After tentative plans to work with a private sector partner fell through, Fort Collins is still moving forward. The city wants the option to provide residents and businesses with gigabit connectivity as a municipal service, necessitating a ballot initiative in November to change the city charter. The ballot initiative would allow the Light and Power Utility to provide Internet services and may also ask voters to consent to use municipal bonds to fund the Internet network infrastructure project.

The city estimates the project will cost between $125 million and $140 million and will cover the entire city and its “growth management area,” which is land that is expected to be annexed in the future.

A Long And Winding Road

In 2015, voters in Fort Collins reclaimed local authority by opting out of SB 152, which discourages cities from investing in Internet infrastructure in order to offer services themselves or with private sector partners. The pro-local sentiment was so popular that 83 percent of voters supported opting out.

From there, the city pursued a partnership with Axia. However, the Canadian company pulled out of discussions with Fort Collins and a similar deal with Bloomington, Indiana. Axia’s parent company, Partners Group, was reportedly hesitant to enter the U.S. market and compete with large, incumbent providers Comcast and CenturyLink. Axia Networks USA was operating MassBroadband 123 in Massachussetts and filed for bankruptcy earlier this year, leaving the state searching for another company to manage the statewide fiber-optic network.

The city is still open to partnering with a private sector partner, but is leaning toward providing services through their existing Light and Power Utility. We've seen other deals between municipalities fall apart when they seemed like sure things, which indicates that municipalities must always take care when establishing a relationship with a potential partner.

Highlands, North Carolina, deployed a Fiber-to-the-Home (FTTH) infrastructure and fixed wireless complement to serve the community. The small rural community has been operating the municipal network in the Appalachians since late 2015, but is now considering passing the mantle to a private partner. They recently released a Request for Information (RFI) and responses are due June 9th.

High In The Appalachians

Tourism is one of the town’s staple economies, as it’s known for its natural surroundings atop the Nantahala National Forest in the mountains. While less than 1,000 people live in the town all year, summer tourists swell the population to around 20,000. There are several country clubs nearby that cater to the affluent second-home owners in Highlands and there are at least 500 homes that are valued at $1 million or more.

The FTTH network does not serve the entire community. Local leaders want the network available to the entire community, in part to keep second home owners in Highlands for extended periods of time. With better connectivity, many could work from home. The community also operates a municipal electric utility that owns 2,600 utility poles and 110 miles of line, most of it aerial. Interestingly, the Highlands Electric Utility serves over 3,000 accounts, some in the suburban Atlanta areas.

Highlands issued the RFI to search out  provider that would be interested in expanding the FTTH network and acquiring more customers for the network as a whole. They still want to own the infrastructure, but hope to attract a provider willing to lease the existing network and add to it.

Read the rest of the RFI.

Responses are due Friday, June 30th.

This is the transcript for Episode 252 of the Community Broadband Bits podcast. Westminster, Maryland, has developed a public-private partnership with Ting, and Robert Wack the city council president joins the show to discuss how the project is meeting its goals. Listen to this episode here.

Robert Wack: When he brings clients or vendors or just friends into his office, he sits them down at his desk and says, "Watch this." And he shows off his gig like it's his new, shiny, red Corvette.

Lisa Gonzalez: This is episode 252 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. When Christopher was at the Broadband Community's conference in Austin recently, he had the opportunity to check in with Robert Wack, city council president from Westminster, Maryland. Westminster is a town of about 18,000 people that decided the best way to improve local connectivity for schools, businesses, and residents was to invest in publicly-owned fiber and work with a private sector partner. In 2015, they began working with ISP Ting. Robert was the leading voice of the initiative. He gives Chris an update on how things are going in Westminster and the two talk about expectations, realities, plans, and challenges. Robert was on the show way back in 2014 for episode 100, when the project was just getting started. And we've written about Westminster for muninetworks.org as the community network has grown. Be sure to check it out. Now here's Christopher with Robert Wack, city council president from Westminster, Maryland.

Christopher Mitchell: Welcome to the Community Broadband Bits podcast live edition, coming to you live from the Broadband Community Summit with Robert Wack, the city council president from Westminster, Maryland. Welcome back to the show, Robert.

Robert Wack: Thanks, Chris. Glad to be here.

Christopher Mitchell: I'm excited to get an update, because I know that things have been going well. I've been following and I don't think we've talked about this much since maybe we did a podcast talking about the public-private partnership as you were getting it kicked off.

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:

Today in the Maine Legislature, the Committee on Energy, Utilities and Technology voted unanimously to stop LD 1516, a bill that would restrict local telecommunications authority. After Tuesday's compelling testimony, when it was time for a Wednesday vote, LD 1516’s sponsor moved the bill be shelved.

Engaging Testimony

On Tuesday, May 2nd, the Committee of Senators and Representatives met to listen to testimony on the bill. We’ve provided audio of the public hearing.

South Portland, Islesboro, the Sanford Regional Economic Growth Council, and Rockport all sent experts with knowledge about developing public projects to testify in opposition to the bill. Representatives from GWI (the ISP working with several local communities that have invested in their own Internet infrastructure), the Maine Municipal Association, and the Mayors’ Coalition also testified against LD 1516.

Communities where publicly owned fiber is already improving local connectivity provided stories of how they tried unsuccessfully to work with incumbents. Page Classon from Islesboro described how incumbent proposals could be described as, “You pay for it, we own it, we charge you what we charge everyone else.” LD 1516 requires local referendums for such investments and Classon balked at taking such a proposal to the voters.

In South Portland, the city paid for construction of its open access fiber-optic network with general fund reserves. The language in LD 1516 restricts communities to funding through revenue bonds but South Portland uses its network to offer free Wi-Fi and to improve connectivity for municipal facilities. Under LD 1516, they would not have been able to make the investment.

Rick Bates from Rockport testified that the bill would force municipalities to contend with restrictions that legacy providers will never face and how those restrictions will not solve the problem of connecting rural Maine. Bates also took the opportunity to point out that organizations such as the Taxpayer Protection Alliance relies on misinformation and incorrect data, such as their erroneous assertion that Rockport has debt for its FTTH project.

The Grapevine-Colleyville Independent School District (GCSID) will lower their telecommunications costs and improve Internet service through an agreement with the City of Colleyville to build Internet infrastructure to K-12 schools. The City of Grapevine will serve as the construction contractor for the project.

High Cost Of Incumbent Services

GCISD leased lines from AT&T for $200,000 per year in order to obtain 1 gigabit connectivity. When they needed upgrades for the school district's Wide Area Network (WAN) at the two high schools and the main Network Operations Center (NOC), prices increased. After the upgrades, GCISD’s annual costs went up to $300,000 and school officials expected prices to continue to rise. When GCSID needed to increase the capacity of their WAN and NOC circuits, estimates for the upgrade came in at $1.85 million per year.

Rather than continue to pay such high costs, GCSID has entered into an interlocal agreement with Grapevine and Colleyville to jointly construct the network. The new solution will offer them a minimum 10 gigabit capacity for lower long term costs.

GCISD Executive Director of Technology Lane Hunnicutt said:

“By partnering with the City, the district is able to save more than 50 percent on installation of the new fiber optic cables. Additionally, since the City is enabling the district to own our own fiber, we will no longer be reliant on a third-party provider for monthly service and maintenance."

Network Logistics

The $5 million network will stretch over 57 miles and is financially supported by the City of Grapevine, the City of Colleyville, and GCISD. The project will be completed within five years and the school district expects a return on its $3 million investment in three to five years. Grapevine and GCISD has dedicated Tax Incremental Financing (TIF) dollars to the project, and each party is responsible for financing infrastructure on their property. Grapevine's role as contractor reduces the cost of the project significantly.

Private sector i3 Broadband recently announced that it will begin expanding infrastructure in the Champaign and Urbana, Illinois, communities. Construction will begin no later than August 1st.

Trading Partners

Nonprofit UC2B obtained $26 million in American Recovery and Reinvestment Act (ARRA) funding to deploy its urban Fiber-to-the-Home (FTTH) project. The project offered residents high-quality Internet access for as little as $19.99 per month.

UC2B found private sector partner iTV-3 to take over operations and invest further in the network in 2014. One of the reasons UC2B chose iTV-3 was the company’s commitment to invest its own resources into expanding so others in the Urbana-Champaign community would have access. iTV-3 expanded, but slowly.

When iTV-3 decided to sell its assets to Countrywide Broadband in 2016, UC2B had the right of first refusal for fiber deployed by iTV-3, but decided not to exercise that right. Countrywide created i3, based in Peoria, to serve current and future subscribers in the region. While those watching the transaction were concerned about losing a local partner, folks the area were also optimistic because i3 has the capital for a more aggressive expansion schedule.

Aggressive Five-Year Plan

Mike Whitaker, VP of sales and business development of i3 told the News-Gazette that the upcoming expansion will serve an additional 2,500 homes. The company plans to add the same amount each year for the next five years with half in Champaign and half in Urbana.

Deciding where to expand is based on several factors, including whether or not a neighboring area already has service and the percentage of interested households. When early partner iTV-3 used pre-registration to determine where to build, they required a 50 percent sign up rate in a neighborhood prior to deployment; i3 will use a lower 35 percent threshold.