The open access network in Ammon, Idaho, has been celebrated as visionary and viewed as a potential model for other communities seeking competitive local Internet access markets. A bill in the state legislature, however, aims to restrict local communities' ability to reproduce the Ammon Model, or any other publicly owned network, by imposing new restrictions on local efforts.

Read the text of the bill here.

Removing a Local Funding Option

H 490, introduced by Rep. Ron Mendive from Coeur d'Alene, states specifically that local governments have the authority to take the necessary steps to develop Internet networks and to offer services to the general public. Provisions in the bill that dictate how projects are financed, operated, and managed, however, transform the bill into a "muni killer" says Bruce Patterson, Ammon's technology director.

In a recent Idaho Business Review article (subscription required), Patterson described the language of H 490:

“On its face, it claims to authorize cities to have the authority to finance, build, and operate a communications network and offer a communications service, but each of the restrictions that follow make it impossible for a city to actually do those things. It is like telling your child: ‘Sure, you can play outside, just don’t leave the house.'”

Idaho Falls completed a publicly owned and operated a dark fiber network in 2010. Recently, city leaders unanimously decided to use the asset to offer citywide Internet access to the community. The vote followed a successful pilot project, commenced in March and completed this past September, which connected around 1,200 homes.

According to the East Idaho News:

Since that time, Idaho Falls Fiber officials have been gathering data and evaluating the costs and feasibility of expanding the high-speed fiber network through the rest of the Idaho Falls community.

...

“This kind of a public-private partnership is exciting. It allows the city to focus on infrastructure—something we excel at,” said Idaho Falls Mayor Rebecca Casper. “And, it allows local Internet providers to offer their internet services to residents where they previously could not get this type of infrastructure to deliver a reliable high speed Internet product. It captures the best of both worlds.”

Idaho Falls worked with UTOPIA Fiber on the pilot project, which included four local Internet access providers offering services via the Idaho Falls publicly owned fiber optic infrastructure. The open access network will continue to expand over the next four years within the Idaho Falls Power service area. UTOPIA Fiber will continue to work with the city to expand the network.

“Designing a system like this is a complicated operational and engineering function,” said [General Manager Bear] Prairie. “That’s why the Council approved the agreement for us to partner with UTOPIA Fiber, a not-for profit entity like Idaho Falls Fiber that has the experience in operating successful networks similar to our design. We are excited to have successfully demonstrated that utilizing our existing power utility infrastructure to install fiber lines coupled with UTOPIA’s software that opens the network to local Internet providers to use has proven to be an economic success for our city.”

Ammon, Idaho, got our attention years ago but as benefits from the city’s publicly owned fiber optic infrastructure continue to grow, others are taking notice. Most recently, contributing editor at Fast Company, Jay Woodruff wrote about the community’s investment in Fast Company's “The New Capitalism” series. 

Woodruff notes that Ammon, with only about 16,500 people, has surpassed large cities in quality of connectivity and choice of Internet access providers. Woodruff quotes Bruce Patterson, Technology Director in Ammon: “If you were to ask me what the key component of Ammon is, I would say it’s a broadband infrastructure as a utility. We’ve just found a way to make it a true public infrastructure, like a road.”

Woodruff describes how the infrastructure is being integrated into the community’s larger development:

Residents of Ammon can choose to opt in to the network, which the city began building in 2011. Patterson expects that by the end of 2019, 900 of the town’s 4,500 residences will have joined the network. The city is growing, adding new residential addresses at a rate of about one per day, and Patterson says that every single developer is choosing to include the fiber infrastructure in new construction.

When asked what makes Ammon’s network better than other options available in communities such as New York and San Francisco, Patterson offered four factors:

PUBLIC UTILITY: The city of Ammon manages the network the same way it handles water services or road maintenance. “If we could simply come to a point as a nation where we would say internet infrastructure is essential and we’re going to make sure that everybody has access to it,” Patterson says, “that would be a huge step forward.”

Ammon, Idaho’s open access software defined network has earned accolades from industry experts and been hailed as a model approach for other communities. It has been praised for serving the community, providing reliability, and offering affordable options. Amid news of expansion, the positive effects of competition via the publicly owned network have recently flashed across news and social media. People who don’t live in the Idaho city are shocked to learn how affordable high-quality Internet access can be. 

Growing a Good Thing

In March, City of Ammon Fiber Optics began to deploy in the city’s Bridgewater neighborhood, where they expected to connect around 300 of the potential 500 subscriber households with this particular expansion. Three more neighborhoods are lined up for expansion this summer and into the fall.

The city provides several options for residents in Ammon, including the Local Improvement District (LID) approach, to finance expansions of the infrastructure. Their method allows the community to continue to build the network without borrowing or bonding. Community members within the boundaries of the project area can sign up at the beginning of the process to pay for connecting over a 20-year period. If they decide to pass initially and connect later, they must pay the connection fee out of pocket. In 2018, the city of Ammon developed this explainer video:

If people want to pay the full connection fee all at once, they have the option to do so, but many people choose to pay through the LID. Connecting to the networks usually costs between $3,000 - $3,500. Groups of neighbors come together to create the LIDs because deploying in an area where there are multiple homes interested in connecting to the network is less expensive than a single home connection. The more property owners who opt in to connect to City of Ammon Fiber Optics, the lower the cost is to every one who wants to connect.

Keeping it Clear

Idaho Falls residents in select areas are now able to tap into fast, affordable, reliable connectivity through their city’s fiber optic network. Idaho Falls Fiber (IFF) and Idaho Falls Power (IFP) recently announced that premises in three residential areas of the city can now sign-up to connect to the open access Fiber-to-the-Home (FTTH) network. 

Check out the IFF Fiber Service Areas Map.

With A Little Help From UTOPIA

Idaho Falls has operated Circa, a municipally owned dark fiber network for around eight years. The infrastructure has been managed by IFP to offer connectivity to local businesses and municipal facilities, but a few years ago, community leaders began investigating ways to use the resource for residential purposes.

After working with two separate consulting firms and reviewing options and recommendations, city leaders decided to move forward. Located across the Snake River from Ammon, Idaho Falls may have been inspired by the accolades Ammon has collected in developing their open access software defined network. With significant infrastructure in place via the Circa Network, a residential pilot program is a logical step toward improving connectivity for the entire community.

Idaho Falls leadership began collaborating with folks from UTOPIA Fiber, who they hired to design and manage the pilot. As in places such as Owensboro, Kentucky and Anacortes, Washington, the city chose to pursue the pilot to examine how FTTH might be received by residents, what technical issues might arise, and to help spread the word that high-quality Internet access would be available from the municipal utility.

In the U.S., Thanksgiving is one of the busiest travel times of the year. Families and friends come together to catch up, to eat tons of food, and to appreciate their good fortune. It's a time to count our blessings and laugh at a few of the characters common to every family. This year, we've imagined some of those characters at Thanksgiving Dinner in the world of telecom...

Momma Greenlight

by Lisa

Thanksgiving would be just another TV dinner without someone willing to wake up at 4 a.m. to put the bird in the oven, prep the potatoes, and bake the pie. Just like Mom, Greenlight in Wilson, North Carolina, has gone above and beyond for the community. In addition to  providing an important economic development tool and creating an innovative program for folks who might struggle a little with Internet access bills, Wilson connected their neighbor Pinetops. In much the same vein, we know that if the next door neighbor was alone on Thanksgiving, Mom would invite them over for turkey and pumpkin pie.

Uncle Comcast

by Jess

He’s that uncle you don’t want to get stuck next to at the dinner table. Uncle Comcast will spend the entire time talking up his newest business venture while he ignores your aunt’s repeated request to pass the mashed potatoes. When you finally get a chance to talk he suddenly has to leave the table to take a call from one of his many lawyers. You’re a little worried he’s working on scheme to swindle grandma out of house and home in order to monopolize the inheritance. 

Cool Aunt Ammon

by Katie

Idaho Innovation Awards recently recognized industry leader Ammon Fiber Optics as the state’s Consumer Product of the Year. The publicly owned open access fiber network beat out companies that make expandable shoes for kids and solar power generators to win the award.

This year’s Idaho Innovation Awards event was organized by law firm Stoel Rives in cooperation with the Idaho Technology Council and Trailhead. According to the event website, it “recognizes innovations, innovative professionals and companies throughout the state” that contribute to Idaho’s economy. The other finalists for the prize were Expandals from GroFive and Kodiak from Inergy.

Belle of the Broadband Ball

Ammon, Idaho, is no stranger to accolades. In 2016, the city’s fiber network received the Community Broadband Project of the Year award from the National Association of Telecommunications Officers and Advisors (NATOA). Many others, including a former FCC Chairman, have applauded Ammon’s innovative open access model and funding approach.

Skies have been brightening for the Utah Telecommunications Open Infrastructure Agency Network (UTOPIA). The trend is continuing for the network that has seen rough times in the past, testament to their fortitude, creativity, and ability to turn lemons into lemonade.

Finishing Layton

Most recently, UTOPIA announced that they had reached an agreement with the town of Layton, Utah, to finish deploying fiber infrastructure to residents and businesses. UTOPIA plans to have deployment in Layton, where approximately half of the city currently has access to the infrastructure, completed within 24 months.

According to Jesse Harris at Free UTOPIA!, expert at all things UTOPIA, this build out varies from deployment in the earlier days of construction in a few ways:

For starters, UIA [Utah Infrastructure Authority] can now issue bonds on its own authority. This means cities no longer have to use their bonding capacity to back them. The Layton plan also has the city backing the bonds using city franchise fees. If the subscriber numbers fall below what is required to pay the bond (which, to date, has not happened in a single UIA expansion area), the city pledges to cover the difference. On the flip side, if revenues exceed the bond payments (which has happened in most UIA expansion areas), the city gets to keep a cut of that for whatever they want. This could include paying off the original UTOPIA bonds, funding other city services, or anything else, really. It’s important to note that this revenue split option is only available to cities who assumed the original debt service.

Harris speculates that, due to the housing boom in the region, UTOPIA may face a difficult time recruiting the people they need to build the network. There are also almost two dozen potential UTOPIA communities engaged in feasibility studies. All these factors, in addition to the possibility of access to materials, may impact the ability for the network to expand at the rate they’d consider ideal.

10 Gigs for Residents

In January, we reported that UTOPIA announced a financial milestone — for the first time, revenue covered bond payments and also allowed a 2 percent dividend for most member communities.