Concord, Massachusetts, has a strong literary history with famous authors like Thoreau, Emerson, and the Alcott sisters, but all puns aside, the town also has a long-standing community broadband network, Concord Light Broadband. 

Years ago, the community voted to build its own network from their electric utility, and they have just now transitioned to high-speed fiber optics.

From Electric to Broadband

Concord is one of only forty Massachusetts municipalities with an electric utility and in the early 2000s, their electric thermal storage system needed an overhaul. The technology, based on the phone system’s network, was becoming obsolete. The electric utility chose to overbuild the existing system with fiber optics in order to create a smart-grid to automatically read electric meters. Concord recognized the opportunity presented by a fiber network backbone spread throughout town.

It only made sense to look at broadband options; the only thing left to do was to build out the last-mile, the section of network that connects to the home or business. They estimated the cost for the smart-grid and last-mile to be $4 million and would finance it through municipal bonds. 

Once Bitten, Twice Shy of Big Incumbent Cable Companies

Large incumbent cable companies had not served the community well and the people wanted better connectivity. Massachusetts’ state law requires a town to vote at two consecutive town meetings to establish the authority to build a broadband network through the electric utility, commonly referred to as Municipal Light Plant or MLP. The MLP is the town department responsible for the transmission and supply of electricity to the residents and businesses in the town. As communities have started to develop their own municipal Internet networks, the MLPs have also taken on a similar role with regard to connectivity. After establishment of an MLP is approved, then the community votes again on funding for the initiative.

In 2003, the people of Concord began considering what they could accomplish with a municipal network, and they held the first vote at the Annual Town Meeting. The resolution passed by a 2/3rds majority vote. The second Annual Town Meeting was scheduled for April 2004.

The City Council of Upper Arlington, Ohio on Oct. 26 approved several contracts that will enable the community to build a municipal fiber-optic network to key anchor institutions for an estimated $2.5 million.

Upper Arlington’s project will provide high-speed Internet service for the city’s buildings, the Public Library, Upper Arlington city schools, and most city parks according to a news report from the Upper Arlington News. The 30-mile fiber network will serve about 40 locations around the boundaries of the city (population 34,000).

Besides establishing better connectivity between the three public partners’ buildings, the network is expected to provide opportunities for commercial companies to lease telecommunications services. The network would allow the city to lease some of the 288 fiber strands to commercial companies, such as other Internet Service Providers (ISPs).

Financing and Break Even

Under the cooperative arrangement, the library will contribute $17,616 annually, the city $68,484 per year and the school district $177,900 each year until the project is paid off. “These costs are derived from the amounts that each entity is currently paying for leased broadband connectivity between their facilities,” Upper Arlington Assistant City Manager Dan Ralley told us. 

The period anticipated to pay off the network construction is nine years with the school district and library able to extend the parties’ shared-services agreement for an additional 15 years after. The extensions would occur in three five-year segments.

Cost savings, broader bandwith

Ralley says the primary benefits of the new city fiber-optic network will be significantly lower long-term bandwidth and broadband access costs.  For example, the city of Upper Arlington expects to save about $1,280 a month for Internet service by building its own fiber network. Over 10 years, the city’s savings would total about $150,000.

And the municipal network will be a boon for the Upper Arlington public schools. In an Oct. 19, 2015 staff report, Ralley said:

In October 2015, government officials in Erie County, New York announced the release of a Request for Proposals (RFP) seeking an organization to study the feasibility of building a county-wide broadband network. Located in upstate New York and home to over 900,000 people, Erie County stretches over 1,200 square feet; the county seat is Buffalo.

Legislator Patrick Burke notes that community broadband projects have become a rare kind of government-led initiative that appeals to people across all political divides:

“It covers all grounds and sort of goes beyond political ideology. It’s a quality service. It could provide revenues that the county desperately needs, it could attract business, it could spark economic development and it could create jobs. So, there’s a little bit in this for everybody,” said Burke.

Pursuing Governor Cuomo's "Broadband for All" Mission

The effort to pursue the option to build the network in Erie County comes after New York Governor Andrew Cuomo released his “Broadband for All” plan earlier this year. The plan offers matching state funds up to $500 million to private companies that agree to help build broadband networks in underserved areas of the state. The governor’s initiative led the Erie County broadband committee and a group of industry experts to write an exploratory white paper considering ideas for expanding broadband in the region.

According to an article in The Public, Burke credits the white paper as the tool that convinced county leaders to issue the RFP to be ready when private partners come calling:

“Whichever municipalities or governments, or even private entities, are prepared and are in line to be competitive with this, they’re the ones who are likely to see the funds that are available,” Burke said.

As in the rest of the country, broadband is now a necessity for rural economic development in West Virginia. Taking on the challenge, Spruce Knob Seneca Rocks Telephone (SKSRT) cooperative overcame impressive obstacles to build a state-of-the-art fiber optic network. 

The cooperative operates in some of the most serene landscape in the United States and some of the most difficult terrain for fiber deployments. The region’s economy primarily relies on ski resorts and tourism from its namesake, Spruce Knob, the highest peak in the Allegheny Mountains. 

SKSRT’s service area also includes the National Radio Quiet Zone, which creates unique challenges for the cooperative. Established in 1958 by the FCC, the National Radio Quiet Zone protects the radio telescopes at the National Radio Astronomy Observatory from interference.  Because these telescopes are incredibly sensitive, the region is greatly restricted in deploying different types of telecommunication technologies. In certain areas of the quiet zone, closest to the observatory, wireless routers and two-way radios are prohibited. 

Because of the mountainous terrain and the technology restrictions, large telecoms had completely bypassed the sparsely populated communities, leaving them with few options for any sort of connectivity. Much of the isolated region still used the old ringdown operator-telephone system until 1972 when the community created SKSRT as a non-profit cooperative. SKSRT installed the latest in telephone infrastructure at the time and committed to encouraging economic development in the region.

Thirty years later, in 2008, the copper infrastructure that SKSRT had originally installed was in bad shape. The coop went to the Rural Utility Service to fund the needed copper improvements. RUS instead encouraged future-proof fiber. While other telecoms have integrated fiber slowly, General Manager Vickie Colaw explained in an interview with us that SKSRT took a different approach:

“It was evolving to a fiber world. That was when we decided to be total fiber-to-the-home.” 

At a September conference in Lexington, Kentucky, Next Century Cities (NCC) hosted an influential and diverse group of leaders from the municipal broadband arena to share their experiences as leaders in community broadband. Four audio recordings, which you can find on NCC’s website, include panel discussions on a variety of issues surrounding the topic of financing for next generation broadband.

Recording #1: “Lexington Mayor Jim Gray and the Kentucky Wired Story” and Panel Discussion “Federal Support for Broadband Projects” 

The first recording begins with Lexington Mayor Gray and the city’s Chief Information Officer as they discuss their ongoing efforts to make Lexington a gigabit city. These efforts are part of a broader initiative also discussed on building a statewide 3,000 mile fiber optic ring. Several Kentucky government leaders make remarks about the project, called Kentucky Wired, including their thoughts about the public-private partnership model that is helping make the project possible.

In the second part of the recording, former Rural Utilities Service Administrator and current Vice Chair of Broadband Communities Hilda Legg, leads a panel of several experts examining funding supports and offering recommendations and next steps for communities.

Listen to the audio here.

Recording #2: “Achieving the Last Mile”

Our own Christopher Mitchell, the Director of the Community Broadband Networks Initiative at ILSR and the Policy Director for Next Century Cities, moderates this panel that includes officials who have led municipal broadband initiatives in their communities. These officials share some of the challenges they have faced and solutions they discovered in their efforts to finance last mile infrastructure.

Recording #3: “Exploring Options and Approaches for Broadband Financing”

A lot has happened in Sanford, Maine since our last report on their municipal fiber optic network discussions. After a year of deliberations over different proposals, the city recently announced plans to begin building a 32-mile municipal fiber-optic network.

The city of Sanford is inside York County, situated about 35 miles southwest of Portland. The network will provide connectivity to businesses, government entities, non-profit organizations, and residences in Sanford along a limited route where there is sufficient customer density. City leaders plan to also provide a foundation for future expansion of the network to additional residential areas in the city. The network will be open access, allowing multiple ISPs to provide services via the publicly owned infrastructure.

The city will partner with Maine-based company GWI (Great Works Internet) to operate the network. Readers may recognize GWI as the same company working with Rockport, Maine's first community to invest in a municipal fiber network.

Once they complete the buildout, Sanford will be in an elite class of a just few cities nationwide that provide widespread access to 10 Gbps broadband. It is a bold plan for this city of just over 20,000 in a state that last year ranked 49th in the nation in average broadband speeds.

The Sanford Regional Economic Growth Council, a major driving force behind the project, sees the project as critical to their broader economic development efforts:

At a September meeting, the City Council in Peachtree City, Georgia unanimously approved a resolution to construct and operate a fiber-optic broadband network.  According to the City Council minutes from the meeting, the initial 22.54-miles of fiber will provide 1 Gbps broadband access to various facilities in the City Service area.

In addition to providing connectivity for government buildings, utility services, and medical and educational buildings, the city will target business customers in the “high end user category.”

Officials estimate the network will cost $3.23 million. To pay for the project, the Peachtree City Public Facilities Authority, an independent local government authority created by the state legislature in 2011, will enter into an intergovernmental agreement with Peachtree City. According the August 2015 Fiber Initiative plan, capital for the project will come from the Authority; the city will issue a bond and pay installments to the Authority under an Agreement of Sale.

For several years now, the city located 30 miles southeast of Atlanta has explored options to improve local connectivity. City leaders tried and failed to bring Google Fiber to the community of 35,000 people in 2010. The city attempted repeatedly to urge private ISPs like AT&T to address the problem with no success. In February of this year, city leaders began work on a study to explore the feasibility of a publicly owned fiber network.

City Council members citizens at the recent City Council meeting expressed concerns that the network will not pay for itself and taxpayers will be left to cover unpaid costs. According to a recent survey of local businesses, 100% of respondents reacted positively to the prospect of a municipal network for connectivity.

In order to achieve the plan’s objectives, the network will need 12 “high-end” commercial customers by the end of year 2.  The city’s consultant expressed confidence in meeting that first goal:

Communities along Mississippi's Gulf coast have recently suffered through disasters both natural and not, from Hurricane Katrina to BP's Deepwater Horizon blowout and aftermath. But they are investing some of the relief funds into infrastructure of the future to help recover. 

Biloxi and Gulfport city officials recently passed resolutions approving an intergovernmental agreement to bring better connectivity to Mississippi Coastal communities. The vote was the next step in the Mississippi Gulf Coast Fiber Ring initiative announced this summer by Biloxi Mayor Andrew "FoFo" Gilich to encourage municipal networks in the region.

The agreement will establish the Gulf Coast Broadband Commission, a public utility  charged with deploying, operating, and maintaining a fiber optic network in and between the two cities. The agreement also specifically grants the Commission the ability to seek out financing to perform its function. Other municipalities and counties can join the agreement as members after the Commission is established.

If other local governments want to participate, they must agree to minimum standards for expansion. Members must promise to offer symmetrical gigabit connectivity, commit to serve every residence and business within a community within 7 years of joining, agree to offer free public Wi-Fi, and require ISPs using the infrastructure to have a local customer service presence. The agreement requires state approval before it is finalized.

In July, Mississippi Governor Phil Bryant pledged $15 million to the project from the fund created by the Restore Act. The Act establishes how the state will disburse $2.2 billion paid by British Petroleum as fines for the Deepwater Horizon disaster in 2010. Biloxi settled with BP in a separate suit, accepting approximately $5 million and is considering directing at least some of those funds toward municipal fiber deployment.