Tag: "partnership"

Posted December 9, 2014 by lgonzalez

In November, Burlington's City Council approved the much anticipated settlement with Citibank. Burlington Telecom, a nearly citywide gigabit FTTH network owned by the city, was run into the ground by a previous mayor. That Mayor's Administration hid major cost overruns from the public for years, resulting in a challenging situation for the community. In the the world of municipal broadband, this is a significant anomaly.

The City found itself owing CitiBank some $33 million with no clear path on how to pay it. After years of arguing in court, the situation is largely resolved. Early in 2014, Citibank and Burlington reached a settlement [PDF] in which the the city would pay $10.5 million and a share of BT's future value in exchange for Citibank to drop its $33 million lawsuit. The obligation will include funds contributed by the city's codefendant, McNeil, Leddy & Sheahan P.C. law firm.

BT revenues, net cash flow, and the city's insurance carrier will contribute to the city's obligation, but the lion's share will be paid for with bridge financing from a local source. Trey Pecor, a Burlington business owner, has secured funding and created Blue Water LLC. The city will transfer ownership of the network to Blue Water in exchange for $6 million and will continue to lease the network from Blue Water at about $558,500 per year for a maximum period of five years. The goal is to find a partner to purchase the network. At that time, Blue Water and the city will divide any proceeds from the sale. 

As part of the agreement, the City Council and the Vermont Public Service Board (PSB) needed to approve the terms. The PSB is the state entity tasked with regulating utility rates and related financial matters in Vermont. On November 3rd, the PSB approved the transaction unanimously [PDF of the Order].

A Vermont Digger article...

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Posted December 4, 2014 by lgonzalez

On November 18th, 90% of voters at Princeton's special town meeting approved a measure to fund $1.2 million in make-ready costs bringing the community one step closer to fiber connectivity. The number voters who attended the meeting broke the previous attendance record set 15 years ago by 30%.

We introduced the central Massachusetts town of 3,300 in 2013. The community suffered from poor Internet connectivity negatively impacting its schools, real estate market, and economic development. Since then, the community voted to create a Municipal Light Plant and to appropriate funds to keep the project moving forward.

Community leaders have investigated several options and last fall entered into a relationship with the Matrix Design Group. According to the Memorandum of Understanding [PDF], Matrix will design, build, and operate the FTTH network for a period of 20 years. At the end of that time period, Princeton Broadband Municipal Light Plant has the option of renewing that relationship or purchasing the network for $1.

As their contribution, Princeton will provide rights-of-way, police details during construction, powered telecom shelters, and will pay for utility pole make-ready costs. According to an article in the Landmark:

The make ready work includes replacing approximately 80 utility poles, and moving telephone and electrical lines on 450 poles, providing housing for the electrical components needed to operate the system, and paying for police details during the make ready work.

The borrowing is expected to cost the owner of a home valued at $300,000, about $10 a month or $115 a year increase on their taxes for 12 years. Internet service plus telephone will cost $115 a month. Once a contract is negotiated with Matrix, construction on the make ready phase would start in January 2015 and the project would be completed by January 2016.

It looks like the network will offer Internet connections of 30-50 Mbps; currently options for residents vary...

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Posted December 2, 2014 by lgonzalez

Local communities in Maine are mobilizing to jumpstart economic development, expand educational opportunities, and improve Internet access. The town of Orono, located near the center of the state, announced earlier this month that it will working with nearby Old Town and the University of Maine to deploy an open access fiber network pilot project in an area they wish to promote as a technology park.

The news highlights connectivity improvements in Maine happening at the local level. In August, Rockport solidified its plans to bring fiber to its downtown with partner GWI. Soon after, South Portland announced a similar partnership with GWI to spur economic development. Sanford and Isleboro [PDF] have commissioned studies.

The Main Campus reports that Orono, Old Town, the University of Maine, and GWI have been in the planning phase for some time, but lacked funding to deploy:

“We tried to be the first on the map [with fiber-optics], but there were too many obstacles. Now we have the opportunity to do something,” said Orono Town Manager Sophie Wilson at last Monday’s Economic Development Committee meeting, where the opportunity was presented.

In early 2012, the town was in talks with Old Town and Maine broadband service provider GWI about connecting the towns and the University of Maine to the Three Ring Binder, an 1,100-mile long highway of fiber optic infrastructure that passes underneath Bennoch Road. In order to take advantage of the opportunity, the towns planned on coming together in a collaborative called Old Town-Orono Fiber (OTO Fiber) and applied for grant funding to go through with the project.

Although they weren’t able to receive the necessary funds in 2012, the town is in a better position this time around.

The Three Ring...

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Posted November 10, 2014 by lgonzalez

Several entities in northeast Illinois are hoping to improve connectivity, reduce costs, and spur economic development with a publicly owned $2.11 million fiber optic investment. 

McHenry County, the City of Woodstock, McHenry Community College (MCC), and Woodstock Community Unit School District 200 are working together to develop the McHenry County Broadband Fiber Network Consortium. The county's Emergency Telephone System Board will also will belong to the consortium. The purpose of the group will be to oversee and manage the network, reports an October 26th Northwest Herald Article.

The Woodstock City Council recently unanimously approved participation in the project and the proposed intergovernmental agreement. District 200 soon followed with unanimous approval on October 28th, and on November 6th the McHenry County Board also agreed unanimously to participate in the project. The agreement and details about the project are available in the Agenda Packet [PDF] from the November 6th County Board meeting.

Each entity expects to see significant savings as they eliminate leased lines. Woodstock's annual projected operational costs will be $33,784, reducing municipal connectivity costs by about $13,448 per year by eliminating leased lines. Woodstock will also enjoy the ability to budget from year to year without the threat of unpredictable rate increases from current provider Comcast. City Manager Roscoe Stelford told the Northwest Herald:

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Posted October 15, 2014 by tanderson

There was some good news at the end of August in Georgia, just in time for the new school year: a fiber optic network spanning 3,600 miles and potentially tying together up to 330 schools with 10 gigabit connections was announced. Dubbed the “Education Exchange,” the network is the product of an agreement between the rural cooperative North Georgia Network (NGN), private cable provider ETC Communications, and a private fiber optic ISP and infrastructure company called Parker Fibernet. Each of these three carriers’ existing fiber optic assets will provide a piece of the network, and all are connected to each other and to the broader internet in Atlanta.

While formed through a partnership of cooperative and private providers, the network will be governed by the schools themselves, which are spread throughout 30 different counties and reach across the northern third of the state, from the western border with Alabama to the eastern border with South Carolina. Both public and private schools will be able to connect. 

The new network should allow schools to realize some significant cost savings from replacing phone lines with VOIP and dropping slower leased data connections. More interesting, however, are the educational and administrative applications of such fast direct connections: video conferencing for teachers and administrators between and within school districts; accessing bandwidth-intensive online educational materials; expanding access to wi-fi devices throughout schools; and pooling purchasing power of many districts to get discounts and expanded digital course content.

How each district and each school use the network will be up to them, but the possibilities are considerable. Some of the early schools that beta tested the network have already experimented by hosting real time virtual music collaborations between schools. Paul Belk, NGN’s CEO, described the motivations driving his cooperative to establish the network: 

“The strength of our communities, our economy, and workforce all starts in our schools...as a community-owned company, it’s our job to give back and use our resources to better the next generation.”

NGN has been connecting business parks,...

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Posted September 24, 2014 by tanderson

Lexington, Kentucky, the second biggest city in the state with the second slowest broadband speeds in the nation, has announced plans to issue a request for information for a gigabit network within the next six months. The idea is to gauge interest from private providers in forming a public private partnership and get at least a rough estimate of the costs and benefits of a city-wide fiber optic network. 

The Lexington area currently has average download speeds of 16.2 Mbps, which puts it 38th among cities in Kentucky alone. While many in Lexington have been unhappy with slow speeds, poor reliability, and high prices provided by the incumbent Time Warner for years, the local government appeared divided last spring over the potential Comcast-Time Warner merger. Some felt, inexplicably, that service would improve after the second most hated company in America was acquired by the most hated. But others realized the need for competition, and during the course of renegotiating Time Warner’s expiring cable franchise over the last year, city staff have been meeting with private providers to determine how to improve access. 

Mayor Jim Gray said he would like Lexington to become a gigabit city, though he stopped short of endorsing a fully public network along the lines of EPB in Chattanooga:   

"We're going to be looking for partners who can create competition and who are willing to serve neighborhoods throughout Lexington," Gray said. "Increasing our Internet speed is crucial, but so is tackling the digital divide."

Whether or not private providers will answer the mayor’s call with a deal that works for both the city and their bottom line remains to be seen, but Gray does at least seem to grasp the need for competition to break up the local monopoly. Step 1 is admitting you have a problem - the next...

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Posted September 16, 2014 by lgonzalez

Last year we reported on a deal between Google Fiber and North Kansas City. The provider entered into a long-term lease to use LiNKCity dark fiber to incorporate into its area deployment. The City recently announced it will now enter into a public-private partnership with DataShack to bring fiber to local businesses and residents. Residents will receive free high-speed access. From the City's announcement:

The partnership between these two companies will enable residents to experience Gigabit speeds for FREE. On January 1st, 2015 all existing residential customers will be upgraded to free monthly 100 mb internet service. New customers after January 1st will have the opportunity to choose between three service options; free monthly gigabit internet service with a $300 installation fee, free monthly 100 mb internet service with a $100 installation fee, or free 50 mb internet service with a $50 installation fee.

A Kansas City Biz Journal article reports that North Kansas City will retain ownership of the infrastructure and DataShack will bring free gigabit Internet service to the public library, city churches, and all public schools. Profits and losses will be shared equally but the City's losses are capped at $150,000, including the capital investment. DataShack will operate and maintain the network.

"It's a win-win for the city," said Byron McDaniel, the city's communications utility director. "It's really giving back to the community what they've invested into the network."

According to the Kansas City Star, the network has a lot of business customers, which is the core of DataShack's strategy:

Today, liNKCity has about 460 business customers in North Kansas City who pay anywhere from $80 to $500 a month for high-speed connections. DataShack plans to keep business rates the same while cranking up speeds.

About 440 residential customers currently buy hookups from liNKCity. Brown said he expects the free service to make that number double or triple.

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Posted September 9, 2014 by christopher

By building a fiber line to allow some local businesses to get next-generation Internet access, Rockport became the first municipal fiber network in the state of Maine. Town Manager Richard Bates joins us for episode 115 of the Community Broadband Bits podcast.

We discuss the financing behind the network and their partnership with local Internet Service Provider, GWI, to improve access to the Internet.

Bates also explains how they had to ask voters for authorization to use a tax-increment financing approach to paying for the network to spur economic development. Nearby communities have been watching to see what happens.Read our story about this network here.

Read the transcript from our conversation here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 15 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to The Bomb Busters for the music, licensed using Creative Commons. The song is "Good To Be Alone."

Posted August 22, 2014 by tanderson

Rockport, a coastal town of just 3,300, became a statewide leader last month by launching Maine’s first municipal broadband network. Offering symmetrical gigabit speeds to businesses and residents, Rockport’s network is a carrier-neutral dark fiber system, with local private provider GWI offering retail services. 

The reach of the network is limited, as it consists of only 1.2 miles of fiber. While only about 70 homes and businesses currently have the option to purchase a connection, GWI offers symmetrical gigabit per second internet access for just $69 per month and the city has left the option open to expand the network in the future.

As noted in a Bloomberg View article on the network, it massively outpaces the only broadband competitor in Rockport, Time Warner Cable. Time Warner also offers a $70 service package, but its download speeds are 20 times slower and its upload speeds 200 times slower.  

The network was the product of a partnership between the town board, GWI, the University of Maine system, and Maine Media Workshops + College. Maine Media is a nonprofit college with 1,500 students learning photography, videography, and other digital media skills, and has a large economic footprint in such a small town.

Students’ coursework requires the storing and sharing of massive files, something that was previously difficult or impossible to accomplish given limited network capacity. Town officials are hoping that the new network will not only allow students to learn more easily, but enable them and others to establish small businesses in town.    

U.S. Senator Angus King, a vocal champion of broadband access, was among the officials on hand last week for the official unveiling ceremony. Speaking to the need for greater internet access, Senator King stated:

“In my opinion it’s exactly like water, it’s exactly like electricity, it is a public utility that is necessary in order for our economy and our country to flourish…We want to work where we live, rather than live where we work."

The total cost of the project is estimated at $60,000, half of which came from the University of Maine’s Networkmaine...

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