FTTH

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Consultant Argues Never Used Financing Mechanism Also Won't Work in Palo Alto

I was troubled to see Broadband Communities publish an odd and misleading story about Palo Alto in the May-June issue [pdf]. Authored by Stephen Blum of Tellus Venture Associates, a consultant that has been hired by Palo Alto in the past, it showed a remarkable level of ignorance about community owned fiber networks and broadband more generally. The title alone, "Can FTTP Work in Palo Alto?" is just odd. Why exactly would FTTP not work in Palo Alto? It works in hundreds of other cities and towns, most of whom are less well positioned than Palo Alto for such a venture. A more honest title would have been "Consultant Argues Never Used Financing Mechanism Also Won't Work in Palo Alto." Blum made a very good case for that narrow argument but fails to lay out any convincing evidence that a variety of other models are doomed. Parts of the article can only be called cable and DSL boosterism - such as repeating the talking point that AT&T's U-Verse and Comcast already offer "high levels of service at competitive rates." Competitive to what? Neither can deliver the speeds offered by modern fiber networks and are only "competitive" if one ignores the much slower upstream speeds, higher prices, lesser reliability, problems of oversubscription, and poor customer service one gets from those providers. Reminds me of "Slick Sam" from Lafayette and the "functional equivalence" between DSL and FTTH.
Blum apparently knows better - that Palo Alto residents are "happy" with the existing services because they have not spontaneously marched down El Camino Real demanding faster speeds at lower prices. This is the wrong measure - reminiscent of the now oft-quoted Henry Ford line that if he asked people what they wanted, they would have said "faster horses." The number of specific errors in this piece are many, and have been well documented by those familiar with the history of Palo Alto's studies. I want to focus on just a few. Let's start here:
Overall, 79 percent of households would have to pay $3,000 apiece to fully fund FTTP construction costs.
YIKES! Cue the foreboding music! Palo Alto has something like 25,000 households.

Westminster, Maryland, to Move Forward With Fiber Pilot Projects

Westminster, Maryland, began public consideration for community broadband investment last fall and has now decided to "stick our toe in the water and see how it works." The Carroll County Times recently reported that the community will move ahead with engineering for two community pilot projects.

Local leaders see this as an opportunity to flesh out any challenges for residential and business connectivity. Carroll Lutheran Village, a retirement community, was chosen for several reasons. From the article:

The residential pilot project, Carroll Lutheran Village, would cover approximately 90 acres, according to the feasibility study.

The area presents well-defined boundaries and enough population density to allow a relatively small fiber build to reach a relatively large group of currently unserved residents, the study states.

Carroll Lutheran Village will also provide insight into potential construction issues around single and multi-family housing, and the benefits and impacts of telehealth, according to the study.

Westminster's business pilot project, located in the Westminster Technology Park, is near the Carroll County Public Network (CCPN). The feasibility study notes the location as a good candidate for economic development and also a relatively dense area. We had a great conversation with Gary Davis from CCPN in episode #43 of the Broadband Bits podcast. Davis relayed how the CCPN is saving money and creating opportunities for Caroll County Public Schools.

Both Westminster projects include local cost sharing for construction; the city will use capital benefit assessment funds specially designated for such improvements. Estimate for both projects is $650,000.

Westminster's long-term goal is to connect every resident and business in the city. Like the situation all over the county, Westminster cannot convince large providers to bring the connectivity they need for economic development. 

Waverly, Iowa: Community Fiber Network Possible Thirteen Years After Vote

The Waverly City Council in Iowa recently voted 5-2 to establish a communications utility and to move ahead with a feasibility study. We spoke with Diane Johnston, Waverly Light and Power (WLP) General Manager, who told us the decision to get this far started over a decade ago.

In 2000, the community passed two ballot measures that sat dormant until this year. At the time, incumbents Mediacom and Qwest (now CenturyLink) did not meet the needs of residents, who were increasingly frustrated with poor service and shoddy customer relations. Incumbents cherry-picked the local commercial segment, ignoring smaller businesses and establishments more challenging to serve. When asking for better connectivity, Johnston says local businesses "hit the wall." Incumbents flatly refused to invest in Waverly.

The 2000 ballot measures, establishing the municipal telecommunications utility per Iowa law (requiring a majority vote) and having the entity governed by WLP's board of trustees passed with 86 percent and 80 percent of the votes. Clearly the public wanted more choices but Johnston told us the time was just not right. A feasibility study, focused on phone and video service, prompted Mediacom and Qwest to make some improvements and improve customer service. As far as WLP was concerned, the problem was solved and Ordinance 970 went on the shelf.

Since 2000, businesses and residents have approached WLP about establishing the utility but the proposal did not gain traction until six months ago. When reviewing the strategic plan for the electric utility, WLP's Board of Trustees concluded that Waverly and WLP needs a telecommunications utility to stay vital.

Princeton, Massachusetts, Moves to Design Phase

Princeton, Massachusetts, continues to move steadily forward with its municipal broadband initiative. We first reported on the community's plans in the Spring of 2012. The community approved funding for design services in May and recently hired G4S Technology to design the FTTH network for municipal government, schools and residents.

The Digital Journal reports:

The design will take into consideration more than 1,350 homes situated on Princeton’s 80.62 miles of road resulting in more than 425,600 feet of fiber optic cable. It will encompass access to all homes, including those set back from the road and those with underground utility services. A small number of Princeton homes located on Route 140 that rely on electrical services provided by the town of Sterling will be excluded from the completed design.

“We are excited to work on the design phase of this project with the town of Princeton,” said Bob Sommerfeld, President of G4S Technology. “We believe bringing broadband into smaller communities across the state will make a tremendous impact on economic growth, education and public safety. Community members will also enjoy the speed, reliability and convenience that high-speed broadband services will provide them on a daily basis at their schools, libraries, offices and homes.”

The design will be developed this summer anticipating a town vote this fall based on the design. A two-thirds vote will be required at a special town meeting and will ask the voters to borrow funds for the project.

Catching Up on Clarksville - Community Broadband Bits Episode #51

Clarksville is the fifth largest city in the state but was among the first networks in nation to offer symmetrical fast connections with a 10 Mbps basic offering when it launched. Christy Batts, Broadband Division Manager of Clarksville Department of Electricity, joins us to share some of the lessons learned and successes from Clarksville, which is now offering a gigabit everywhere in the community. Clarksville has a significant population attached to a military base, which results in significant churn - meaning frequent connect and disconnect requests. High churn is costly to utilities. But having its own fiber network helps to keep costs lower for other utility services as well as benefiting the community. However, Clarksville also had some difficulties that led to a large change in management. Though the network has not been subsidized in any way, it is only now on track to be where the utility wants it to be financially. And finally, Christy Batts offers some thoughts on how to engage a local Chamber of Commerce. Read the transcript from our discussion here. This show is 25 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment! Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to Eat at Joe's for the music, licensed using Creative Commons.

Ames Tribune Editorial Board Wants a Gig

We continue to see more and more of what we might call "gigabit fever." This is not just a "me too" bubble centered around superfast Internet access. It is a recognition by more and more communities that the refusal of their cable and DSL duopoly to invest in next-generation networks is materially harming their future. Shortly after Cedar Falls announced it was the first community in Iowa with universal access to a gigabit courtesy of the municipal utility, the Ames Tribune made the case for a gigabit there also. Ames is home to the excellent Iowa State University (as is Cedar Falls, with U of Northern Iowa). I can praise them as long as I don't say anything about the Hawkeyes, rivals to my beloved Gophers. Unfortunately, the municipal utility in Ames is less than enthusiastic about following the Cedar Falls approach.
Yet Don Kom, director of the City of Ames Electric Department, tells us: “There has been no discussion at my level of bringing fiber from the city to our customers. We’re not having that discussion.” Certainly the city has many pressing issues and priorities to address, but super-fast Internet service ought to be high on its list. Besides the fact that it’s the wave of the future and we ought to try to keep pace with that wave, Ames has an impressive history of ambitious and innovative achievements.

Vermont's ECFiber to Expand This Summer

Good news for Vermonters who want connectivity from the East Central Vermont Fiber Optic Network (ECFiber). The community owned network recently raised another $430,000 from local investors who purchased tax-exempt promissory notes. As a result, the nonprofit can now expand another 20 miles. Approximately 100 more households and businesses will soon have access.

Twenty-three towns belong to the consortium; Montpelier is the largest. The network currently serves 325 customers via 50 miles of fiber. Warren Johnston reports in the Valley News:

“Before the fall, we’ll have people connected in Chelsea, Vershire, Thetford, Tunbridge, Royalton and Sharon, and a lot of the people in Strafford, along with service to several neighborhoods in Norwich, [ECFiber Chariman Irv Thomas] said.

The nonprofit has raised about $3.5 million through grants and investment loans from community members.

Although residents wanting service are not required to loan money to ECFiber, the tax-free notes promise a good return for investors, ranging from 5.3 percent to 7.65 percent, depending on the type of note.

Johnston also spoke with Wynona Ward, an attorney with Have Justice Will Travel, a nonprofit legal service for victims of domestic violence and abuse in Vershire: 

“It’s just wonderful. It’s like going from the horse-and-buggy age to the jet age overnight,” said Ward, who got the service on April 23. “I’ll always remember the date. It’s made such a difference in our lives.”

The new system lets all of the firm’s five computers to be online at one time, something that the old system would not allow. Clients and lawyers now can send photographs and case files to her office, which would have crashed her previous system.

“We used to plan an hour a week to do our payroll online. Now, we can do it in a matter of minutes. It’s a tremendous savings of time,” she said. The new system also gives firm members an opportunity to keep up with online training.

Small Michigan Town Issues RFP for FTTH Network

The community of Sebewaing, located in the "thumb" of Michigan is moving closer to its own FTTH network, which will be the first new municipal FTTH project in the state.

Because of a state law impinging on local authority in Michigan, local governments must first issue an RFP and can build a telecommunications network themselves if they receive fewer than three qualified bids. If the community builds the network themselves, it probably must adhere to the RFP as if it were a private entity. This approach ignores the fact that a community operates a network with different incentives than a private company, so the two are not interchangeable. 

We wanted to know more about this effort, so we contacted Melanie McCoy, Superintendent of the municipal utility Sebewaing Light and Water. We discovered that the town of 1,700 residents, known for its beet farming, has several factors going for it. 

Communities with their own utilities already in place have personnel, equipment, and expertise which saves money and time. And because they already own the utility poles, they are often able to get started quickly rather than waiting for other firms to do "make-ready," which can take months as wires are shifted on poles. Sebewaing has a municipal fiber loop currently in place - another plus. McCoy tells us the fiber was installed in 2001 and 2002 at a cost of about $50,000.

Private Internet choices were limited to dial-up for about $20 per month or a T1 connection for around $1,000 to $1,500 per month. At the time, Sebewaing Light and Water shared a T1 connection with local businesses.

Residents, business and government needed better connectivity and community leaders also realized the need to boost economic development. Sebewaing Light and Water leadership also wanted to increase efficiency with a SCADA system and considered a telecommunications utility a good investment. And looking toward the future, they knew installation of the fiber would position them favorabley for future investment. 

Exploring Conduit Policies - Community Broadband Bits Episode #48

At any conference dealing with building broadband networks, one hears talk of open trench policies or "dig once" approaches. For today's episode of Community Broadband Bits, City Manager Scott Lazenby of Sandy, Oregon, joins us to talk about how Sandy has proactively placed conduit underground for fiber use. We discuss the instances where it is practical and where it is not to place conduit when other utility work has open streets. Sandy has an ordinance requiring new developments to have conduit placed with other utilities at no cost to the city. We previously spoke with Sandy's IT Director in Episode 17 of Community Broadband Bits and have written about Sandy numerous times. Read the transcript from this episode here. We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address. This show is 17 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment! Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to Eat at Joe's for the music, licensed using Creative Commons.

Longmont City Council Approves Fiber Network

Longmont, Colorado, will move ahead with plans to offer fiber connectivity to the entire community. After presenting this business plan to the City Council, members voted unanimously on May 14th to support the measure. Scott Rochat from the Times-Call attended the meeting.

Residents stepped forward to express their opinions and all but one urged the council to "get it done."

From the Rochat article:

The plan projects a four-tier price structure. For residential rates, that's proposed to range from $39.95 a month for 10 megabit-per-second upload and download, to $99.95 for 100 mbps.

The study estimates that 35 percent of homes would choose to get their Internet service from the city, still leaving plenty of the field for the existing providers.

"Competition is good," Councilman Alex Sammoury said. "Just because we're a government entity doesn't mean the free market doesn't apply to us. If someone can do it better, more power to them."

The plan proposes to have the city provide Internet directly and work with a private partner for phone service.

Video service would not be provided, Roiniotis and the Uptown consultants said, because Internet video has eroded the market for traditional television.

Vince Jordan, LPC Manager, began the presentation and stressed economic development, education, and lifestyle.

Representatives from Uptown Services reviewed recommendations and the business plan. They answered about 3 hours of questions from council members, including skeptical members who want to avoid becoming the next Provo, Utah. Neil Shaw and Dave Stockton from Uptown Services provided some perspective between the two communities. They pointed out the large number of successful networks in states across the country.

Longmont had been prepared to incrementally expand the network using the cash on hand from the many years of dark fiber leasing. Such an expansion could be done without borrowing but would take a long time (more than ten years, likely) to get to everyone. This is the approach Danville, Virginia, has been using.