Tag: "financing"

Posted February 16, 2021 by Ry Marcattilio-...

Update: The Community Broadband Action Network (CBAN) notes that it looks like SSB 1184 is dead, having been shelved in committee yesterday. They say the "bill was briefly discussed by a subcommittee of the House Commerce Committee on February 16th, but postponed 'indefinitely.'"

Original story:

Less than a year after an attempt to hamstring municipal broadband in Iowa, local opponents are at it again. If you’ve been around the block, Senate Study Bill 1184 will look remarkably similar to SSB 3009 from last January 2020, and that’s because it’s nearly identical. 

Like its last incarnation, SSB 1184 threatens the viability of any new municipal broadband effort by placing draconian financial barriers in the way, and, if passed, handcuffs existing networks as well as those under construction. Though there are no public fingerprints on the bill, the word around the capitol is that Mediacom is behind it. Among its provisions are those that would:

  • Prohibit cities and towns from issuing loans from the general or reserve fund or an existing electric utility to a broadband division at an interest rate lower than the prevailing market rate set by private financing institutions.
  • Prohibit government entities from forgiving debt related to the construction or operation of a telecommunications system.
  • Set a maximum interest rate at which a municipal broadband utility could borrow to finance a new network, cutting off funding avenues
  • Disallow existing municipal networks from responding to the market in setting rates.
  • Prevent municipal network from bundling multiple city services in single transactions.

Individually, any of these conditions would represent a significant win for a provider looking to restrict competition with cities interested in building Internet infrastructure; collectively, they would be a gigantic step backwards in a state that ranks...

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Posted February 4, 2021 by Ry Marcattilio-...

The rate of connectivity in Indian Country lags behind the rest of the country. As of December 2018, only 60% percent of Tribal lands in the lower 48 states had high-speed Internet access. A new case study report [pdf] from the Institute for Local Self-Reliance delves into the experiences of four Native Nations — the Coeur d’Alene, the Nez Perce, the Fond du Lac Band of Ojibwe, and the St. Regis Mohawk — as they constructed their own Internet service providers. 

The case studies examine the unique challenges Native Nations confront as they seek to build Internet infrastructure and address the digital divide while also retaining the tribal sovereignty that is essential to their identity and heritage. As the report states, “Native Nations are sovereign over their data, and have the obligation to protect that information and use it for the betterment of tribal citizens.” 

Each section of the report contains key takeaways that other tribes could use and learn from. The report also pulls these individual case studies together for comprehensive key lessons that Native Nations, lending institutions, and the federal government can use to improve the process for implementing tribal ISP’s, which include:

  • Improving Access to Capital. Native Nations do not have the same access to capital as municipalities or as private Internet service providers. Due to that fact, lending institutions should address their processes for lending to Native Nations to determine how to better support network projects, and the federal government should regularly evaluate funding opportunities for network projects by Native Nations.
  • Avoiding Single-Purpose Funding. Federal funding is often limited to a single purpose, such as connecting Indian Health Services facilities or schools & libraries, which tends to create Internet “silos” rather than broad access.
  • Recognizing the Preparation Needed to Take Advantage of Opportunities. Native Nations that have already started projects or have plans to start projects can easily jump on new funding opportunities if they have a core team of network professionals ready and waiting for the next funding opportunity.
  • Respecting Native Nations’ Right to Spectrum. The FCC should not lease licenses to spectrum over any...
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Posted January 28, 2021 by Ry Marcattilio-...

In a livestream just before Thanksgiving, Christopher was joined by Althea Networks CEO Deborah Simpier and NetEquity Networks Founder and CEO Isfandiyar Shaheen (Asfi) to discuss an innovative financing model for building Fiber-to-the-Home (FTTH) with the potential to bring quality broadband connections to the millions of homes around the country that are currently un- or underserved. Best described as a  “fiber condominium” approach, it pairs collectively owned network infrastructure with the equity boost that comes with bringing symmetrical gigabit access to residential housing.

In a new video, Shaheen explains how it works in both the short term and over time, with last-mile fiber connections made by leveraging Home Equity Lines of Credit (HELOC) in modest amounts from local credit unions and a payment arrangement that covers everything from the construction to customer service calls. 

The meat of the discussion starts around 6:35, with Shaheen describing how a $60-70/month payment for fiber Internet access breaks down. It covers everything needed, including payments for the HELOC to the local credit union, transit rates for the middle-mile network operator, maintenance fees, and an organizing entity like NetEquity Networks to bring all these stakeholders together and manage the connection.

It’s a fascinating model, with some new relationships that need to be created but no revolutionary technology or fundamentally new financing structures. 

Watch the video below:

 

Posted January 19, 2021 by Ry Marcattilio-...

This week on the podcast, Christopher talks with Larry Thompson, CEO of Vantage Point Solutions, a South Dakota-based company which provides engineering, consulting and regulatory services for ISPs of all sizes. The two talk about how the variety of subsidy and grant programs we’ve built to get broadband out into rural areas and make sure folks can afford Internet access came about, and the policy changes we’re likely to see in the near future to make sure existing networks and new construction remains viable. 

In particular, Larry and Christopher spend time talking about the Universal Service Fund (USF) and National Exchange Carrier Association (NECA), and how we come to terms with an increasing need for support in the face of a declining base from which to draw funds. Christopher and Larry discuss the USF’s sustainability as the contribution level nears 30%, alternatives to existing models, and what it will take to commit to fast, affordable broadband for all Americans in the decades to come.

This show is 42 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.

Transcript coming soon.

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 ...

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Posted January 7, 2021 by Ry Marcattilio-...

As reported by KCHA news, Charles City's progress on municipal broadband has been halted by the covid 19 pandemic and consideration of budget priorities in the coming year. 

 

Posted December 23, 2020 by sean

If you have been following our series on the Accessible, Affordable Internet for All (AAIA) Act, you already know the proposed legislation calls for a $100 billion investment in expanding broadband access and affordability in unserved and underserved parts of the country. In this fourth installment of the series, we explore the part of the bill that contains the bulk of the funding. Of the $100 billion proposed in the bill, $85 billion of it can be found in the Title III - Broadband Access section.

Amending the Communications Act of 1934, Section 3101 of the bill appropriates $80 billion for “competitive bidding systems” to subsidize broadband infrastructure. That is to say, it requires the Federal Communications Commission (FCC), and states, to use “competitive bidding systems” for Internet Service Providers (ISPs) to bid on broadband deployment projects in “areas with service below 25/25 Megabits per second (Mbps), and areas with low-tier service, defined as areas with service between 25/25 and 100/100 Mbps.” The term “competitive bidding” seems to suggest a reverse auction process, though it hardly makes sense for each state to set up such a system given the logistical challenges. A legislative staffer responded to our email earlier this year saying he believed that language would allow for state programs that solicited applications from ISPs and scored them for evaluation, much like Minnesota’s Border-to-Border Broadband program operates. However, he noted that the FCC would interpret that language ultimately. More on this below. 

Prioritizing Higher Upload Speeds

It’s worth noting that this part of the bill implicitly acknowledges the insufficiency of the current FCC definition of a minimum broadband speed of 25/3 Mbps. As it stands now, the FCC defines “unserved areas” as parts of the country where there is either no Internet access or broadband speeds under 25/3. This legislation raises the bar and broadens the definition of “unserved areas.” It’s a step in the...

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Posted December 15, 2020 by Ry Marcattilio-...

We've written a lot about RS Fiber, a broadband cooperative operating in two rural counties in south-central Minnesota. This week on the podcast Christopher talks with two representatives from the cooperative which serves almost three thousand members in Renville and Sibley counties. Our first guest is Jake Reiki, a corn and soybean farmer and Board Chair for RS Fiber. We’re also joined by Jenny Palmer, City Administrator for Winthrop and Treasurer for the cooperative.

Christopher, Jake, and Jenny talk about the trials that shaped a network which fostered some division but which the community now takes for granted, its hybrid fiber and wireless approach to connectivity, what having fast, affordable broadband has done for families and business in the area, and where the network sits financially moving ahead as it continues to expand and see robust, steady growth. 

For more on the history of the network, read our 2016 case study Fertile Fields for New Rural Internet Cooperative, or listen to Episode 198 and Episode 99 of the podcast.

This show is 41 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed

Don’t forget to check out our new show, Connect This!, where Chris brings together a collection broadband veterans and industry experts live on YouTube to talk about recent events and dig into the policy news of the day. 

Transcript coming soon.

Listen to other episodes here or view all episodes ...

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Posted December 7, 2020 by Ry Marcattilio-...

For timely updates, follow Christopher Mitchell or MuniNetworks on Twitter and sign up to get the Community Broadband weekly update.

Built in 2008 with an eye toward the future and operated with local priorities in mind, Greenlight has a long track record of putting people first. In a new case study, the Institute for Local Self-Reliance explores the wide-ranging community benefits of Greenlight, the city-owned Fiber-to-the-Home network in Wilson, North Carolina.

Download Wilson Hits a Fiber-to-the-Home Run with Greenlight Municipal Broadband Network.

The case study details how it has been able to quickly adapt and expand service during the pandemic, as well as the host of advantages and overall value brought to the city over the last decade in education, equity, and economic development. For example:

Access for All

  • In 2016, Greenlight began a partnership with the Wilson Housing Authority (WHA) to connect hundreds of public housing residents to $10/month low-cost fast Internet access.
  • The network targets barriers to service adoption that go beyond cost, including a flexpay system which allows users to prepay for Internet access instead of requiring large deposits or a credit check. It also allows users to load funds into their account for individual days of network access.

Economic Development

  • Greenlight has been named as a key factor in Wilson’s economic revitalization.
  • Wilson’s fiber infrastructure has helped local businesses succeed and is a factor in the relocation of new companies to the area. In 2019, Wilson was ranked the 10th best small city in the country to start a business.
  • In 2016, Greenlight began co-sponsoring the GigEast Exchange Conference. The GigEast Exchange serves as a technology hub, incubator, and networking space for everyone in the community.

Education

  • All schools in the county were connected to the network by 2012.
  • In 2019, Greenlight partnered with Wilson Community College to develop a curriculum to train the...
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Posted December 7, 2020 by Ry Marcattilio-...

In a new case study, the Institute for Local Self-Reliance explores the wide-ranging community benefits of Greenlight, the city-owned Fiber-to-the-Home network in Wilson, North Carolina. The case study details how it has been able to quickly adapt and expand service during the pandemic.

Built in 2008 with an eye toward the future and operated with local priorities in mind, Greenlight has a long track record of putting people first. A few examples are:

Access for All

  • In 2016, Greenlight began a partnership with the Wilson Housing Authority (WHA) to connect hundreds of public housing residents to $10/month low-cost fast Internet access.
  • The network targets barriers to service adoption that go beyond cost, including a flexpay system which allows users to prepay for Internet access instead of requiring large deposits or a credit check. It also allows users to load funds into their account for individual days of network access.

Economic Development

  • Greenlight has been named as a key factor in Wilson’s economic revitalization.
  • Wilson’s fiber infrastructure has helped local businesses succeed and is a factor in the relocation of new companies to the area. In 2019, Wilson was ranked the 10th best small city in the country to start a business.
  • In 2016, Greenlight began co-sponsoring the GigEast Exchange Conference. The GigEast Exchange serves as a technology hub, incubator, and networking space for everyone in the community.

Education

  • All schools in the county were connected to the network by 2012.
  • In 2019, Greenlight partnered with Wilson Community College to develop a curriculum to train the next generation of network technicians and managers.
  • Throughout the pandemic, Greenlight has gone even further to support its community. When schools quickly converted to remote learning in the spring of 2020, the network installed more than 3,000 feet of fiber to make sure a local history teacher, Michelle Galloway, could teach from home. The network has also made its Lifeline program permanent, offering basic video conference-capable connections for $10/month for residents to activate as needed.

Read the...

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Posted December 2, 2020 by Ry Marcattilio-...

On Episode 4 of Connect This! Christopher is joined by Jeff Christensen (President, EntryPoint Networks), Dane Jasper (CEO and Co-Founder, Sonic), and Travis Carter (CEO, US Internet) to talk about open access models, and the challenges and opportunities they present. During the discussion they discuss barriers to entry, differentiation, dark fiber, and why we don't see more cities pursuing projects like this. They also have a little fun sharing what they think the FCC has gotten right and wrong over the last 4 years, and what Comcast's recent announcement about bandwidth caps will mean for users and competing Internet Service Providers (ISPs).

Mentioned during the episode was Chris' conversation with NetEquity Networks' Isfandiyar Shaheen and Althea Networks' Deborah Simpier about innovating financing models for expanding fiber networks.

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Read the transcript for this episode.

 

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