Tag: "financing"

Posted October 22, 2020 by Ry Marcattilio-McCracken

Along the banks of the Columbia River, Multnomah County (pop. 813,000), Oregon is considering a publicly owned Fiber-to-the-Home (FTTH) network after being handed a study more than a year in the making. The report estimates that a countywide network reaching every home, business, and farm in a five-city area would cost just shy of $970 million, and bring with it a wealth of savings and other benefits to the community it serves.

Origins

The study has its origins in a 2017 push initiated by an advocacy group called Municipal Broadband PDX which has sought more affordable and equitable Internet access in the region. In 2018, the County Board of Commissioners agreed that it should be explored and approved the funding of a study, with the city of Portland and Multnomah County each contributing $100,000 and the remaining towns of Fairview, Gresham, Troutdale, and Wood Village joining the effort to collectively contribute an additional $50,000 for funding. Over the next year, CTC Technology and Energy conducted a comprehensive survey, analysis, and evaluation, and the results were delivered at the end of September.

The report offers good news: the majority of residents in Multnomah County want a publicly built and operated FTTH network, and it would be economically viable to provide symmetrical gigabit service to as many of the more than 320,000 households as want it for $80/month. At a projected 36% take rate on a 4% bond over a 20-year period, the network would cost somewhere in the neighborhood of $966 million, depending on a host of local and market factors, some of which are fixed and others subject to change. It would see net positive income by the end of its fourth year of operation, and see a total of more than $54 million in positive net income by the end of its 20-year depreciation period (a standard model for fiber infrastructure, though they often last longer). These numbers change when adjusting the take rate and interest rate, but in the vast majority of scenarios, building a community owned FTTH network in Multnomah County is feasible. 

Broadband in Multnomah County

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Posted October 20, 2020 by Ry Marcattilio-McCracken

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-McCracken

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-McCracken

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 ...

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Posted October 8, 2020 by Ry Marcattilio-McCracken

US Ignite has announced a new initiative called Project Overcome which will fund five projects looking for novel solutions to broadband connectivity problems in communities around the United States.

Th endeavor, funded by a $2 million National Science Foundation grant, will “support the selection and buildout of five proof-of-concept network deployments designed to connect both rural and urban communities in novel ways.” More than three-quarters of the funding will go directly to project awards, with the aim to:

[C]ollect data to measure the technical and social impacts of different connectivity strategies [in order to] discover patterns of success that can be repeated on a larger scale across the country, and to catalog the distinctions that emerge based on variations in the communities served.

The Application Process

An RFP will come out in the next few weeks, with winners chosen by early spring. From the website, competitive applications will:

Be chosen based on the use of innovative technologies, such as mesh networks and new spectrum access solutions, as well as creative deployment models that leverage both public and private sector partners. Participating teams should draw from some combination of academic, nonprofit, industry, government, student, and volunteer partners. The five proposals ultimately selected will reflect a mix of population density characteristics, demographics, geographic regions, housing types, local and industry collaborations, and technical approaches.

US Ignite is an initiative of the National Science Foundation’s Office of Science and Technology Policy (OSTP) which aims to advance connectivity efforts around the country. It leans heavily on creating partnerships between private, public, educational, and nonprofit entities to develop next-generation network technology, experiment with open access, and explore the potential of software-defined networks. As part of this effort it plays a role in advancing the...

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Posted October 6, 2020 by Ry Marcattilio-McCracken

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 Ry Marcattilio-McCracken

This week on the podcast Christopher welcomes back Will Aycock, General Manager of Wilson, North Carolina’s municipal network Greenlight, and Rebecca Agner, Communications and Marketing Director for the city of Wilson.

Christopher talks with the duo about what it took for the city to be named one of the ten best small towns in the country to start a business in 2019, and the city’s efforts to use its municipal infrastructure to launch an affordable new ridesharing initiative which takes into account social distancing needs and user cost during the COVID-19 pandemic.

They also spend time discussing how Greenlight is spearheading efforts to make sure the county’s most economically vulnerable residents have options to connect in 2020, including a public housing initiative that makes sure low-income residents have an affordable, reliable connection and a flexpay program that gives residents the option to pay for small chunks of Internet access according to their means and needs. 

Finally, the group dives into the network’s future plans as it approaches paying off the last of its debt in the near future.

This show is 31 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 6, 2020 by Christopher Mitchell

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 Mitchell

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 25, 2020 by Ry Marcattilio-McCracken

Last December we wrote about Connecticut’s long-awaited victory by court affirmation in the fight to let its cities attach to utility poles at no cost in pursuit of spurring municipal broadband efforts. A similar effort seems to have stalled in its neighbor to the north, with HD 4492 languishing in the Massachusetts Legislature’s Telecommunications, Utilities and Energy Committee. 

The bill, “An Act To Establish Municipal Access To Utility Poles Located In Municipal Rights-Of-Way,” is simple. It modifies Chapter 166, Section 22a of the state’s General Laws to eliminate pole attachment fees for cities working to build broadband networks to reach “unserved or underserved areas” (as defined by the Massachusetts Broadband Institute (MBI)), shifting the expense instead to the current pole owner(s). John Barrett introduced the bill and two dozen fellow legislators co-signed it. It calls for: 

Notwithstanding any provision of law to the contrary, for the purpose of safeguarding access to infrastructure essential to public health, safety and welfare, an owner of a shared-use pole and each entity attaching to that pole is responsible for that owner's or entity's own expenses for make-ready work to accommodate a municipality's attaching its facilities to that shared-use pole: a) For a governmental purpose consistent with the police power of the municipality; or b) For the purpose of providing broadband service to an unserved or underserved area.

Up in the Air

For parts of the country where aerial fiber sits at the core of network builds as a result of challenges posed by underlying geology (bedrock), overlying geography (topography), or other concerns that preempt underground construction, utility poles are the answer. Massachusetts has more than a million of them, and for projects just navigating the franchise areas of electric utility pole owners [pds] alone could be a daunting task. Getting timely, affordable access for make-ready work is an obstacle which can easily stall and kill a broadband project even when the...

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