In June, Indiana’s Hendricks Power Cooperative and Endeavor Communications Cooperative announced that they will be partnering to expand fiber optic connectivity in west central Indiana. Endeavor will provide gigabit Internet and voice services over Hendricks's fiber optic network, bringing broadband to more than 5,000 households within the next four years.

Members Want It

According to the June press release, growth in Hendricks, Putnam, and Montgomery Counties have left businesses and residences in need of high-quality connectivity. The region is outside the Indianapolis metro and growing. Because it has been historically rural, large corporate Internet access companies have not made the same investments they’ve made in urban areas.

From the Hendricks Power press release:

“Our members and community leaders greatly expressed the need for access to high-speed Internet,” said Greg Ternet, CEO of Hendricks Power Cooperative. “Combining the resources of these two cooperative-based businesses will allow us to bring fiber-based technological services in a quicker and more efficient fashion. Joint investments by Hendricks Power and Endeavor Communications will help our community grow in terms of quality of life and economic development.”

Endeavor has been serving rural Indiana communities for around 65 years and began deploying fiber in 2006; they completed fiber deployment in 2016 in nine service exchange areas. With several awards under their belt at the state and national level, and ample experience at communications in rural environments, they seem a natural fit for another rural cooperative, such as Hendricks Power.

Hendricks began like many other electric cooperatives in the 1930s — with rural members working together to get power to their homes and farms. The co-op was formed in 1936 when the local utility, which was owned by private interests, would not expand out where population was sparse. Hendricks Power Cooperative now serves more than 30,000 members.

Getting A Gig

The South Bay Cities Council of Governments (SBCCOG), a group of 16 cities, has joined with Los Angeles County and will work with American Dark Fiber to develop a fiber optic network throughout the region.

Unclogging the Streets, Now and Tomorrow

The public-private partnership aims to develop infrastructure to improve local connectivity, but another key goal is real-time transportation and traffic control. With better traffic synchronization that involves all the participating communities, traveling from one town to the next can be seamless. The SBCCOG is also considering a future that will include autonomous vehicles and seeking the connectivity needed to manage driverless cars.

In addition to applications that directly impact traffic on the road, the SBCCOG is considering ways to reduce the number of car trips. They want to invest in a fiber network to enable applications such as smart city halls — allowing folks to access municipal services from home — telemedicine, distance education, and telecommuting. By reducing the need for people to travel with their vehicles, the sixteen communities that belong in the SBCCOG also aim to reduce pollution.

Partnership

The consultant hired by SBCCOG in 2016 to develop a Master Plan recommended that the organization pursue a public-private partnership. American Dark Fiber (ADF) will build the network, the city recently announced [PDF]. SBCCOG received $4.4 million in funding from the Los Angeles County Metropolitan Transportation Authority and $1.2 million from the State of California to build the fiber ring. The network is the foundation for the region's master plan, which they also developed with consulting firm Magellan Advisors.

Approximately 100 miles of fiber will connect all city halls, at least two data centers, and approximately fifty other buildings identified as “critical” by the SBCCOG. The network will belong to ADF, but Jory Wolf, Vice President of Digital Innovation at Magellan Advisors, says that communities that belong to SBCCOG will be able to opt out at various intervals of the contract.

The lakes and forests of Aitkin County in northern Minnesota make it an ideal location for a vacation home, but poor connectivity has historically limited days spent at the cabin to weekends and holidays. However, a new partnership between Mille Lacs Energy Cooperative (MLEC) and Consolidated Telecommunications Company (CTC) is making it possible for families to extend their trips up north by connecting lakeside cabins with high-speed Internet access.

The two co-ops are working together to build a Fiber-to-the-Home (FTTH) network, XStream Fiber, that will bring fast, reliable broadband access to homes and businesses in MLEC's service territory. MLEC hopes that the improved connectivity will benefit the local economy by encouraging seasonal residents, who make up more than 40 percent of the cooperative's membership, to stay in the region for longer.

Partnership Lands State Grant

According to Stacy Cluff, Technology and Energy Services Manager at MLEC, the electric cooperative had been exploring its options for offering high-speed broadband access for a decade. But it wasn’t until 2016 when MLEC began working with CTC, which had previously partnered with Arrowhead Electric Cooperative on a broadband project, that the XStream Fiber network became a reality.

CTC’s role in the partnership is to provide network connectivity, Internet backhaul, and backend support while MLEC manages billing, marketing, and other subscriber services. The cooperatives coordinate technical support calls, with MLEC handling basic issues itself and pushing higher level problems to CTC. The electric co-op owns all of the fiber infrastructure within its service territory.

In an April press release, SiFi Networks announced that they will be developing a privately funded open access Fiber-to-the-Home (FTTH) network in Fullerton, California. The project will serve the city of approximately 140,000 people, with ISPs using the SiFi fiber network  to compete for subscribers. 

Getting Commitments 

SiFi approached Fullerton in 2013 after the city’s bid to bring Google Fiber to town didn’t succeed. City leaders were interested in the prospect of bringing a FTTH network to the community as an economic development tool and, after bringing the proposal to the city council, decided they wanted to work with SiFi. The project aligned with several aspects of the community’s Fullerton Plan, a revitalization and economic development master plan.

As part of the discussions, SiFi informed Fullerton that they would wait to begin construction until after 25-year Right-of-Way (ROW) permits were granted and the company had obtained lease agreements from ISPs who wanted to offer Internet access via the network. As part of the arrangement, SiFi planned to pass every premise, regardless of what type, by the end of 2021. In January 2014, the Fullerton City Council authorized the City Manager to enter into a Negotiation Agreement (NA) with SiFi Networks. Since that time, both parties have been working to fulfill the necessary steps to move ahead with construction. 

Now that funding is in place, ISPs have committed, and permits are prepared, both parties are ready to begin the project.

SiFi will use a microtrenching method to install most of the conduit and will begin with what they call the “pilot phase” located in the southwest corner of the city. SiFi will take the opportunity to refine installation and delivery techniques, allowing the company to more efficiently deploy in the remaining zones around the city. Microtrenching is one of the tools SiFi uses as part of their FOCUS system of deployment.

Project Development and Funding

The fifth anniversary of the announcement of the KentuckyWired project is approaching later this year. As voters start to assess their candidates’ job performance, the unfinished and over budget middle mile public-private partnership (P3) has become an albatross that incumbents aren’t able to easily cast off. When we last discussed the project in 2017, we shared our observations and misgivings. Not much has changed, except some of our concerns have played out and the project has become troubled by new problems.

In Case You’re Just Arriving to the Party… 

The statewide, massive middle mile project officially began when Kentucky announced in late 2014 that they would build a fiber optic network in order to bring better connectivity to rural areas. They planned to find a private sector partner and sought bids. In the fall of 2015, Australian firm Macquarie won the contract for what soon became an even larger endeavor — a fiber optic network that would enter every county in the state at a minimum of one location. The network would consist of approximately 3,200 miles of fiber and connect about 1,000 public facilities. At the time the project was developed, the state estimated that deployment would cost approximately $300 million.

With early bipartisan support, the state allocated $30 million from their budget, which they expected to combine with $23.5 million in federal grants. When the Kentucky Economic Development Finance Authority issued $232 million in tax-exempt revenue bonds and $58 million in taxable revenue bonds to complete financing, Bond Buyer named the issue the “Deal of the Year” for 2015. Macquarie’s timeline estimated an optimistic one-year completion for the entire statewide project.

Local communities continue to search for ways to tackle the digital divide and in San Francisco, the city is making strides by working with a local Internet access company. The City by the Bay and ISP Monkeybrains have adopted a new model to bring high-quality connectivity to residents in public housing. The approach not only creates new opportunities for people who were once denied economic and educational opportunities, but does so in a way that is financially self-sustaining. With modest maintenance and start-up costs, Monkeybrains and San Francisco has found a way to bring the same high-speed Internet access to low-income households at an affordable rate. Read our new report, A Public Housing Digital Inclusion Blueprint: Monkeybrains and San Francisco Deliver a Sustainable Gig, to learn how the partners found a way to shrink the digital divide in public housing facilities.

Download A Public Housing Digital Inclusion Blueprint: Monkeybrains and San Francisco Deliver a Sustainable Gig [pdf], here.

A few national ISPs offer programs for households considered low-income, but those services only offer slow and typically unreliable connections. The program that Monkeybrains and San Francisco has created provides high-speed Internet access to public housing units at no cost to the end user. In some cases, the ISP does receive a monthly payment of $10 per unit from building management. No matter what, each user receives the same level of customer service and support as those who pay standard monthly rates. From the beginning, the goal was to bring the same level of service to subscribers in public housing as Monkeybrains subscribers throughout the city.

Last August, Pineland Telephone and Jefferson Energy Cooperatives in Georgia began developing a project together to bring fiber connectivity to businesses in the small towns of Louisville (pop. 2,200) and Wrens (pop. 2,000). This February, the partners finished construction and celebrated with a ribbon cutting ceremony. The event marked marked another instance in which cooperatives are working together to improve connectivity in rural areas.

The project began in Louisville last summer when the cooperatives realized they could team up to reduce costs and improve Internet access for businesses in Jefferson County. In a July 2018 press release, Pineland Telephone commented:

“Rural America lacking the broadband service needed to compete globally is on everyone’s radar, with Georgia and national legislation being considered so that improvements can be developed. Instead of waiting on funding and policies that may not come, cooperatives working together determined a way to make advancements in the communities in which they serve.”

Pineland’s Dustin Durden told the Augusta Chronicle that both cooperatives deployed fiber simultaneously. Jefferson Energy worked on construction between Bartow and the Louisville area, which were then connected to Wrens, while Pineland began with fiber within the town of Louisville and then worked within Wrens. Working together, they were able to finish the project in about 18 months.

As Durden explains in this Facebook video, Pineland, Jefferson, and the city of Louisville are using the infrastructure to make free Wi-Fi available in the community’s downtown park:

Fiber for Electric Efficiencies and Expansion

Jefferson Energy sees several uses for the new infrastructure: