The people of Burlington have proven beyond a doubt that they believe in publicly owned Internet networks. They’ve fought harder than any other community we’ve seen to maintain a voice in the future of their much loved publicly owned fiber optic network, Burlington Telecom (BT). Now after months of ruminating, debating, and examining their options, the future of BT is still uncertain.

The Back Story

We’ve covered BT extensively and dived into both the numerous benefits the community has enjoyed as well as the problems caused by former Mayor Bob Kiss and his administration. Bad choices and a lack of transparency snowballed, leaving the city to contend with sizable debt. Through all the difficulties, residential and business subscribers have consistently praised their hometown publicly owned network and expressed an appreciation for accountability, good service, and BT’s local ownership.

In order to fend off a lawsuit from Citibank, the city of Burlington had to agree to find a buyer for the network. To maximize the funds the city will receive from the transaction, a sale needs to be finalized by early January.

On November 6th, the City Council was scheduled to vote on which entity would be allowed to purchase the network, but that would have been a dull ending to a story filled with drama and, as the fates would have it, that isn’t what happened. At all.

The Kiss Of Debt

The Kiss administration’s choice to hide cost overruns from the public and the City Council led to a $33 million obligation to CitiBank. In 2014, the two reached a settlement after CitiBank decided to sue in 2011 and the parties had haggled in court for three years. As part of the settlement, the community committed to selling BT. In order to obtain the largest share possible of the proceeds from the sale - 50 percent - Burlington must reach an agreement with a buyer by January 2nd, 2018. The longer it takes to find a buyer, the less of the net proceeds the city will retain.

This is the transcript for Episode 277 of the Community Broadband Bits podcast. Luis Reyes from Kit Carson Electric Cooperative joins the show to explain how electric cooperatives are solving the digital divide in rural America. Listen to this episode here.

Luis Reyes: People trust co-ops. They trust Electric co-ops. They've been - been around since the mid 30s. I think there was a lot of faith that we could pull this off and make it as reliable as we made the electric system.

Lisa Gonzalez: You're listening to episode 277 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Rural New Mexico has some of the most scenic landscape in the U.S. It also presents some of the most difficult challenges in getting its widely dispersed population connected with high quality connectivity. The Kit Carson Electric Cooperative it's changing the situation in the north central area of the state. For several years now they've been connecting people in the region with fiber to the home improving connectivity for residents, businesses, and local entities. This week we hear more about the project from Luis Reyes CEO of Kit Carson who gives us a history of the project and how high quality Internet access is benefiting the region. Now, here's Christopher and Luis.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell from the Institute for Local Self-Reliance up in Minneapolis, Minnesota. Today I'm speaking with Luis Reyes the CEO of Kit Carson Electric Cooperative. Welcome to the show, Luis.

Luis Reyes: Thanks Chris. I'm happy to talk to you.

Christopher Mitchell: Well I'm excited to talk to you as well. We've we've been covering a lot of the electric cooperatives getting into fiber networks. You've been doing this longer than many. We've interviewed a few others but I think this is incredibly important for rural America. Maybe start by telling us a little bit about Kit Carson. Where are you located and what's the geography around your area?

On September 22nd, Fillmore County and local telecommunications cooperative representatives participated in a groundbreaking event to mark the start of building a Fiber-to-the-Home (FTTH) network in the rural town of Lanesboro, Minnesota.

Fiber To The Unserved

Lanesboro is located in Fillmore County about 50 minutes southeast of Rochester. The small rural town covers 1.3 square miles with a population of 755. Forty-one percent of households in Fillmore County are “unserved” as defined by both the Minnesota Office of Broadband Development and the FCC, which defines “broadband” as 25 megabits per second (Mbps) download and 3 Mbps upload. Fillmore County residents and businesses are one small group of a large segment of rural America without access to high-quality connectivity. The FCC reported in 2016 that 39 percent of rural residents don’t have access to broadband, but actual numbers are much higher because incumbent reported mapping tends to overstate the reality. 

Fortunately, rural cooperatives are picking up the slack where national incumbent ISPs are failing to deploy high-quality Internet infrastructure. Local telecommunications cooperative, AcenTek, will build the FTTH infrastructure. The network will connect 431 unserved households, 42 unserved businesses, and one community anchor institution (CAI) in the rural Lanesboro area, including Whalan, Carrolton Township, and Holt Township. The FTTH project is expected to reach speeds of 1 gigabit upload and download.

Funding FTTH

With the best intentions, Kentucky announced in late 2014 that it would build out a statewide open access fiber optic network to at least one location in each county to encourage high-quality connectivity in both urban and rural communities. Hopes were high as rural residents and businesses that depended on DSL and dial-up envisioned connectivity to finally bring them into the 21st century. After almost three years and multiple issues that have negatively impacted the project, legislators and everyday folks are starting to wonder what's in store for the KentuckyWired project. 

Local Communities Are Best Suited To Deploy Community Networks

There is no one-size-fits-all method of deploying across a state filled with communities and landscapes as diverse as Kentucky. From the urban centers like Louisville and Lexington to the rocky, mountainous terrain in the southeastern Appalachian communities, demographics and geography vary widely. But most lack modern Internet access and local ISPs have found it hard to get affordable backhaul to connect to the rest of the Internet.

There are several municipal networks in Kentucky, some of which have operated for decades. In addition to Glasgow, Paducah, Bowling Green, Frankfort, and others, Owensboro is currently expanding a pilot project that proved popular. As our own Christopher Mitchell discussed at the Appalachia Connectivity Summit, several cooperatives have made major fiber-optic investments in the state.

When it comes to connecting residents and local businesses, we strongly believe local entities are the best choice. Local officials have a better sense of rights-of-way, the challenges of pole attachments, and the many other moving pieces that go into network investment. Projects with local support see fewer barriers - people are more willing to grant easements, for instance. 

Next week’s Border to Border Broadband Conference from the Blandin Foundation promises to be a great opportunity to meet like-minded people with an eye on infrastructure. This year, the event is titled “Bridging the Gaps - Expanding the Impact” and will take place at Madden’s on Gull Lake. If you haven’t already made your plans, now is an excellent time to plan on heading up north to enjoy some fall weather, Minnesota style. 

The folks at Blandin shared more information about the event and we want to pass it on to you:

Minnesota is hosting its annual Border to Border Broadband Conference October 25-26 in beautiful Brainerd Minnesota on Gull Lake.  Come learn about Minnesota's broadband innovative broadband infrastructure grant program that has had a significant impact on broadband deployment in some of the most rural places in Minnesota. 

Blandin Foundation will present new research demonstrating the impact of investment in broadband infrastructure and adoption on five rural Minnesota communities where world-class broadband is meeting smart economic development strategies.

Providers and communities will host eight interactive learning stations showcasing successful rural projects funded through Minnesota’s Border-to-Border grant program.

Pre-conference sessions will include a Broadband 101 Workshop and a Digital Inclusion Showcase:

Laura Withers, Director of Communications, NTCA – The Rural Broadband Association; Roberto Gallardo, Assistant Director, Purdue Center for Regional Development; and Aaron Brown, Iron Range storyteller, blogger (http://minnesotabrown.com/)  and broadband advocate; are among the conference’s featured speakers.

Learn more at the conference website.

The Blandin Foundation will be holding its Border to Border Broadband Conference this October at Madden’s on Gull Lake. This year, the title of the event is “Bridging the Gaps - Expanding the Impact.”

Up North In The Fall

The folks at Blandin looked around the state to find rural communities where local decisions are having a positive effect by improving connectivity. The event will be October 25th - 26th and will include presenters from local government, cooperatives, and the private sector:

• Rural Alvarado, BEAMCO & Wikstrom Telephone
• Westbrook & Woodstock Telephone Company
• Rock County Broadband Alliance
• Renville County – RSFiber & HBC
• Palmer Wireless – Big Lake Industrial Park
• Mille Lacs Energy Cooperative & CTC
• Fayal & Harris Townships - Mediacom

If you attend the conference, you’ll start the event by choosing between the Broadband 101 or Digital Inclusion preconference sessions. Later, there will be presentations on public-private partnerships, real life benefits to better rural connectivity, and methods for grassroots outreach.

Attendees can also experience the popular Broadband Learning Stations, described as:

…[F]eature stories of partnerships and perseverance that define the Border-to-Border Broadband Development Grant Program participants. All sessions highlight what it takes for community success -- the partnerships, the strong community spirit and perseverance, the long-haul financial commitment, and the positive economic and social impact these investments have and will have on local businesses, households, and community institutions. Come for the community camaraderie and advice; leave better informed and inspired as you seek to reach your own community broadband goals.

Eyes On Minnesota

Last year, Madison’s CIO Paul Kronberger spoke with Christopher about the city’s pilot project to bring better connectivity to several lower-income areas. They also discussed the community’s separate plan to deploy dark fiber infrastructure across the city. The city recently released its Request for Proposals as they seek a partner for deployment for a Fiber-to-the-Premise (FTTP) network. Final proposals are due October 20th.

The RFP comes about a year after the community finished a feasibility study to examine costs, interest, and business models for a city-wide municipal network.

Publicly Owned With Help From A Partner

Madison has a specific business model in mind. They are looking for a partner willing to emulate Huntsville’s approach, in which the city designs, builds, and owns a dark fiber network. A private sector partner constructs fiber drop cables from the public rights-of-way to the subscribers’ premises. The partner handles lit services responsibilities and the city takes care of all dark fiber concerns. Madison also wants its partner to take on the task of obtaining access to necessary private easements. The community is looking for a firm that is willing to establish a long-term relationship.

The city has determined that the project will consist of 114,680 residential passings, which includes both single-family and multi-family dwellings. The number of business passings has been calculated to 10,331. All community anchor institutions (CAIs) will also be connected.

The Vision For Madison

Approximately 247,000 people live in the state's capital city, having seen an increase of 8.6 percent since 2010. Madison is considered a town with an exceptional quality of life, in part because the city has established a set of Racial Equity & Justice (RESJ) goals. Their desire to invest in the infrastructure to bring equitable service to all of the community is an extension of those goals.

For the past year, six municipalities along with local colleges and universities have collaborated to lay the groundwork for fiber optic infrastructure in the greater Asheville area. The group, West Next Generation Network (WestNGN), is now ready to find a partner to begin hammering out details in order to realize the concept. They’ve released the WestNGN Broadband Request for Negation (RFN) and responses are due September 21st.

The plan closely resembles the North Carolina Next Generation Network (NCNGN) in the Research Triangle area of Raleigh, Durham, and Chapel Hill. WestNGN will include the communities of Asheville, Biltmore Forest, Fletcher, Hendersonville, Laurel Park, and Waynesville - all of which belong to the Land of Sky Regional Council. The Council has helped with administration and in drafting the RFN aimed at improving local connectivity and boosting regional economic development.

Strategic Alliance Partnership

WestNGN’s RFN states that they want to establish a Strategic Alliance Partnership with a single ISP or a group of ISPs that possess an interest in both providing service and in deployment. WestNGN puts negotiation of ownership of assets and use of those assets at the top of the list for discussion points, signaling that rhey aren't set on a fixed approach. Similarly, they hope to negotiate matters such as management, operation, and maintenance of local networks; ways to speed up deployment and reduce costs; and ways to better serve low-income residents.

Goals For The Network

WestNGN plans to bring gigabit connectivity to residents, businesses, and community anchor institutions in the region. They specifically state their priority for this level of capacity, but note that their future partner will have time to gradually implement it, if necessary. They also stress the need for symmetrical service speeds. Several employers in the region have determined that upload speeds - from their offices and for their employees at home - are increasingly desirable. The consortium has recognized that home-based businesses in the region are also multiplying every year.