It was more than two years ago when voters in Vinton, Iowa, resoundingly gave their blessing to the city to form a telecommunications utility. After study and consideration, the municipality is now ready to move from design to deployment.

In mid-December, a Notice to Bidders went out from the Vinton Municipal Electric Utility (VMEU) and the engineering firm working with the community to develop a publicly owned Fiber-to-the-Premise (FTTP) network. According to the notice, Vinton plans to build the network “in its entirety” over the next year.

According to the media release, the city plans an underground deployment and anticipates the network will include approximately 82 miles of fiber. The Media Release indicates that several RFPs will be forthcoming throughout 2019.

Read the Notice to Bidders Media Release here.

It’s Feasible

In the fall of 2015, after Vinton voters decided 792 to 104 to put VMEU in control of the broadband initiative, it took until early 2017 for the city to hire a firm to develop a feasibility study. Many people in the community of about 5,100 people were tired of poor Internet access via slow DSL. Cable Internet access is available in some areas of town, but both residents and businesses feel that without high-quality connectivity, Vinton will lose out to other Iowa towns  that already have created municipal networks.

Cedar Falls and Waverly are both within an hour's drive north of Vinton. Other communities in Iowa have invested in fiber networks to improve economic development, including Spencer, Lenox, and Harlan.

When considering Iowa, what comes to mind? Open fields? Livestock? High-quality Internet access? According to the FCC, if you live in Iowa, your broadband problems are over. Of course, as ILSR Research Associate Katie Kienbaum points out in her recent piece in the Des Moines Register, the reality in the Hawkeye State is quite different than the FCC’s flawed stats report. The reason is the FCC’s infatuation with satellite Internet access — a view that has some real consequences for Iowa and its people. Read the piece in its entirety here or at the Des Moines Register:

FCC says satellite connectivity is good enough for rural Iowans. It’s not.

Everyone in Iowa has access to broadband, according to the federal government. In fact, two-thirds of Iowans can supposedly subscribe to at least three different broadband providers.

Surprised?

You should be. The hundreds of thousands of rural Iowans who struggle to get good connectivity are.

The sizable disconnect between federal statistics and reality is a result of the Federal Communications Commission (FCC) classifying satellite Internet access as high-speed broadband. Since every census block in Iowa has access to satellite connectivity, everyone is officially considered served.

However, by accepting satellite Internet access as “good enough,” the federal government is dooming rural Iowans to second-rate connectivity, effectively shutting them out of the modern economy.

Anyone stuck with Internet access from a satellite provider will tell you that it’s not true broadband. Speeds are much slower than cable or fiber, and high latency, or signal transmission time, makes it practically impossible to use for video or phone calls. On rainy days, you might not get service at all. This poor quality isn’t even reflected in the price. Satellite providers often charge more than other types of Internet access providers, while forcing subscribers to decipher complicated data plans and sign on to long contracts.

Looking at the Community Network Map, anyone can see that Iowa is filled with towns that have chosen to invest in publicly owned Internet infrastructure. On May 1st, the community of Pella took a step at the polls that will bring them a little closer to having a "pin" on our map. Ninety-two percent of those voting in the special election chose to authorize the City Council to establish a telecommunications utility.

Approval to Move Ahead

The election results don't establish a timeline for construction or operation of a fiber network or authorize any funding, simply allow city leaders to take the initial steps at forming the utility in the future. The city already operates its own municipal electric utility, so they have the same advantage of many other rural Iowa communities that go on to deploy fiber networks. At a March 12 City Council meeting, elected official unanimously approved the resolution to hold the election. From the minutes of the meeting:

The need for a municipal telecommunications utility is being driven by concerns expressed by citizens and businesses regarding access to highspeed Internet. Furthermore, a municipal telecommunications utility could help meet the long-term high-speed internet access needs of our citizens and businesses.

It is also important to note that many rural communities across Iowa have either formed municipal telecommunications utilities, or are in the process of forming the utility. The reasons these communities have authorized the formation of a municipal telecommunications utility are similar to the reasons the City of Pella is considering this issue. 

Iowa communities have invested in local municipal networks for decades. Across their state map sits rural communities where local residents and businesses can connect to high-quality Internet access that rivals urban centers. On March 20th - 22nd, two separate events in Iowa will celebrate local efforts to improve broadband.

Community Broadband Summit 2018

On March 20th at the Des Moines Holiday Inn and Suites:

The Community Broadband Summit brings together community leaders and activists from across the Midwest who want better broadband for their communities.

At the Summit, you'll learn how to advance community broadband from concept to reality and hear from people who've actually built and operated community networks. From referendum campaigns to feasibility to implementation, the Summit will help your efforts locally to take control of your community's technological future. 

There is no fee to attend the Summit and you can register online. 

Some of the topics to be explored include:

• Organizing a Citizen Campaign
• Steps Toward Municipal Broadband
• Basics of Fiber Networks
• Financing
• Partnerships

You can view the full agenda here.

Six local Iowa communities, Belmond, Charles City, New Hampton, Maquoketa, Vinton, and Adair are considering or working toward municipal networks and are coming together for the event. Learn more about efforts in the communities and check out the resources they’ve collected to share at the Summit website.

IAMU 2018 Broadband Conference

The 8th Annual Iowa Association of Municipal Utilities 2018 Broadband Conference falls on the heels of the Summit and will also be located at the Des Moines Holiday Inn. The event starts with breakfast at 7:30 a.m. on Wednesday, March 21st and includes several tracks that primarily address leadership issues for telecommunications utilities. Christopher will be speaking at the conference, which he always describes as one of his favorite annual events.

To be fair, "not feasible" could also mean that you are asking the wrong questions. Nothing rules out that the problem lies with both the consultant AND the questions. It's hard to tell from the outside which of these factors dominates.

An Incomplete Path

For years, Iowa's Decorah has been considering a municipal fiber network and local folks have been educating people on the possibilities. With so many other communities in Iowa moving forward successfully with projects, one would have thought Decorah might snag one of the consultants involved in those. It went instead with Uptown Services.

We generally don't name consultants unless we feel compelled to on this site but Uptown Services was also the consultant the last time I saw such a poor feasibility that I couldn't avoid writing about it - in Hillsboro, Oregon. They were also the consultant for Provo, Utah; Alameda, California; Salisbury, North Carolina; and other networks that have encountered significant challenges in their business plans. We don't know what role, if any, the consultants played in their struggles and, to be fair, Uptown Services has contracted with networks that have avoided any serious pitfalls.

I have no way of evaluating the many services they provide, but I can say that cities looking for feasibility analysis and early guidance in how to improve Internet access in a community should carefully consider their track record.

What upsets me is not that Uptown told Hillsboro and Decorah that a bond-financed rapid-deployment of citywide FTTH was too risky in their analysis. That may or may not be correct - and I deeply respect consultants that are willing to tell clients what they do not want to hear. The problem is that a consultant's job should not be to say "yeah" or "nay" for one particular approach but rather to guide a community along a feasible path of improving Internet access.

A recent proposal being considered by the FCC that has raised the loudest outcry has been the status of mobile broadband in rural areas. Now that Verizon is discontinuing rural subscriber accounts, the FCC will be able to see those concerns come to life.

Dear John...

The company has decided to cut service to scores of customers in 13 states because those subscribers have used so many roaming charges, Verizon says it isn’t profitable for the company. Service will end for affected subscribers after October 17th.

Verizon claims customers who use data while roaming via other providers’ networks create roaming costs that are higher than what the customers pay for services. In rural communities, often mobile wireless is the best (albeit poor) or only option for Internet access, so subscribers use their phones to go online.

Subscribers are from rural areas in Alaska, Idaho, Indiana, Iowa, Kentucky, Maine, Michigan, Missouri, Montana, North Carolina, Oklahoma, Utah, and Wisconsin.

In a letter sent to customers scheduled to be cut off, Verizon offered no option, such as paying more for more data or switching to a higher cost plan. Many of the people affected were enrolled in unlimited data plans:

“During a recent review of customer accounts, we discovered you are using a significant amount of data while roaming off the Verizon Wireless network. While we appreciate you choosing Verizon, after October 17th, 2017, we will no longer offer service for the numbers listed above since your primary place of use is outside the Verizon service area.”

Affecting Customers And Local Carriers

Apparently, Verizon’s LTE in Rural America (LRA) program, which creates partnerships with 21 other carriers, is the culprit. The agreements it has with the other carriers through the program allows Verizon subscribers to use those networks when they use roaming data, but Verizon must pay the carriers’ fees. Verizon has confirmed that they will disconnect 8,500 rural customers who already have little options for connectivity.

Philip Dampier at Stop The Cap! writes:

Indianola Municipal Utilities (IMU) in Iowa finalized its business plan for citywide Fiber-to-the-Home (FTTH) service earlier this month. The decision marks a shift in how residents receive services in the community; IMU will take over from current partner Mahaska Communications Group (MCG) and expand to offer triple-play citywide.

Up To Now

Indianola created its municipally owned broadband utility back in 1997 and invested in fiber-optic backbone infrastructure a year later. They used the investment to backhaul fixed wireless service beginning in 2002 and by 2006 had developed a partnership with MCG. Expanding fiber to residents didn’t start until 2010 and two years later, MCG began offering triple-play services within certain areas of the city. Last year, the community commissioned a feasibility study to examine the possibility of using existing fiber resources to all premises in Indianola.

Under the current agreement between IMU and MCG, wholesale rates for residential connections are $30 per month and $100 per month for commercial connections. The feasibility study determined that the current rates “did not support expansion” to the entire Indianola community.

Trustees Say OK

Under the business plan approved by the Trustees at the May 8th meeting, IMU will step into MCG’s shoes and will buy out MCG’s existing 596 customers. IMU will be the FTTH retail services provider, offering triple-play of Internet access, VoIP, and IPTV. The network will work with Cedar Falls Utilities (CFU) on video services, connecting at the Des Moines regional data facility in order to reach them. IMU will have the opportunity to tap into about 7,350 potential residents and businesses in addition to MCG’s current customers.

The plan for expansion divides the city into 26 service areas but subscribers need to sign up early in order for the utility to connect their home. People who participate in early sign up will all have services activated at the same time. IMU has proposed rates for different services including:

Coon Rapids, Iowa, recently began its upgrade project, replacing its cable network with Fiber-to-the-Home (FTTH). Coon Rapids Municipal Utilities (CRMU) hopes to have the citywide project completed by late summer 2018.

Experience From The Eighties

CRMU started offering cable TV to the community in 1982. At first, the system only offered about 35 channels. In 1996, community leaders began considering the possibility of offering Internet access and formed a task force to address the idea. After talking with residents and researching other communities’ approaches, the task force recommended Coon Rapids move forward with establishing a communications system.

In 1996, 87 percent of votes cast in a referendum were in favor of investing in a municipally owned cable communications system and a similar percentage voted to have CRMU be in control of the system. By the end of August, just a few weeks after the vote, CRMU was offering dial-up Internet access.

The utility constructed a fiber-coaxial system in 1998 and within a year CRMU was providing telephone, Internet access, and cable TV services via the community network.

Coon Rapids is home to about 1,300 people and is located about an hour west of Des Moines.

Charles City is looking to join the ranks of Iowa municipalities that offer fast, affordable, reliable connectivity via publicly owned fiber. The town of approximately 7,600 people released a Request for Proposals (RFP) for a Fiber-to-the-Premise Feasibility Study earlier this month. Responses are due May 5th.

In 2005, Charles City voters approved a referendum that gave the city the authority to establish a telecommunications utility. They’ve already taken steps to pursue an Internet network infrastructure project, but incumbents Mediacom and CenturyLink have made marginal improvements in local services whenever the city appeared to move beyond a the feasibility study phase. So far, the city has held off from making their own investment.

In 2014, they joined with ten other Iowa communities to study the possibility of a regional effort, which later became known as the Iowa Fiber Alliance (IFA). The positive outcome of that study encouraged Charles City to continue on and, after funding a local preliminary study, they decided to commission a full feasibility study.

In this RFP, Charles City states that its intention is to offer retail services, but the study should also include information about other business models like open access and public-private partnerships. They are looking for several proposed financing options, including General Obligation (GO) bonds and revenue bonds.

Iowa Fiber Alliance

The regional effort in which Charles City is participating may or may not come to fruition, so the community needs its consultant of choice to consider three different possibilities. From the RFP:

SCENARIO 1: IFA builds a fiber transport network of which Charles City has ownership rights. The City shares a proportional share of network construction and operations. The IFA aggregates Internet bandwidth among members and provides at least two diverse connections to peering points. For video and telephone service architecture, Charles City receives services from other IFA members. 


Last April, the small town of Waverly in central Iowa connected its first customers to test the new, citywide, Fiber-to-the Home (FTTH) network. After years of sub-par service from incumbent providers, the residents wanted something better. After securing funding, the municipal Waverly Utilities set to work on the Connect Waverly network. Services officially became available for everyone in July 2016.

Today, Connect Waverly stretches to all 10,000 homes and businesses in the town and provides high-speed Internet service of up to 1 Gigabit per second (1,000 Mbps) symmetrical to more than 1,200 residential and commercial customers. The Courier's Cedar Valley Business Monthly reports that Waverly's high take rate is double their six-month goal.

Jennifer Bloker, Waverly Utilities’ Director of Marketing and Public Information, told the Courier’s Cedar Valley Business Monthly, “We’re investing back into our community. We care about Waverly as a whole.”

Collaboration with Cedar Falls

Waverly Utilities had support from another utility, the long-running municipal network in Cedar Falls, Iowa. The two towns are collaborating and will share ownership of new equipment, such as an IPTV head-end system, to serve the customers on both networks. 

Waverly Utilities’ Director of Telecom Service, Jeff Magsamen, appreciates the support. Magsamen told the Courier:

“We have a good partnership with them. They’re always there to answer questions, they’ve helped us out a lot. Drawing on CFU’s [Cedar Falls Utilities] decades of experience has benefited us greatly.” 

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