Update: HB 5670 was removed from the agenda prior to the committee hearing.

Representative Michele Hoitenga from Michigan is at it again. Last year as Chair of the House Communications and Technology Committee, she attempted to pass a bill to discourage her state’s self-reliant municipalities from improving local connectivity. Deja vu as her committee’s agenda for tomorrow, December 6th, picks up HB 5670, a bill sponsored by a different lawmakers and deceivingly titled the “Broadband Investment Act.”

View the language of the bill.

Money is Good, Who Gets it Matters

The bill, sponsored by Mary Whiteford (R - Laketown Township) establishes a fund that will provide grants for broadband infrastructure deployment; the fund will be created by the state treasury. The bill doesn’t specify a dollar amount, which likely would vary from year to year. Recognizing that the state needs to make a financial investment in rural Internet infrastructure deployment is certainly a step forward, but the details in HB 5670 will end up doing more harm than good for people living beyond urban centers.

Municipalities and other government entities are specifically denied eligibility for grants. Not only does the restriction prevent local communities the ability to offer Internet access to the general public, but without an equal opportunity at state funding for infrastructure, municipalities and counties can’t pursue a public-private model. In short, by locking out local governments from state funding, the bill is harming both local citizens and the local ISPs that tend to offer services via publicly owned infrastructure.

10/1 Isn’t Broadband!

Michigan’s State Legislators are considering a bill that uses the term “broadband” to describe minimum service as 10 Megabits per second (Mbps) download and 1 Mbps upload. The FCC increased the standard to 25 Mbps/3 Mbps back in 2015 and it remains today. HB 5670 will siphon money from the state treasury to Frontier, AT&T, and any other telco that refuses to invest in anything better than DSL in rural Michigan. Fail. Needs improvement.

Holland, Michigan, has now officially transitioned from construction into operation of their downtown fiber optic network.

After a spring decision to expand the range of the initial pilot project, community leaders began contemplating the possibility of offering Internet access directly to the public. Local residents and businesses had long remained unsatisfied with the options they had from incumbents AT&T and Comcast. Entrepreneurs and business owners took to pressuring elected officials into making more use of the community’s existing fiber to improve connectivity.

Holland Board of Public Works (BPW), which had deployed the fiber in the 1990s, used its fiber infrastructure for electric utility purposes and had already been offering wholesale services to a limited number of local businesses. They’ve taken a slow and steady approach toward their pilot and expansion efforts in order to investigate all the options as they move forward.

As in the case of pilots in Westfield, Massachusetts, or Owensboro, Kentucky, the success of the pilot in Holland will help determine whether or not the BPW will extend the network to more residents and businesses. According to the Holland Sentinel, BPW had connected 96 downtown subscribers to the network as of September 13th. The new connections will generate approximately $135,720 in annual revenue and BPW is still taking subscribers at their website.

Subscribers can sign up for symmetrical gigabit access for $85 per month or enhanced gigabit connections for $220 per month. The latter offers additional features that businesses are most likely to need, such as static IP addresses, service level agreements, and priority restoration.

Helping Out Neighbors, Too

If you’re looking to move to a community with a relaxing, rural lifestyle and quality Internet access, then Lyndon Township in Michigan may have just jumped to the top of your list. Now that the community has chosen an ISP to serve the community via its publicly owned infrastructure and established the cost of service, they're eager to start deployment.

Lyndon Township Board recently approved rates for their forthcoming fiber network, setting the price of symmetrical 1 Gigabit per second (Gbps) Internet speeds at a reasonable $69.95 per month. This is a nice reward for the township’s residents, who last year approved a tax increase to fund the construction of the network. The affordable residential gig brings Lyndon Township into the same price range as communities such as Lafayette, Louisiana; Westfield, Massachusetts; and Longmont, Colorado.

Local Support Founds, and Funds, the Network

Though only a 20-minute drive from the University of Michigan, a world class research institution, Lyndon Township residents are mostly stuck with expensive, slow, and unreliable satellite Internet service. Around 80 percent of the community doesn’t currently have access to broadband, which the FCC defines as a minimum of 25 Megabits per second (Mbps) download speed and 3 Mbps upload speed.

When attempts to get existing Internet service providers to expand into the community failed, the township decided to build its own Fiber-to-the-Home (FTTH) network. To fund the approximately $7 million network, residents approved a millage increase in 2017, with 66 percent of voters in support. The millage amounts to a property tax increase of $2.91 per $1,000 of taxable property.

Just outside of Detroit, Michigan, Grosse Pointe communities and institutions are considering whether to work with local Internet service provider Rocket Fiber to build an institutional network (I-Net).

The Grosse Pointe suburbs, or “the Pointes”, are composed of five independent municipalities situated along a strip of land northeast of the city, jutting slightly into Lake St. Clair. Their network, tentatively called the Grosse Pointe Area Educational Telecommunications Network (GP EdNet), would connect schools, libraries, and municipal buildings with 10 Gigabit per second (Gbps) speeds.

If the cities and institutions all approve the arrangement, they would form a consortium, consisting of the City of Grosse Pointe, Grosse Pointe Park, Grosse Pointe Farms, Grosse Pointe Woods, Harper Woods, the Grosse Pointe Public Library, and the Grosse Pointe Public School System.

Under the current plan, Rocket Fiber would build the institutional fiber network for the public partners and provide maintenance for 20 years. The consortium would own and provide voice and Internet services. During construction, the ISP would also lay down its own fiber in order to offer Internet services to nearby residents and businesses at some point in the future.

Rocket Fiber has estimated total cost for the 14-mile long GP EdNet at under $3 million. Participating communities and institutions would split the core expenses but each would be individually responsible for financing the connections from their own buildings to the main fiber ring.

Schools Leading the Way

Great Lakes Energy (GLE), Michigan’s largest electric cooperative and third largest energy utility, is constructing a Fiber-to-the-Home (FTTH) network to bring gigabit connectivity to its 125,000 members. Construction in the project’s pilot area is underway. Eligible members may be able to subscribe to services from the co-op’s subsidiary Truestream as soon as the end of the year.

Truestream Off to A Quick Start

GLE shared on its website that the co-op decided to build the Truestream network because members expressed a need for better connectivity in rural Michigan.

At the end of 2017, the co-op’s Board of Directors approved the planned fiber project. Board approval came after three feasibility studies, commissioned by GLE and its power supplier, Wolverine Power Cooperative, concluded that a broadband network would be a responsible investment for the co-op. Bill Scott, President and CEO of GLE, wrote in Michigan Country Lines that this conclusion was “based in part on GLE’s very positive satisfaction rating… [and] on surveys done by GLE and Wolverine that show a high demand for high-speed, reasonably priced, Internet service.”

GLE began constructing the first portion of the Truestream network earlier this year. For the initial pilot, the co-op is focusing on the Petoskey service district, which includes Emmet County and parts of Charlevoix and Cheboygan Counties. An online FAQ explains this region was selected because it’s representative of the varying terrain, density, level of connectivity, and type of membership found throughout GLE’s service territory. Some homes could be online by the end of 2018.

On Independence Day, Americans celebrate the ingenuity, grit, and fortitude that led us to now. We’ve chosen this day to remember the decision to establish the United States as an independent country. Like other civilizations that have come and gone, America will always have times of honor and unbecoming moments in history, but its citizens have learned self-reliance — it’s in our DNA.

In this video from Motherboard and CNet, we have the chance to see a group of citizens from several Detroit neighborhoods take charge of their own digital future through local self-reliance. The people of the Equitable Internet Initiative (EII) are taking advantage of  dark fiber in the city to provide connectivity to residents in areas of the city sorely needing Internet access and better services. The group is composed of several organizations and, in addition to deploying high-speed wireless technology to serve residents and businesses, they’re heading up programs for young people to increase adoption and provide training.

When the framers of the U.S. Constitution declared their independence, they did so based on economics, social justice, and the desire for autonomy. Diana Nucera and her group, the Detroit Community Technology Project, express a similar motivation as they declare their independence through local self-reliance.

“We risk our human rights if we don’t take ownership and control over the Internet in a way that is decentralized.” - Diana Nucera, Director, Detroit Community Technology Project

If you're inspried by this story, you can donate to the project.

Michigan rural communities where big ISPs won’t offer high-quality connectivity are tired of waiting for relief that won’t come. One at a time, they’re taking action by presenting proposals to members of the community, discussing the possibilities, and seeking the authority to move forward. The specifics of how they fund that goal are unique to each community; in Sharon Township, the town held an election on May 8th to let voters decide. After a somewhat contentious campaign, the proposal to use a special property tax assessment to fund fiber optic broadband infrastructure did not pass.

Millage Method

A few months ago, we described how voters would decide in a spring election whether or not to authorize a $4.9 general obligation bond proposal for fiber optic infrastructure. The community would use the “millage” system to calculate how much local property owners would contribute toward paying back the bond. As Gary Munce from nearby Lyndon Township and Ben Fineman from the Michigan Broadband Cooperative explained in episode 272 of our podcast, a millage is calculated based on the taxable value of real property. In Sharon Township, the proposal would have added an average of about $3.2583 per $1,000 of taxable value to local property owners' tax bills. In order to help people determine how much they would owe under such a payment structure, the city hosted a “High-Speed Internet Millage Calculator” on their website.

Sharon Township planned to take the same approach as Lyndon Township, where a similar proposal passed last summer with 66 percent of voters approving the millage and 34 percent voting no. In Sharon Township, the numbers were similar but the result was reversed with only 319 voters approving the millage and 587 voting no.

Misinformation About Munis

Traverse City Light & Power (TCLP) recently took the next step in their efforts to build out a citywide Fiber-to-the-Premise (FTTP) network. City leaders issued a Request for Information (RFI) for Partnership for Deployment; responses are due June 29th.

Read the full RFI.

All the Possibilities

TCLP has had their own fiber network in place for about a decade. The city uses it to offer free Wi-Fi in the downtown area and leases excess capacity to anchor institutions, such as local hospitals and the school district. Like many other municipalities with similar infrastructure, TLCP invested in the network as a way to enhance electric services and provide communications between substations.

About a year ago, the community utility board decided unanimously to move forward with plans to adjust their capital improvement plan in order to fund fiber optic connectivity throughout the city. Their decision came after considerable deliberation on whether or not to expand their existing infrastructure and if the city should fill the role of Internet service provider (ISP).

They’ve had past conversations with local ISPs and a cooperative that is in the process of installing fiber within its service area. TCLP has also discussed various models, such as open access, retail services, and public-private partnerships. The community is taking time to do their homework and consider which approach is best for their unique situation.

Picking A Partner

A feasibility study completed last year recommended either operating a citywide network as a city utility or leasing it to a single partner. Last May, TCLP board members decided to seek out a partner rather than pursue the municipal utility option. The current RFI seeks a network operator to design, build, operate, and maintain what TCLP describes as the first phase of the project.

TCLP wants a relationship that:

1. Balances financial risk