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Lexington, Tennessee Will Soon See Fiber Competition Thanks To Local Utility

Lexington, Tennessee is the latest U.S. city that will soon see the expansion of more affordable fiber thanks to the city-owned utility, Lexington Electric System (LES). LES’ recent $27.49 million state grant award will be the backbone of a new initiative that will both improve the utility’s electrical services, and deliver a long overdue dose of broadband competition to the area. 

Cooperatives and utilities were huge winners in the latest round of awards from the Tennessee Emergency Broadband Fund, itself made possible by the American Rescue Plan. Of the $446.8 million in awards doled out by the state, utilities and cooperatives walked away with $204.4 million — or nearly half of all funds.

LES Lands Major Grant Funding

The second biggest grant recipient was LES, whose $27.49 million award will be used to deliver future-proof fiber to the 22,000 residents across Henderson, Decatur, Benton, Carroll and Hardin counties that already receive electricity service from the utility. 

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The utility’s original business plan estimated that it will take five years and roughly $42 million to deploy 2,101 miles of new fiber to about 88 percent (18,183) of its current electric customer base. It then proposed taking another five years — and an additional $1.2 million — to reach the remainder of the utility’s harder to reach service users.

More recent estimates proposed by the utility peg the full cost of the fiber deployment at somewhere between $50 million and $55 million.  

East Carroll Parish Residents in Louisiana Fend Off Sparklight Challenge

Residents of East Carroll Parish are “cautiously celebrating” the decision by Louisiana’s Office of Broadband Development and Connectivity to uphold a $4 million GUMBO grant to bring fiber-to-the-home (FTTH) Internet service to over 2,500 households in one of the most poorly connected parts of the state.

As we reported last month, the grant had been challenged by the regional monopoly cable provider Sparklight after the state had awarded the grant to Conexon. The challenge, which claimed the cable company already serves 2,856 homes in the region, brought the project to a grinding halt on the same day residents were set to launch a sign-up-for-service event.

News that the challenge was rejected brought a sigh of relief to members of Delta Interfaith, a coalition of congregations and community-based organizations in the Louisiana Delta pushing for better broadband. Coalition members had formed an Internet task force during the Covid-19 crisis as families struggled to get access to reliable broadband.

The community and elected officials were elated when Conexon, an independent rural Internet provider, was intially awarded the grant in July – only to be frustrated when they learned of Sparklight’s challenge. Concerned that Sparklight (formerly known as Cable One) was simply gaming the state’s grant challenge process in an effort to stave off competition, community members initiated a letter-writing campaign to bring light to the challenge and pressure state officials to resolve the challenge as soon as possible.

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Sparklight 'Failed to Carry Its Burden of Proof'

Mountain Home, Idaho Embraces Open Access Fiber

The city of Mountain Home, Idaho (pop. 14,000) is embracing open access city-run fiber as it pushes to expand affordable broadband to all city residents. Its stated goals: to boost broadband speeds and availability, while lowering prices 25 to 35 percent for all city residents. 

Like so many city-owned broadband projects, city leaders say they were inspired by the success of Ammon, Idaho, which owns and operates an open access fiber network. That network has dramatically boosted competition in the city, drawing nationwide attention for both lower rates, and the ease with which locals can switch providers with the click of a mouse

“The city is not trying to compete with the private sector,” the Mountain Home website proclaims. “The city will simply build and operate the fiber optic infrastructure. This infrastructure will then be open to any service provider that seeks to offer services in the city.”

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With chipmaker Micron planning to build a new $15 billion fabrication plant in nearby Boise, city leaders hope to lure potential new employees through affordable broadband access. So they’re both deploying fiber conduit to every new development, and pushing an open access fiber network to lure additional competitors to the region.

That said, the network deployment is only just getting started.

Siloam Springs, Arkansas Is Weighing Its Options For Citywide Fiber Build

In 2012 the residents of Siloam Springs, Arkansas voted against building their own fiber network after some misleading electioneering by the regional cable monopoly Cox Communications. A decade later and local residents are still frustrated by high prices and a lack of competition, as city leaders are still contemplating what exactly they should try to do about it. 

In June, the city released a new report by Finley Engineering and CCG Consulting showing the width and depth of the city’s broadband issues. That report was formally presented at an August city meeting before the city’s recently-formed Broadband Advisory Committee.

Survey Said … 

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The survey showed that 11 percent of Siloam Springs residents still lack access to broadband, 77 percent of city residents want greater broadband competition, and 88 percent say they’re paying way too much for broadband service. While residents also complained about sluggish upload speeds and outages, the biggest consistent complaint was high prices. 

“The number one issue that came through loud and clear in the surveys is broadband pricing – practically every resident we heard from thinks current broadband is too expensive,” the study authors noted. 

Siloam Springs is heavily dominated by a duopoly of just two providers: Centurylink and Cox Communications. But even calling it a duopoly is generous; the city’s survey found that Cox enjoys a 92 percent broadband market share within city limits. The lack of competitive threat reduces any real incentive for the cable giant to lower prices or expand service. 

Holland, Michigan Votes to Build Citywide Open Access Fiber Network

In early August, the city of Holland, Michigan (pop. 33,000) voted to fund the construction of a citywide, open access fiber-to-the-home (FTTH) network. It’s the culmination of almost a decade of consideration, education, planning, and success, and builds on decades of work by the Holland Board of Public Works (HBPW) and city officials to build and maintain resilient essential infrastructure for its citizens. It also signals the work the community has done to listen to local residents, community anchor institutions, and the business owners in pushing for an investment that will benefit every premises equally and ensure fast, affordable Internet access is universally available for decades down the road.

In the Works

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Holland has been formally exploring the need for better local connectivity since before 2016. It has been aided in this effort by the fact that the Holland Board of Public Works (HBPW), which already provides electricity, water, and waste water services, has been maintaining a small institutional fiber network that it first installed in 1992 (see current coverage in map, right, current as of May 2019).

Caribou, Maine Moves Forward On Citywide Fiber Plan

Last March, Caribou, Maine city council members expressed unanimous support for a charter amendment allowing the Caribou Utilities District to establish a broadband infrastructure division. It was just the latest move in a multi-year quest by the city to finally deliver affordable fiber broadband access to every last city resident.

Groundwork for the effort was laid one year ago, when city council members approved using $159,000 in American Rescue Plan Act funds to craft a broadband engineering study with the help of Caribou’s Business Investment Group and executives from local ISP Pioneer Broadband.

Late last March, the Maine Senate unanimously approved LD 1949: “An Act to Amend the Caribou Utilities District Charter to Include Broadband Services,” which formally, as the name makes clear, provided approval for the CUD to expand its services into broadband access.

Now the hard work begins. 

The plan as it currently stands is to build an open-access dark fiber network to every unserved Caribou residential and business location. The city would own the network, but private ISPs would provide last mile service to customers. 

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“We would like two or more ISPs to provide citizens with a choice of providers,” Hugh Kirkpatrick, Caribou Utilities District general manager, recently told the Bangor Daily News. “Competition should keep monthly prices lower and customer service higher.”

Pharr, Texas Leads Regional Effort to Build Municipal Fiber Network

On the southern border of Texas in the Rio Grande Valley, Pharr Texas is the home of the largest commercial bridge from Mexico into the U.S. Now, the city is working on building an equally impressive virtual bridge to every home in Pharr with the construction of a municipal fiber-to-the-home (FTTH) network.

The progression has been steady despite pandemic induced setbacks, as city leaders are determined to solve the connectivity challenges in Pharr by leveraging the assets the city already owns while taking advantage of the unprecedented amount of federal funds now available to help communities expand access to broadband. To that end, the city has created regional partnerships, completed a feasibility study, and launched a pilot project. Now, Pharr officials are moving ahead with the construction of a city-wide municipal network. 

Wake Up Call in Rio Grande Valley

Pharr has a population of almost 80,000 people of which 94 percent identify as Hispanic or Latino with over 30 percent of families living below the poverty line. Their public meetings are often bilingual. But, it was in 2015 that the Federal Reserve Bank of Dallas reported that the Rio Grande Valley was on the wrong end of the digital divide. The report also highlighted the impact that had on the communities in the region:

The study involved focus groups with colonia residents. One theme that arose from the conversations with residents was the lack of access to the internet. The report found that the digital divide was a factor preventing residents from accessing regional labor market opportunities. Additionally, the report described the challenges colonia students face in school because of their inability to complete homework assignments due to lack of internet service and computers at home.

When earlier this week ILSR caught up with Jordana Barton Garcia, author of the report, she explained that “colonias” are informal neighborhoods where people live with no (or limited) infrastructure. Residents are sold lots without existing infrastructure, from water to broadband. 

Building at the Speed of Light in Pharr, Texas - Episode 518 of the Community Broadband Bits Podcast

This week on the podcast, Christopher is joined by two representatives from Pharr, Texas (pop. 79,000), which has embarked on a citywide fiber-to-the-home (FTTH) network build that is seeing strong local support and fast progress in recent months. Jose Pena is the IT Director for the city, and and Guillermo Aguilar works as a Partner at Brownstone Consultants, which is serving as a project manager for the network build. Jose and Guillerma talk with Christopher about the impetus for TeamPharr, the municipal effort which formally kicked off in 2017 with a feasibility study.

Jose and Guillermo share how the city moved to a fixed wireless pilot project on the southern part of town a few years ago before extending the network to a collection of city parks and then making the commitment to a full citywide buildout in 2020. They detail their early work in the state, which places some barriers in front of communities looking to take their telecommunications future into their own hands, and the help they got from Mont Belvieu (which also runs its own network). Jose and Guillermo share the phenominally fast progress the team has made, from finishing the design phase in September of last year, to connecting the first household in January 2022, to passing 70 percent of premisestoday.They also talk about their work to offer subscribers low pricing tiers ($25 and $50/month for symmetrical 500 Mbps and gigabit service, respectively) and their efforts to help households sign up for the Affordable Connectivity Program.

Check out the videos at the bottom of this story for more about why Pharr undertook the project and the progress the city has made so far.

This show is 40 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

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. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Brownsville, Texas and Lit Communities partner to Build Citywide Fiber Network

Brownsville recently took a Texas-sized step toward the creation of better broadband options for its residents and businesses, as city commissioners voted in late July to enter into a public-private partnership to build a city wide fiber network known as BTX Fiber

As reported by The Brownsville Herald:

At a Wednesday morning ceremony in city commission chambers, Brownsville Mayor Trey Mendez and Brownsville Public Utilities Board CEO and General Manager John Bruciak signed an agreement with Brian Snider, CEO of Lit Communities, that will allow the fiber infrastructure to be completely built out.

The city commission at its July 19 regular meeting approved the public-private partnership between the city, LIT Texas LLC and its subsidiary BTX Fiber, “for the construction, operations and maintenance of city-wide broadband infrastructure, including but not limited to incorporation and approval of a Right of Way and Encroachment Agreement; Engineering, Procurement and Construction Contract; and Middle Mile Connection Agreement and Grant of Indefeasible Rights of Use Agreement.

Wake up call for Brownsville

From the outside it may seem like an overnight success. But, like most stories, the planning started years ago.

Duluth, Minnesota Ponders A Major Bet On Open Access Fiber

Like countless U.S. communities, Duluth, Minnesota (pop. 86,000) got a crash course on the importance of affordable broadband during the Covid-19 crisis. Those struggles in telecommuting and home education helped fuel a dramatic new broadband expansion plan that, if approved by the city council, could revolutionize affordable access citywide.

Last April, the Duluth Economic Development Authority signed a $65,000 contract with Entrypoint LLC to examine the possibility of building a community-owned fiber network in Duluth. The result: a new Digital Access Master Plan that proposes the city spend $7-9 million to build a pilot open access fiber network in Lincoln Park next year. 

“Reliable high-speed internet is no longer a luxury,” Duluth Mayor Emily Larson proclaimed in a recent state of the city address. “It’s an essential utility no less important to our future success than our roads, water, and electricity.”

A Pilot Project, and Potentially More

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Under the proposal, 75 percent of the new network would be buried fiber and 25 percent would be microtrenched along public roads. The $7 to $9 million estimated price tag is based on a 60% take rate, short-term interest at 5 percent, and a long-term interest rate of 3 percent for 20 years. The initial pilot project would bring fiber to an estimated 1,900 Duluth residents next year. 

“A 60% take-rate may seem aggressive given the strong market position of the incumbent cable operator,” the plan states. “However, the survey data suggests a strong desire among residents and businesses in Duluth to see competition, choice, better pricing, and the reliability of a fiber optic network.”