financing

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Monica Webb Talks WiredWest on The Take Away

Monica Webb, long-time spokesperson and current chairman for Massachusetts' WiredWest, recently spoke with John Hockenberry on The Take Away. Monica briefly described why the coalition of local communities chose to take control of their own connectivity with a regional municipal effort.

Fittingly enough, Monica describes how she had to drive 20 minutes in order to access a connection that was reliable enough for the interview.

As we reported in January, WiredWest is currently working with specific communities to determine detailed cost estimates so they can assess their ability to deploy infrastructure with as much information as possible. As you will hear in the interview, funding is one of the primary hurdles facing smaller rural communities in western Massachusetts.

The interview runs a little over 4 minutes.

For a longer discussion on WiredWest, listen to Christopher interview Monica for Episode #2 of the Community Broadband Bits podcast from the summer of 2012.

Benton Foundation Article Dives Into Upcoming FCC Decision and Section 706

Kevin Taglang, recently published an excellent explanatory post for the Benton Foundation entitled What Section 706 Means for Net Neutrality, Municipal Networks, and Universal Broadband. He provides just the right amount of detail to get one up top speed on the upcoming decision and why it promises to be so influential. Additionally, he summarizes many federal programs relating to Internet access.

We already know that February 26th will be an historic day in telecommunications. On that day, the FCC's decision on new network neutrality rules and municipal broadband networks has the potential to literally change millions of lives. The decision will impact education, economic development, jobs, healthcare, communications, utilities - you name it. 

Taglang fittingly describes the series of findings from the FCC as a three act play. Read the text of the play, anticipate the conflict, see how the characters clash, and you will be the dramaturge. 

Act I: The FCC Considers U.S. Broadband and Finds It Lacking:

In addition to other factors, the FCC looked at the way we defined broadband (4 Mbps/1 Mbps), what capacity is needed to align with the way households use broadband (as in multiple devices simultaneously), and how ISPs market their services (25 Mbps as a minimum downstream acceptable). 

Accessibility rates showed divergent results based on urban and rural geography. The agency reassessed what is needed in schools for students and staff. The result was a decision to redefine broadband as 25 Mbps/3 Mbps and, once the agency determined that, the landscape changed dramatically. In January, the FCC adopted the Broadband Progress Report for 2015 [PDF], which asked what is advanced telecommunications capability now and are all Americans able to access that capacity?

From the arcticle:

Minnesota Border to Border Broadband Awards Announced

The Minnesota Office of Broadband Development recently announced the recipients of the Border to Border Broadband grants, funding established by the state legislature in 2014 to facilitate rural broadband projects. Seventeen public and private entities will share a total of $19.4 million in Greater Minnesota.

According the the Department of Employment and Economic Development (DEED) press release, the projects will help bring better connectivity to 6,095 households, 83 community institutions, and 150 businesses in areas of the state considered unserved or underserved. This funding pays for up to 50 percent of the cost of each project. 

The need in rural areas of the state is intense; 40 projects submitted applications for a total of $44.2 million in requests. Among the recipients are some familiar projects.

RS Fiber Cooperative is awarded $1 million for its FTTH project in Renville County and and parts of Sibley County. We wrote a case study on the RS Fiber project in our report All Hands on Deck: Minnesota Local Government Models for Expanding Fiber Internet Access. According to the press release:

Total project costs are $3.32 million; the remaining $2.32 million (70 percent local match) will be provided by a line of credit that R-S Fiber Telcom has committed and partner equity. This project is part of a larger cooperative project estimated at $38.46 million that will upgrade broadband services to several thousand locations in the region. Hiawatha Broadband Communications will provide operational capacity. 

Federated Telephone, sister cooperative to Farmers Mutual Cooperative will also receive an award for a project in Big Stone County:

Local Communities Still Committed to RS Fiber Cooperative

Green Isle and nine other communities have reaffirmed their commitment to the RS Fiber Cooperative, reports the Belle Plain Herald. The project began in 2010 as a collaboration between a number of local county and municipal government entities in south central Minnesota. Local residents rallied behind the project, which was designed to connect both towns and surrounding farms. 

Unfortunately, the project faced difficulties due to incumbent intimidation and the high cost of deployment in such a large geographic area. Sibley County officials chose to back out of the project, requiring a business plan reboot. Locals, recognizing the critical need for better connectivity chose to instead form the RS Fiber Cooperative.

The Herald reports that in its first 2015 City Council meeting, Green Isle voted 3 - 1 in favor of a resolution stating continued support to the project. Similar resolutions have passed in Winthrop, Gibbon, Fairfax, Lafayette, Gaylord, Stewart, New Auburn and Brownton. 

Henderson and Arlington, located in Sibley County, have opted to not participate in the coop. 

Coop Directors endorsed an updated business plan in November, reported Prairie Business Magazine. The project will bring better connectivity options to approximately 6,200 customers in Sibley County, parts of Renville County, and portions of Nicollet and McLeod Counties. The revised business plan, scaled back from the original plan to bring fiber to every property in Sibley and Renville Counties, reduces project costs by more than 30 percent.

Participating communities will collectively issue $13.7 million in general obligation bonds. Local investors, bank loans, and other financing will provide the remaining $42 million. The project is scheduled for completion in 2018.

Phil Keithahn, RS Fiber Coop financial planner, told KEYC Mankato that the network will have triple-play capabilities, bringing Internet, phone, and video to remote rural areas. Community leaders are motivated by the need to improve connectivity for agriculture, tele-medicine, and education.:

Massachusetts Towns Consider WiredWest Opportunity

Eleven Select boards in Franklin County are ready to take the next step with WiredWest Cooperative. According to the Recorder, the towns of Ashfield, Charlemont, Colrain, Hawley, Heath, Leyden, New Salem, Rowe, Shutesbury, Warwick and Wendell have all approved nonbinding resolutions taking them into the financial planning phase.

Last fall, the organization and the Massachusetts Broadband Institute (MBI) agreed to meet on a regular schedule. The two organizations began meeting with town Select Boards in order to update them on financial obligations to help them decide whether or not to participate.

WiredWest Cooperative has worked with The Western Massachusetts Legislative Delegation On The Last Mile Broadband Solution to create a strategy to improve connectivity statewide. In addition to WiredWest, the group included MBI, the Franklin Regional Council of Governments (FRCOG), and the Mass TechCollaborative. Several state lawmakers, including Senator Stan Rosenberg, participated in the delegation.

The state will supply approximately $40 million in grant funding to MBI, that will disburse the funds, to defray the costs of deployment in hill towns. The Recorder reported:

[Monica] Webb, [speaking for WiredWest Cooperative] said the first thing town officials want to know is how much of that $40 million grant will be available to reduce their town’s share of the cost.

“The first step was to determine which towns want to participate,” said Webb. “Now that we know, there’s detailed engineering to be done. ... The numbers the towns will get will be our best estimate. We’re still refining our best estimates, but I expect that will be done over the next month.

“Towns have told us they need that information as soon as possible,” she added. “We’re working to make that happen.

Maine Legislature All About That Broadband in 2015

Maine continues to be a hot spot in the drive to improve connectivity as the 2015 state legislative session opens. According to the Bangor Daily News, 35 bills have been introduced that deal with broadband issues.

The story also notes that several lawmakers have introduced bills that propose funding from the state. House Republican Norman Higgins advocates broadband infrastructure in rural areas of the state:

“I think most people understand that in this day and age for us to be competitive, that’s one of the necessary tools,” Higgins said, noting he’s found bipartisan support on the issue. “The question, I think becomes: How do we do it? And who does it?”

He proposes allocating millions of dollars to expand the availability of grants to municipalities that want to build and own high-speed fiber-optic networks that would be open to companies that want to serve businesses and homes, similar to the model pursued by Rockport, South Portland, Orono and Old Town.

Momentum is growing outside the Senate and House Chambers as well. In December, Governor LePage asked the ConnectME Authority to consider redefining "underserved" for projects it considers funding. The Authority obliged, reported the Bangor Daily News:

The new standard set Friday includes for the first time speed requirements for uploads, which supporters of the change said would serve small businesses.

The new standard would qualify any areas with broadband connections slower than 10 megabits per second for both downloads and uploads — a 10-10 symmetric standard — as “unserved.”

For those working on the issue of broadband, the energy is contagious:

“It’s exciting as someone who cares about broadband that there’s so much energy around it,” [public advocate with the Maine’s Public Utilities Commission Timothy] Schneider said. “And it ties into this whole trying to figure out how to do economic development not based around Maine’s legacy industries.”

Chanute Receives State OK to Bond for FTTH Deployment

The Kansas Corporation Commission (KCC) will allow the city of Chanute move forward with its plan to serve residents and local businesses with its municipal network reports the Wichita Eagle. KCC staff had recommended that the community, which has built out a network over the course of decades, receive KCC approval. 

In keeping with an antiquated 1947 state law, K.S.A. 10-123, the city needed KCC approval to issue the revenue bonds. In keeping with the statutory requirements, the KCC found that the expansion is necessary and appropriate for the city, its consumers and investors. The KCC also also determined that the expansion will not duplicate an existing utility service.

In its filing [PDF], Chanute indicated that its network is an essential part of the local economy and the community's future:

Chanute is a rural community, and like all rural communities, access to broadband is fundamental to the well-being of its citizens and even to the survival of the community itself. Chanute does not need to convince the Commission of the importance of having access to a high- speed broadband network. The Commission is well aware of that need. The investments contemplated for Chanute's broadband network are necessary and appropriate to allow Chanute to meet that need in its territory.

As the city points out, incumbents AT&T and Cable One, do not offer anything close to the level of service of the planned gigabit FTTH network. As we cover in our 2012 report on Chanute, AT&T and Cable One seem to have no interest in serving the community beyond minimum expectations. It was the need for better services that inspired the city to build out its infrastructure and offer services to local businesses.

DubLINK Network Supports Economic Development, Health Care, and Supercomputing

Award-winning supercomputing apps, medical research, economic development, and quantum computing advances. What do they all have in common? They all depend on the DubLINK network running underneath Dublin, Ohio, a suburb on the Northwest edge of Columbus. The city of 43,000 people has 125 miles of fiber optics in the ground, both within its own boundaries and in the form of fiber purchased by the city within metro and regional networks. 

DubLINK began in 1999 as a public private partnership with the Fishel company to build an institutional network. In the wake of the 1996 Telecommunications Act, Dublin worried that a recent massive investment of $70 million in streetscaping would be undone as competing providers dug up newly paved streets to install fiber optics. To avoid this, the City signed a franchise agreement with Fishel to install a multi-conduit system, with the city receiving some conduit for its own use.  

Using 1.25” conduits installed in the city’s existing sewer system, the network runs for 25 miles underneath Dublin’s business district and connects six city buildings, who use their own lit fiber for data and voice services, eliminating expense leased line fees. This has allowed the city to save approximately $400,000 per year for the last 12 years in connectivity and information technology expenses.

In 2004, Dublin spent $3.5 million to purchase 96 strands running 100 additional miles through Columbus FiberNet, bringing the total length of the DubLink network to its current 125 miles. FiberNet is a duct system that runs throughout a significant portion of central Ohio, including Columbus and its surrounding suburbs.

Muscatine, Iowa, Upgrading to FTTH

Muscatine Power & Water (MP&W) announced in late November that it will upgrade its municipal hybrid fiber coaxial (HFC) communications network to an FTTH network. The upgrade will allow Muscatine to offer gigabit speeds. Construction is set to begin in 2016; the FTTH network is scheduled to go live in 2017.

According to the press release, the community hopes to capitalize on the new technology for economic development opportunities, better residential services, and replace an aging system with future proof infrastructure. From the press release [PDF]:

Consideration was also given to two other plans that would have either maintained or incrementally improved the existing HFC system. As stewards of the public trust, the Board of Trustees felt the other options were costly short-term fixes and that FTTH was clearly the superior option.

“Tonight’s decision assures that Muscatine Power and Water will continue to be a leader in telecommunications,” said LoBianco, “the new system will be able meet the bandwidth needs of the community for years to come while reducing maintenance and improving reliability. It ensures that the communications capabilities in Muscatine are as good as in any large city which enjoys the benefits of FTTH technology.”

Muscatine sits in the far southeast corner of the state and is home to approximately 29,000 people. The community established a municipal water utility in 1900, an electric utility in 1922, and its communications utility in 1997. According to the press release, the community was unhappy with the previous incumbent and an overwhelming majority of local voters elected to establish what is now called MachLink. The network offers video and Internet access.

A Muscatine Journal article reporting on a recent meeting of the Board of Water, Electric, and Communications Trustees notes that the project will be funded with an interdepartmental loan, one of the three most common funding mechanisms. (For more on funding municipal networks, check out our fact sheet [PDF].)

North Georgia Town Considering Fiber for Business

The City Council of the city of Commerce is considering using its existing fiber resources to offer connectivity to local businesses. At a November 3rd work session, Council members reviewed the plan and, according to the Main Street News, members voiced support for the idea.

“We’ve been actively working on this for months,” [City Manager Pete] Pyrzenski told the council. “We’ve been counseled on, we’ve talked through the options… this is a pretty viable utility for Commerce.” 

“We are ready to pull the fiber,” Pyrzenski declared. “Our role is to supply the fiber. We’re not going to get into cable TV, not going to get into telephone, just high-speed Internet.”

“Businesses have been looking for an alternative,” noted Mayor Clark Hill.

Windstream now serves the community of 6,500 but there have been significant complaints and there are no other options in this north Georgia town.

The city will need to invest $70,000 for equipment and legal fees. The network plan will use an existing line and will run additional fiber to expand the reach to more commercial customers. At this point, the city estimates a 5 - 10 year payback but that period may be reduced if local businesses respond positively. The city will fund the deployment with an interdepartmental loan from their municipal electric utility. Commerce also owns a municipal gas utility.