Tag: "partnership"

Posted December 12, 2012 by lgonzalez

Back in 2010, we reported on SuperNet in Alberta, Canada. We noted how, even though it resulted in significant middle-mile infrastructure expansion, there were still many, many Canadians along the route that were not connected. We drew a parallel between that experience and the focus on middle mile infrastructure via the broadband stimulus programs.

In October, Broadband Communities Magazine carried Craig Settles' article on Olds, a small community in Alberta that overcame the last-mile challenge by working for over 10 years to create that last-mile connection, culminating in O-Net. This town is an inspiration for other communities who decide to take matters into their own hands and find a way to get members connected and engaged. 

Settles tells how the process began as a collaborative effort to get organized and revitalize the economy. A technology committee was charged with bringing fiber throughout the county, but the expense was prohibitive. From the article:

"The initial estimate to lay fiber optic cable throughout the county was approximately $80 million [Canadian dollars], well beyond OICRD's [Olds Institute for Community and Regional Development] funding ceiling,” states Joe Gustafson, who was OICRD chairman at that time. “The Tech Committee subsequently refocused on just the town of Olds and its population of just over 8,000, which brought the estimate down to $13.5 million, or about $3,140 per premises passed.”

The story goes on, taking us through several stops and starts the community experienced when working with private providers:

“To date, few incumbents see value in working with a community on a network such as this,” states Craig Dobson, currently the director of Olds Fibre Ltd. (OFL) and initially a consultant for the institute. “In essence, they believe strongly in facilities-based competition and appear to be threatened by market- based services competition that open- access networks enable.” Open-access networks rely on service providers for revenue – without them, the networks are not sustainable.

After working with the private...

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Posted November 9, 2012 by lgonzalez

We have covered developments in the town of Indianola, Iowa, where the community decided to build their own network in 1998. The original purpose for investment was to use the network to enhance public safety and increase efficiency with SCADA applications. In 2005, however, the network began offering telecommunications services to local businesses. As of October, Indianola Municipal Utilities (IMU) began offering fiber-to-the-home to residents as it gradually begins expanding the use of its fiber asset.

You can now hear firsthand about the network, its history, and how the municipal utility navigated the journey to its next-generation open access network. Craig Settles interviewed Todd Kielkopf, General Manager of IMU, in an August Gigabit Nation podcast. The two discuss IMU's evolution since 1998. They also talked about the unique advantages that exist when a community considering network infrastructure investment already has a municipal utility in place.

Kielkopf tells how the driving factor for the fiber installation was to allow easier management and communication between utilities. When a 1990 franchise agreement with MediaCom was about to expire, the city investigated options. Hopes were that that the city could build a fiber network and MediaCom would offer services over that network, but that vision was never embraced by MediaCom.

Iowa law allowed the city to hold a referendum asking residents for permission to provide telecommunications services through the municipal utility's network. The referendum passed and they created a five year financial plan. Financing was with taxable and tax exempt bonds. The electric utility would build and own the network and a new telecommunications utility would license to a private partner that would offer retail services. Now, IMU and Mahaska Communication Group (MCG) have an agreement whereby MCG provides retail services over the network. While the agreement is not exclusive, no other providers currently use the network.

Kielkopf discusses three distinct phases in the development of the network's current status. First the network connected schools, libraries, government entities, and other anchor...

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Posted October 16, 2012 by christopher

Sandy has run a wireless network for over eight years and has just announced a partnership with i3 to bring FTTH to everyone using i3's technology to run trunk fiber lines through existing waste water and storm water pipes. We previously wrote about Sandy here.

Joe Knapp, the IT Director for the city of Sandy and the General Manager of SandyNet, is our guest on this week's Community Broadband Bits podcast - episode 17. He discusses how Sandy began offering broadband access to itself, residents, and businesses and how they expanded to fiber originally. And toward the end, he gives us the low-down on how the partnership with i3 is structured.

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 30 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!

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

Read the transcript of this episode here.

Find more episodes in our podcast index.

Thanks to Fit and the Conniptions for the music, licensed using Creative Commons.

Posted August 13, 2012 by lgonzalez

We told you earlier this year about Indianola, Iowa's network, filling the gap for businesses where private providers had failed. At that time, the network only served local businesses and community anchor institutions, but plans to provide fiber-to-the-home in their community of 15,000 are now unfolding. The town passed a referendum back in 1998 to build a fiber ring which was used first by the local Indianola Municipal Utilities (IMU) for SCADA and for public safety. The goal was to expand incrementally. It later partnered with Mahaska Communications Group (MCG), located in Oskaloosa, Iowa, about 50 miles west of Indianola. 

According to the IMU website, residential retail services will be available from MCG after October 1, 2012. 

Monthly rates will include triple play at $99.95, double play packages between $49.95 and $94.95, and 25 Mbps symmetrical Internet at $39.95. Residents can upgrade to 50 Mbps for $5 extra or 100 Mbps for an additional $10.00. Home Wi-fi is only and additional $5.95 per month. For complete details, check out their rate sheet PDF.

The network also leases fiber that connects community anchor institutions to the Iowa Communications Network, which provides video to K-12 schools, higher education, hospitals, state and federal government, National Guard armories, and libraries. The network also connects to BroadNet Connect, which is the network used by Iowa Health Systems for telemedicine in rural Iowa.

Posted July 19, 2012 by lgonzalez

Quite some time ago, we let you know about the plans and funding for the Medina County Fiber Network (MFCN). The network, owned by the Medina County Port Authority (MCPA) began construction in March, 2011, and is nearing completion. Jennifer Pignolet, reported in the Medina GazetteOnline, that the network just signed on their first customer, Highland Schools.

Apparently, the schools contract with its current provider, Time Warner Cable, is about to expire. While connecting Highland Schools now may be ahead of schedule, the county fiber committee can accommodate their needs. As an added bonus, the new relationship is more economical for the schools. From the article:

“Their situation needing to be addressed immediately certainly moved them to the front of the line,” [said Jim Gerspacher, chairman of the county’s fiber committee].

While the $14 million network is still months away from full completion, Gerspacher said there is enough infrastructure in place to get Highland online.

The school will have full Internet and phone service and will have all its buildings connected to one network.

Highland Technology Director Roger Saffle said the district will save close to $90,000 a year by switching from Time Warner to the Medina County network.

“It will maintain the access we already have with a cheaper cost,” Saffle said.

Highland Schools is moving from a $100,000 per year Time Warner Cable contract (or about $8,333 per month). The schools now will pay $1,500 each month to the MCPA and, according to Saffle, will be able to apply for federal grant funding to recover 40% of that monthly fee.

In 2008, OneCommunity and the MCPA began a partnership to plan and build the network. OneCommunity received a $44 million broadband stimulus grant in 2010 to extend fiber to 22 Ohio counties. MCPA received $1.6 million of that stimulus for their County network. The remainder of the $13.8 million project was covered by 20-year revenue development bonds issued by the MCPA.

OneCommunity will manage operations when the project is...

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Posted June 28, 2012 by lgonzalez

Arlington County, Virginia is taking advantage of a series of planned projects to create their own fiber optic network, ConnectArlington. The County is moving into phase II of its three part plan to improve connectivity with a publicly owned fiber network.

Some creative thinking and inter-agency collaboration seem to be the keys to success in Arlington. Both the County and the Arlington Public Schools will own the new asset. Additionally, the network will improve the County Public Safety network. Back in March, Tanya Roscola reported on the planing and benefits of the ConnectArlington in Government Technology.

Arlington County's cable franchise agreement with Comcast is up for renewal in 2013. As part of that agreement, the schools and county facilities have been connected to each other at no cost to the County. Even though there are still active negotiations, the ConnectArlington website notes that the outcome is uncertain. The County does not know if the new agreement will include the same arrangement. Local leaders are not waiting to find out, citing need in the community and recent opportunities that reduce installation costs. 

Other communities, from Palo Alto in California to Martin County in Florida, have found Comcast pushing unreasonable prices for services in franchise negotiations. Smart communities have invested in their own networks rather than continue depending on Comcast.

Like schools all around the country, Arlington increasingly relies on high-capacity networks for day-to-day functions both in and out of the classroom. Digital textbooks, tablets, and online testing enhance the educational adventure, but require more and more bandwidth and connectivity. From the article:

Through ConnectArlington, Arlington Public Schools will be able to take advantage of Internet2 for distance learning. At no cost, students will be able to communicate with teachers and access electronic textbooks and online courses from wireless hot spots.

The...

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Posted May 30, 2012 by christopher

In a surprise move, HBC has announced it will end management of FiberNet Monticello, though the actual time frame has not been announced. FiberNet Monticello is a FTTH network approximately 45 miles northwest of Minneapolis. HBC has been operating the publicly owned network, offering triple play services, since inception.

FiberNet Monticello has had a particularly rough road since citizens overwhelmingly voted to build it to create a locally owned alternative to cableco Charter and incumbent telco TDS. TDS landed the first blow against the network with a frivolous lawsuit. Though the courts tossed it out, the proceedings took a year and slightly added to the interest rate Monticello had to pay on its debt.

Since then, TDS invested in its own FTTH connections and Charter engaged in a vicious bout of predatory pricing in their attempt to drive competition out of Monticello.

Throughout it all, the City and HBC worked together to deliver the best broadband and customer service in the area. However, the network has not met its revenue targets (largely due to time lost from the lawsuit) and that has led to discussions about how to ensure the network would become financially self-sufficient as rapidly as possible.

HBC's performance in Monticello has actually been impressive given the anti-competitive tactics of Charter and TDS. If you want to know why we have no cable or broadband competition in America, look no further than the refusal of state and federal agencies to investigate predatory pricing tactics used to deny subscribers to FiberNet Monticello.

Regardless, elected officials in Monticello were not happy with the status quo (covering FiberNet shortfalls from the liquor store fund) and new management will offer an opportunity to chart a new course. Though HBC has decided to withdraw, FiberNet Monticello retains most of its staff and may even be better motivated to meet this challenge. From the City's press release (also below in full):

The City of Monticello would like to express appreciation to HBC for the key role they played in successfully developing and delivering high quality and reliable video, voice and internet service to the community. The HBC legacy in Monticello includes the development of a well-trained FiberNet Monticello staff and the establishment of a strong and loyal customer base, which...

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Posted April 5, 2012 by christopher

Siloam Springs, sporting 15,000 people in the northwestern corner of Arkansas, could be the next community to build its own community fiber network. But first they have to pass a referendum in May in the face of stiff opposition from Cox Cable, which would prefer not to face real competition.

For over 100 years, the city has provided its own electricity via its electrical department. Now, it wants to join the more than 150 other communities that have done so. After last year's changes to Arkansas law, Siloam Springs has the authority to move forward if it so chooses.

Pamela Hill at the City Wire has covered the situation with a series of stories, starting with an explanation of why they are moving forward:

David Cameron, city administrator, said the proposal is not so much about dissatisfaction with current providers as it is about finding new revenue for the city. Cameron said revenue from electric services has been a key source of funding for various projects and necessities for the city. That “enterprise” fund is getting smaller, Cameron said, and an alternative funding source is needed.

“We have done a good job managing accounts, building a reserve,” Cameron said. “We want to keep building on the programs we have. It takes money and funds to do that.”

City officials discussed the issue for the last 18 months and decided to put it to a referendum. Voters will decide the issue May 22.

That is a fairly unique reason. Most communities want to build these networks to encourage economic development and other indirect benefits to the community. Given the challenge of building and operating networks, few set a primary goal of boosting city revenue.

Map of Siloam Springs

If approved by voters, the city plans to spend $8.3 million to install 100 miles of fiber optic cable directly to homes and businesses. The city should be able to repay the debt in 12 years, if things go according to a feasibility study presented to the city’s board of directors in January. Cameron said projections show the system could begin making a profit...

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Posted February 22, 2012 by christopher

The latest addition to our Community Broadband Network Map is Indianola, Iowa. The Indianola Municipal Utilities own a network that a private partner, MCG, presently uses to offer services to commercial companies. Come summer, the network will begin serving residents also.

Indianola is the county seat of Warren County and has a population pushing 15,000. Back in 1998, the city had a referendum before building a fiber ring. The utility first used its telecommunications capacity for SCADA applications and public safety communications but began using spare capacity to benefit local businesses after 2005.

Indianola describes its network as open access but the network only has one provider. Nonetheless, it serves 70 commercial customers and is presently expanding. It is not available on citywide basis yet and further rollout will be on an incremental basis over many years.

In the open access arragement, service providers have to come to an agreement with the utility on pricing and adequate levels of customer support.

The utility entered the broadband space because incumbent providers Qwest (now CenturyLink) and Mediacom were not meeting local business needs, a familiar story we hear from communities around the country.

Contrary to the common claims of big cable and DSL companies, the city was still willing to work with its telecom competitors -- but it was Mediacom that said it was uninterested in using utility ducts created when parts of town were transitioned from aerial utility service to buried.

In reaction to the competition, Mediacom dropped its business pricing for customers that agreed to long-term contract offerings. IMU (and partner MCG) once had a considerable advantage in pricing but Mediacom's new packages have eroded some of that difference. Fortunately, IMU has a better reputation for service and does not require long term contracts.

Indianola, Iowa

One of the biggest benefits to the community is the high-capacity connections at schools, libraries, and public buildings. Schools connect to each other at a gigabit, allowing them to centralize network operations and cut costs. The municipal and county governments gain the same benefits.

Todd Kielkopf, IMU General...

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Posted December 14, 2011 by christopher

One month after the Johnson City Power Board (Tennessee) approved a fiber-optic network, they have issued a request for qualifications to identify potential partners that would provide broadband services over the publicly owned fiber-optic backbone.

Johnson City lies between Chattanooga and Bristol (Virginia), two communities with advanced next-generation networks that have created significant economic development.

According to a feasibility study by the utility, the third-party vendor approach would give the JCPB the best return on investment, balancing low risk with possible profits. The Power Board would provide the “backbone,” while the vendor, working under JCPB’s brand, would provide the “last mile” services and equipment to the commercial customers. The utility’s telecommunications division would be self-sustaining, and have absolutely no effect on electric rates.

This seems similar to the approach of Lafayette, Louisiana almost 10 years ago. Lafayette eventually decided to build out the network to residents and all businesses when the ISPs using its network were not able to use the backbone to expand to serve everyone (the economics of building last mile fiber-to-the-home connections rarely coincide with private sector goals of maximizing short term returns).

Judging from their projections, Johnson City does not need to hit particularly ambitious targets:

To reach its revenue and return on investment projections, the JCPB would need to capture about 20 percent of the area’s total market for data services, about 15 percent of the market in phone services, and about 5 percent of private data services over five years, based on a market of 3,000 commercial users.

However, even those modest goals will be difficult unless they find a good, trusted partner. Most public power utilities have the trust of residents or businesses -- that trust may not extend to whoever they work with.

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