colorado’s Project THOR. In this interview, Brian describes their involvement with the project and with several other local projects in the state. Christopher and his guest talk about cooperatives and their expanding role in delivering high-quality Internet access. They consider which levels of government are best suited to offer financial assistance to broadband initiatives, especially in rural communities, and discuss the potential for Low Earth Orbit Satellites to contribute to universal broadband access.

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

This show is 32 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...

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Posted May 24, 2019 by lgonzalez

The fifth anniversary of the announcement of the KentuckyWired project is approaching later this year. As voters start to assess their candidates’ job performance, the unfinished and over budget middle mile public-private partnership (P3) has become an albatross that incumbents aren’t able to easily cast off. When we last discussed the project in 2017, we shared our observations and misgivings. Not much has changed, except some of our concerns have played out and the project has become troubled by new problems.

In Case You’re Just Arriving to the Party… 

The statewide, massive middle mile project officially began when Kentucky announced in late 2014 that they would build a fiber optic network in order to bring better connectivity to rural areas. They planned to find a private sector partner and sought bids. In the fall of 2015, Australian firm Macquarie won the contract for what soon became an even larger endeavor — a fiber optic network that would enter every county in the state at a minimum of one location. The network would consist of approximately 3,200 miles of fiber and connect about 1,000 public facilities. At the time the project was developed, the state estimated that deployment would cost approximately $300 million.

With early bipartisan support, the state allocated $30 million from their budget, which they expected to combine with $23.5 million in federal grants. When the Kentucky Economic Development Finance Authority issued $232 million in tax-exempt revenue bonds and $58 million in taxable revenue bonds to complete financing, Bond Buyer named the issue the “Deal of the Year” for 2015. Macquarie’s timeline estimated an optimistic one-year completion for the entire statewide project.

logo-Macquarie.jpgMacquarie Capital, as the entity managing the project, included in the agreement with the state a requirement that they and their partners, including Black & Veatch from Kansas and Ledcor of Canada, would build, operate, and maintain the network for 30 years. During the course of those three decades, the state would pay them approximately $1.2 billion and when the term was over, Kentucky would own the infrastructure free and clear. During the contract period, Kentucky would make “...

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Posted November 15, 2018 by lgonzalez

Earlier this summer, we talked with Jase Wilson and Lindsey Brannon from Neighborly, the investment firm that uses online investing to allow individuals to invest in publicly owned infrastructure projects, including broadband networks. Jase and Lindsey described a program they had just launched, the Neighborly Community Broadband Accelerator. 

A Boost for Local Broadband

The program is designed to help local communities with necessary tools and financing from the start of their project planning. The Accelerator will provide mapping and community engagement tools, help from experts who will share best practices, and access to industry partners, such as ISPs and engineers. In addition to these and other information perks, communities accepted to the program will have the benefit of Neighborly financing at a competitive, below industry rate cost.

Applications were due by September 28th and more than 100 applications indicate that, more than ever, local communities are interested in taking action to improve connectivity. These 35 communities were accepted into the Broadband Accelerator Program:

  • Fresno, CA
  • Nevada City, CA
  • Oakland, CA
  • Palo Alto, CA
  • Santa Rosa, CA
  • Salinas, CA
  • Lyons, CO
  • Madison, CT
  • Jacksonville, FL
  • New Orleans, LA
  • Brockton, MA
  • Cambridge, MA
  • Millinocket, East Millinocket & Medway, ME (on behalf of Katahdin Broadband Utility)
  • Windham, ME (on behalf of Lakes Region Broadband Partnership)
  • Blue Hill, Brooksville, Deer Isle, Penobscot & Sedgwick, ME (on behalf of Peninsula Utility for Broadband)
  • Metuchen, NJ
  • Cleveland, OH
  • Portland, OR
  • Harrisburg, PA
  • Block Island, RI
  • Sweetwater, TN
  • Baird, TX
  • Ashland, VA
  • Manquin, VA
  • Richmond, VA
  • Virginia Beach, VA
  • Enosburgh, VT
  • Sauk County, WI
  • Laramie, WY

To get started, communities will receive curriculum from experts in municipal broadband and related policy, including our Christopher Mitchell, Deb Socia from Next Century Cites, and Blair Levin, Senior Fellow of the Metropolitan...

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Posted September 12, 2018 by lgonzalez

In episode 320 of the Community Broadband Bits Podcast, aired on August 28th, we shared news about an opportunity regarding funding local Internet network infrastructure. Jase Wilson and Lindsey Brannon of Neighborly announced that the online investment platform had recently launched the Neighborly Community Broadband Accelerator. Applications to participate in the program close on September 28th, so we want to encourage local communities, Internet Service Providers, or community advocates interested in new ways to develop better local connectivity to check out the program.

More Than Money

For a quick recap, Neighborly is a technology company that provides an online investment platform to give individuals and entities the ability to invest in projects funded with municipal bonds. The projects are publicly owned and centered on improving the quality of life on the local level. Project areas include transportation infrastructure, schools and libraries, housing, and utilities. The accelerator program specifically aims to help local communities develop their own open access municipal networks to improve connectivity and encourage competition for broadband on the local level.

As Jase and Lindsey described in our interview, the numerous moving pieces associated with developing a fiber optic municipal network create a layered and complex project; a key element is financing. While it’s often left as a later consideration — one that makes or breaks the project — chances of success improve when community leaders address funding early and throughout projects development. 

One of the goals of the Accelerator Program is to help local communities interweave funding throughout the process. The program also provides additional resources throughout the process to help ease broadband network development. Applicants accepted to the program pay no fee and receive:

  • Tools to map, multiply & accelerate community engagement, including demand aggregation technology and marketing collateral to build a grassroots movement
  • Education sessions with leading experts who will share best practices for generating local support, working with civic leaders, overcoming legislative...
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Posted August 30, 2018 by lgonzalez

Shortly after Republican FCC Commissioners repealed federal network neutrality protections late in 2017, state lawmakers began introducing legislation to protect their constituents. California’s AB 1999, introduced as one possible antidote to the FCC failure in judgment, passed the General Assembly on August 29th and is on its way to Governor Jerry Brown.

Read the final version of the bill and the Legislative Counsel Digest here.

Let the People Serve the People

As local communities have investigated ways to protect themselves from throttling, paid prioritization, and other activities no longer banned, they’ve looked at investing in publicly owned infrastructure. Rural communities where national Internet service providers are less motivated to deploy have always struggled to attract investment from the same large companies known to violate network neutrality tenets. Assembly Member Ed Chau’s AB 1999 addresses rural communities’ need for better connectivity, solutions that can preserve network neutrality, and challenges in funding broadband infrastructure.

California’s community service districts (CSDs) are independent local governments created by folks in unincorporated areas. CDSs provide services that would otherwise be provided by a municipality. Residents usually join together to form a CSD and do so to establish services such as water and wastewater management, garbage collection, fire protection, or similar services. A CSD also has the ability to create an enhanced infrastructure financing district (EIFD) in order to finance the development of a broadband network.

The EIFD statute granting the authority allows communities, including CSDs, to join together regional projects for a range of financing purposes. Tax Increment Financing (TIF) and various bonding mechanisms are a few examples.

The law currently on the books, which AB 1999 will change, requires CSDs to first determine that no private entity or person is willing to offer broadband in their sector before they are allowed to invest to do so. If they manage to get past the requirement but an entity or person enters the picture and is willing to provide those services, the...

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Posted August 28, 2018 by lgonzalez

Plenty of local communities are interested in the possibilities of creating publicly owned Internet infrastructure but pause when it comes to funding. This week on the podcast, Christopher interviews Jase Wilson, CEO, and Lindsey Brannon, Head of Public Finance, from Neighborly. The firm is working with local communities and using an innovative approach to financing publicly owned infrastructure projects, including broadband networks.

Neighborly provides an online investment platform that allows individuals to invest in projects funded through municipal bonds. In addition to more traditional projects suited to the muni bond market, such as transportation, education, and housing, Neighborly is working with local communities that want to develop open access municipal networks. In this interview, Jase and Lindsey describe how the open access network fits so well with the firm's philosophy.

In addition to helping drum up the capital for muni deployment, Neighborly sharpshooters recognize that the opportunity for individuals to invest directly in a municipal project in their community will help the project ultimately succeed. After all, the investment is about more than turning profit when it’s providing fast affordable, reliable connectivity in your own hometown.

Lindsey and Jase discuss some of their past work and talk about the new Community Broadband Accelerator program that offers additional tools to communities investing in open access fiber networks. Specifics about the program are available on the Neighborly website and during the interview we get to hear more about the advantages of participating in the Community Broadband Accelerator program.

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

This show is 36 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to ...

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Posted June 5, 2018 by lgonzalez

On May 30th, New Hampshire Governor Chris Sununu signed SB 170, a bill local community leaders had watched for more than a year. The measure will allow municipalities to bond for publicly owned Internet network infrastructure. Advocates, local elected officials, and citizens have been seeking the authority for years. SB 170 may raise some questions as it's implemented, but the bill is significant because it symbolizes this state's decision to expand local authority for broadband investment, rather than limit the power of local communities.

Read the final version of SB 170 here.

A Better Measurement

As we reported more than a year ago, SB 170 sought to make changes in existing law by allowing local communities to bond for Internet infrastructure. The bill sat in committee until last November, when it was amended and picked up again. The final version of SB 170 allows communities to bond for projects that will connect premises that don’t have access to broadband as defined by the FCC — 25 Mbps download and 3 Mbps upload.

Should the definition of broadband at the FCC increase to faster speeds, so will the definition as it applies in New Hampshire. This is a welcome approach as big ISPs around the country have in recent years tried to convince state legislators to reduce the speed definition of broadband in state legislation. Many is the time well-meaning or well-funded state lawmakers decided to use the incumbent-dictated 10 Mbps / 1 Mbps or even 4 Mbps / 1 Mbps in order to appease the likes of AT&T or CenturyLink. Some states, such as New Hampshire, are realizing that such slow thresholds translate into very little investment into the type of Internet access residents and businesses need. Other states can learn from New Hampshire...

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Posted May 22, 2018 by lgonzalez

When municipalities and other local governments are planning for publicly owned Internet infrastructure, they must coordinate many moving pieces to get the project going and to keep it on a successful track. In this interview, Christopher and Tom Coverick, Managing Director at KeyBanc Capital Markets, discuss one of the most important components of community network planning: finance.

Christopher and Tom met up at the May 2018 Broadband Communities Summit in Austin, Texas.

In addition to some of the types of bonding and other mechanisms communities use to fund their projects, Christopher and Tom discuss the politics and ancillary issues that affect local leaders’ decisions to take the step to finance for a project. Risk is a consideration and it affects the cost of financing. Tom advocates that financing should be part of the equation early in the planning process and he explains why his experience has led him to this conclusion. Christopher and Tom also talk about some creative funding techniques that local communities have used to make borrowing more palatable and suitable for their unique situations.

This show is 25 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

Read the transcript for this show here.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license. 

Posted February 20, 2018 by christopher

When the Eastern Shore of Virginia needed better Internet access, in part to ensure NASA could achieve its mission, Accomack and Northampton counties created the Eastern Shore of Virginia Broadband Authority. Its Executive Director, Robert Bridgham joins us for episode 294 of the Community Broadband Bits podcast.

We talk about why they used an Authority and how it was initially funded with grants that were later repayed because the network was so successful. They also used some community development block grants though the network has since expanded with its own revenues. 

The network both leases lines to independent ISPs and provides services directly. And it is expanding its Fiber-to-the-Home network to more neighborhoods each year in an incremental fashion. Read more about Eastern Shore of Virginia Broadband Authority here.

This show is 22 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

Read the transcript for this show here.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Posted February 13, 2018 by christopher

In Virginia, Arlington has found new ways to use its municipal network to reduce the digital divide. Katie Cristol, Chair of the Arlington County Board, and Jack Belcher, County Chief Information Officer, join us for episode 293 of the Community Broadband Bits podcast to explain what they are doing.

We discuss how a new residential development, Arlington Mill, will feature affordable Internet access delivered via Wi-Fi for low-income families. It was financed in part with Tax Increment Financing and required a collaboration between multiple departments to create.

We discuss the challenge of creating such collaborations as well as some of the other benefits the ConnectArlington project has delivered.

Remember to check out our interveiw with Belcher from 2014 for episode 97 of the podcast, when we discussed the decision to begin offering connectivity to local businesses.

Read the transcript for this show here.

This show is 27 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

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