Tag: "financing"

Posted October 20, 2020 by Ry Marcattilio-...

A little over three years ago in Episode 232 we heard from Lyndon Township, Michigan just after a ballot initiative passed to fund and build a municipal network. 43% of the community turned out for the vote, and the measure passed by a ratio of two to one. 

Today we revisit Lyndon Township Broadband, with Christopher joined by Ben Fineman, President of the Michigan Broadband Initiative, as well as Jo Anne Munce, and Gary Munce, both of whom were essential in the ballot campaign and who volunteer with the broadband initiative.

Christopher catches up with what’s been going on since, and what things look like now that the network has almost everyone hooked up. The township owns the network, with area electric cooperative Midwest Energy and Communications operating it on a day-to-day basis. The group talks about the network’s phenomenal 75% take rate, the current state of its debt, and how it just increased speeds on two of the service tiers with no additional fees. Lyndon Township serves as a great example of a community that decided to tax itself for a fiber network and are reaping the rewards. 

This show is 35 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 for this episode.

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 October 19, 2020 by Ry Marcattilio-...

More than a year and a half of planning and negotiation will culminate in fiber infrastructure laid to every household in one Tennessee county over the next few years. West Kentucky & Tennessee Telecommunications Cooperative (WK&T), using its own funds along with money from the Henry County Commission and the state of Tennessee, will extend its existing network to cover the entire county and give residents access to its broadband network and services.  

Expanding Their Commitment

The recent news serves to expand a partnership that was originally announced in the spring of 2019. At that time, WK&T (founded 1951) pledged $2 million in investment and was awarded $2 million in matching funds from the second round of the state’s Broadband Accessibility Grant Program to reach 912 unserved homes in Henry County. 

Local officials have decided to aim higher, however, with the county commission joining the effort to commit $3 million of its own funds to reach as many as 1,400 homes in what County Mayor Brent Greer explained in an interview is the first phase of a countywide build that will take shape over the next 24-26 months. The cost of the first phase will be approximately $8 million, with $3 million coming from the county commission, $3 million from WK&T, and $2 million from the state. By the time it’s through, though,  the project will total $20 million and bring WK&T infrastructure to every home, business, and farm. 

Henry County sits in the northwest part of the state and has a population of 32,000 spread across a little over 13,000 households, with the city of Paris holding about a third of the population. The county is predominantly white, with average household incomes below $41,000/year. As part of the terms of this first phase, 325 homes low-income will receive free access for three months...

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Posted October 13, 2020 by Ry Marcattilio-...

This week on the podcast Christopher welcomes back Lee Brown, President and CEO of Erwin Utilities, to talk about what’s been going on since we last spoke with them more than three and a half years ago. Erwin is a town of around 6,000 and the county seat of Unicoi County, Tennessee, along the state’s eastern border. 

The two revisit the success Erwin has seen with an incremental Fiber-to-the-Home buildout over the last six years. The utility at this point has no debt, and covers the whole town aside from one remaining pocket to be complete early next year. It has expanded into the county, bringing affordable 25mbps and gigabit Internet access to residents, and enjoys a take rate of nearly 50%.

Lee reflects on the benefits of Erwin’s strategic approach to building a fiber network and lessons learned. In 2019 it completed the transition to becoming the Erwin Utilities Authority, which will give it flexibility moving into the future, and in April of this year connected its 3000th customer. 

This show is 26 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 for this episode.

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 ...

Read more
Posted October 6, 2020 by Ry Marcattilio-...

A new report out by the American Library Association shows how community anchor institutions — and libraries in particular — can serve as central players in expanding tribal connectivity efforts around the country. “Built by E-rate: A Case Study of Two Tribally-Owned Fiber Networks and the Role of Libraries in Making It Happen" [pdf] looks at the striking success of tribal efforts in New Mexico in putting together a coalition of actors to dramatically improve Internet access in the region.

The report examines networks built by two consortiums situated in the middle of the state in the summer of 2018: the Middle Rio Grande Pueblo Tribal Consortium and The Jemez and Zia Pueblo Tribal Consortium. An endeavor initially spearheaded by the Santa Fe Indian School (which long ago recognized the need for virtual learning, the value of fast, affordable Internet and the ongoing cost of slow, poor, high monthly costs), “Built by E-Rate” details how they came into being and the obstacles they faced along the way, and offers policy recommendations moving forward.

Faster Speeds, Lower Costs

Each project cost $4.2 million, with E-Rate funding covering 95% of the costs after each managed to secure state funding via general obligation bonds for their effort. They both consist of 30 miles of tribe-owned, 12-strand fiber and an additional 30 miles of two-strand dark fiber leased from Zayo, a privately owned fiber infrastructure outfit. Both terminate in the Albuquerque GigaPoP operated by the University of New Mexico — a nonprofit initiative to get affordable, high-speed broadband to educational and research institutions in the state. On average, the consortia increased Internet speeds from 3 EMgabits per second (Mbps)_ to 100Mbps while decreasing costs from $106/Mbps to $3/Mbps as a result of the new network. Both are well-positioned for scalability and future growth...

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Posted October 6, 2020 by christopher

An article by Ammon's own Bruce Peterson explains how this model in Idaho works. From the May/June 2018 Broadband Communities Magazine. It explores how the model works for residents, providers, and the municipality.

Posted October 2, 2020 by christopher

Traverse City has officially launched its new municipal Fiber-to-the-Home network in the northern Michigan town of 15,000. The city's municipal electric utility, Traverse City Light & Power (TCL&P), owns the network and operates it in a partnership with Fujitsu, with the latter building and initially helping operate it, but turning management over to TCLP as the city utility feels comfortable with each aspect of the operation.

TCL&P Fiber is being built incrementally, starting in the downtown area where the economic heart of the community lies. The first phase is estimated to cost $3.5 million and will offer 2,200 locations service. The rest of the community will be connected in coming years and perhaps ultimately areas outside the current electric footprint.

Getting up to Speed

Traverse City has been working in the communications space for more than 10 years with dark fiber leases to major anchor institutions and key economic entities. In more recent years they were providing free Wi-Fi downtown while considering how to improve Internet access to smaller businesses and residents. For years, they examined various options, with serious consideration of an open access network where the city would build the infrastructure but other ISPs would use it to connect customers. 

In an interview today, TCL&P Executive Director Tim Arends told us that they moved on this project after sensing a lot of pent up demand for better service — with speed, reliability, and especially customer service as common complaints with existing service. Though TCL&P did not name check the existing providers, AT&T DSL and Charter Spectrum cable are the main incumbent providers.

In 2017 TCL&P's Board voted unanimously to move forward with a citywide fiber approach but did not plan to be a retail provider themselves. But in 2019, a new plan with Fujitsu evolved into the current approach. 

Last year,...

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Posted September 24, 2020 by Ry Marcattilio-...

Another year of the Broadband Communities annual summit is behind us, and it’s worth revisiting the most salient moments from the panels that touched on the wealth and variety of issues related to community broadband regulation, financing, and expansion today and in the future. We weren’t able to make it to every panel, but read on for the highlights.

Last Mile Infrastructure and the Limits of CARES Funding

The first day of the program saw some heavyweight sessions from Coalition for Local Internet Choice (CLIC) on last mile digital infrastructure. For communities at all stages of broadband exploration and investment — whether exploring an initial feasibility study, putting together an RFP, or already planning for the future by laying conduit as part of other projects — partnerships dominated the discussion, with timing and debt also serving as common themes. 

ILSR’s Christopher Mitchel helped kick off the conference by moderating the first panel in the Rural/Editor's Choice track, and was joined by Peggy Schaffer from Maine's Broadband Office (ConnectME), Monica Webb from Internet Service Provider (ISP) Ting, and Roger Timmerman, CEO of Utah middle-mile network UTOPIA Fiber

The group discussed the open access models to start, and the benefits that could be realized from two- or three-layer systems. UTOPIA Fiber has seen some explosive growth and spearheaded significant innovation recently as it continues to provide wholesale service to ISPs that want to deliver retail service on the network. Ting, which recently signed on to be one of two providers on SiFi Network’s first FiberCity in Fullerton, California, also acts as an example of what can happen when we break away from thinking about infrastructure investment and Internet access as one-entity-doing-it-all.

The relative merits of wireless (both fixed and small cell) generated a lively discussion, with the panelists talking about advances to the...

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Posted September 21, 2020 by Ry Marcattilio-...

This year’s Broadband Community Summit has gone digital to adapt to the ongoing public health crisis, but will still offer a wealth of information on and seasoned experts speaking to all sorts of topics relevant to community broadband networks. It runs this week from Tuesday to Friday, and interested parties can register here.  

Something for Everyone

Note that the Coalition for Local Internet Choice program has two panel sessions on partnerships of all colors and one on federal and state incentives on the first day of the summit. Other topics include:

  • Financing
  • Public-Private and Public-Public Partnerships
  • Telehealth
  • Funding Opportunities
  • Broadband Mapping

Speakers

The program also features a wide-ranging list of industry folks, equipment manufacturers, consultants and legal advisors, and others experts. See the full list here, but some notable names include:

  • Deb Socia — President CEO, The Enterprise Center
  • Roger Timmerman — CEO, UTOPIA Fiber
  • Jim Baller — President, CLIC
  • Dorothy Baunach — CEO, DigitalC, Cleveland, Ohio
  • Matt Dunne — Founder and Executive Director, Center on Rural Innovation
  • Ben Fineman — President & Co-Founder, Michigan Broadband Cooperative
  • Nancy Werner — General Counsel, National Association of Telecommunications Officers Advisors
  • Dr. Christopher Ali, PhD — Assistant Professor, Department of Media Studies, University of Virginia

What is Chris Up To?

Our own Christopher Mitchell will be moderating two sessions — one on last-mile infrastructure, and another on municipal broadband success stories. The first, on Tuesday from 11:20a-12:15p:

Last Mile Digital Infrastructure: Ownership models are evolving. Who will play the lead role in constructing? What entities, including cities, will own digital assets? Who will manage the networks?

Roger Timmerman — CEO, UTOPIA Fiber

Monica Webb — Director of Market Development and Government Affairs, Ting Internet...

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Posted September 17, 2020 by Ry Marcattilio-...

In the city of Fullerton, California (pop. 140,000), privately owned infrastructure builder and operator SiFi Networks has turned on the first section of what will be a city-wide, open access Fiber-to-the-Home network. The project makes Fullerton SiFi’s first FiberCity — a privately built, financed, and operated open access network it plans to duplicate in more cities across the country in the future. When complete next fall, the Fullerton FiberCity network will pass every home and business in the city, with the company's subsidiary, SiFi Networks Operations, selling wholesaling capacity to as many Internet Service Providers (ISPs) as want to enter the market. 

A Different Approach

SiFi’s FiberCity model remains somewhat unique in the United States, and is much more common in Europe and Asia. CEO Ben Bawtree-Johnson attributes their success to cracking the economic code for private investment in open access information infrastructure, which has seen more attention in recent years as investors and fund managers have seen opportunities. “[O]ur vision really is to create as many last-mile fiber optic networks as we can across the USA in a long term sustainable fashion,” Bawtree-Jobson remarked on an episode of the podcast last fall. “[W]e're all about long term, dry, low yielding, risk mitigated investments, so everything we do is based around 30-year plus type investments.”

Fullerton, according to SiFi, was an ideal candidate for its first FiberCity because it applied to be one of the original candidates (though not chosen) for a Google’s fiber program, begun in 2010. The company sees it as sitting in the Goldilocks’ zone in terms of size and population. Construction started last November, and currently consists of around 600 miles of fiber all underground via microtrenching. Nokia serves as the main equipment partner on the project. 

Turning on the Lights

The first residential customers...

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Posted August 10, 2020 by Ry Marcattilio-...

The United States Office of the Comptroller is hosting a webinar at the end of the month called “Banks Finance Broadband in Rural Areas & Indian Country” aimed at banks and local leaders looking to form partnerships to fund broadband projects for rural and tribal communities across the country. 

In addition to providing basic information on how community financial institutions can work with local governments, participants in a 2017 partnership which brought broadband to Fort Berthold Indian Reservation will be present to discuss their experience and answer questions.

Register for the event by clicking here.

New Rule, New Financing Options

Tribal communities face a host of ongoing connectivity obstacles, all of which have been exacerbated by the current public health crisis. Native student populations are much more likely to be affected by the homework gap, a problem that will remain as states and school districts struggle to put together a cohesive connectivity plan for the upcoming school year.

The program is one of the many that together come from the OCC's participation in the Community Reinvestment Act (CRA), passed in 1977. The CRA directs federal financial regulators (including the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation) to push FDIC-insured financial institutions to meet the credit needs of the communities they’re a part of, with emphasis on low- and moderate-income regions.

A new rule allows banks to consider broadband an essential infrastructure for financing projects, giving rural stakeholders wider access to capital for those kinds of ventures under consideration. It was adopted by the Federal Financial Institutions Examination Council, of which the OCC is a member agency, in July of 2016 [pdf]. The Council now cites Internet...

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