Tag: "partnership"

Posted January 21, 2011 by Mitch Shapiro

 

In late 2007 I wrote an essay [pdf] for FTTH Prism arguing that it makes increasing sense for municipalities and incumbent local exchange carriers (ILECs) to cooperate in bringing open-access fiber-to-the-home (FTTH) service to America’s small towns and rural areas.

As readers of this web site well know, such a cooperative model stands in sharp contrast to the typical reality faced by poorly-served communities wanting to connect their businesses and households to a community-owned fiber network. In virtually all such cases, the ILEC, though refusing to deploy its own FTTH network--or even provide high-speed DSL service to the entire community—will fight tooth and nail to stop construction of a community-owned fiber network.

In my essay I acknowledged that ILECs had yet to show any signs of shifting from their “kill all muni-nets” attitude to one that views open-access municipal FTTH networks as a means to better compete with cable without taking on the substantial capital investment associated with a FTTH upgrade. But I added that:

“it remains to be seen whether these [anti-muni-net] attitudes will withstand the mounting competitive pressures facing ILECs in the large number of markets in which they are not planning to deploy fiber-rich, video-capable networks. In these markets, the combination of cable VoIP and triple-play bundles, wireless replacement, and low-cost web-based services will increasingly turn what were once “high-margin” copper customers into either low-margin copper customers, or negative-margin non-customers.”

Among the trends I cited as pushing ILECs to reconsider their staunch resistance to muni-nets was the fact that, in markets where they don’t deploy their own FTTH networks, they will fall farther and farther behind in terms of broadband speeds, especially as cable operators ramp up their deployment of next-generation DOCSIS 3.0 technology.

In the face of this increasingly threatening competitive trend, I suggested that ILECs seriously consider leveraging their existing customer base and expertise to become retail providers on state-of-the-art muni FTTH networks, which can deliver much faster (and more symmetrical) speeds and better service quality than cable—even after the latter deploys DOCSIS 3....

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Posted January 7, 2011 by christopher

The Port Authority of Medina County, Ohio, has successfully bonded $14.4 million to take advantage of a broadband stimulus award to build a fiber-optic network connecting community anchor institutions and businesses with better broadband.

Bethany Dentler, executive director of the Medina County Economic Development Corporation, said Dec. 17 that a bond consultant had just completed sale of the bonds at an average interest rate of 5.96 percent. Cash from the bond sale was expected to be in the hands of the Medina County Port Authority by the end of the year and a fiber lighting ceremony to kickoff the construction phase of the project is planned for March or April. Dentler said the port authority, which will own the network, plans to pay off the bonds over the next 20 years with fees charged to customers of the fiber network.

The nonprofit organization OneCommunity will build and presumably operate the network, which will be owned by the County. Being located in close enough proximity to work with OneCommunity appears to be a terrific advantage for communities who make investments in broadband infrastructure. The $1.4 million in stimulus funds aiding this project were a part of the larger award given to OneCommunity as part of their efforts to better wire 20 counties in Ohio.

Posted January 3, 2011 by christopher

Ontario County was working on a publicly owned solution to Middle Mile long before the broadband stimulus approach made it popular. And now, before most of the stimulus money has been disbursed, they have completed an expanded version of their initial plan.

To date, Axcess Ontario has signed master agreements with eight telecom and broadband companies, including Verizon Wireless and national broadband provider tw telecom. Axcess Ontario is in continual discussions with other service providers, and is working aggressively on its next goal of luring a fiber-to-the-home (FTTH) service provider to Ontario County. With the fiber ring complete, businesses and municipalities now have access to faster and less expensive broadband, as well as bandwidth equal to global broadband leaders. Businesses can gain access to the ring simply by contacting any of the eight service providers that work with Axcess Ontario. Residents do not yet have access to faster and less expensive broadband, but they will once a FTTH service provider is secured. Axcess Ontario has been working to lure a FTTH provider for more than a year, including submitting an application on behalf of Ontario County, NY, to Google's "Fiber for Communities" ultrafast broadband project earlier this year. More than 1,100 communities nationwide responded to that project, and Google just announced last week that it was postponing its selection of winning communities to early 2011.

We will be interested to see if they can lure a FTTH provider -- though middle mile can lower the operating costs of providing such a service, the capital costs are not significantly changed. And with the robust middle mile already connecting community anchor institutions, a new FTTH provider cannot count on those high-revenue customers. We have seen this previously in Alberta, Canada. Axcess Ontario is an example of a good public-private partnership - as noted in Telecompetitor:

Axcess Ontario credits much of its $2 million cost savings to a lease agreement with Ontario Telephone Co., an incumbent local carrier.

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Posted April 15, 2010 by christopher

The Baller Herbst Law Group filed an extensive report with the FCC detailing important information about OneCommunity - a fascinating nonprofit organization connecting many communities with fiber and wireless connectivity in Ohio. OneCommunity works with a variety of public and private sector partners to expand access to last mile and middle mile connectivity. Because they fall within our broad definition of putting public needs first, I wanted to highlight this report.

OneCommunity’s roots go back to 2001. At the time, Case Western Reserve University (Case) had a robust fiber-optic communications system and considerable networking expertise, but the rest of Cleveland lacked advanced communications capability. Case’s president, Edward Hundert, and its chief information officer, Lev Gonick, believed that broadband connections to the Internet promised to be a major factor in the local economy’s long-term health; that broadband could transform Northern Ohio from a manufacturing-based to an information-based economy; and that Case could play a profoundly beneficial role in enhancing Cleveland’s broadband future. As a result, Hundert and Gonick reached out to several of Cleveland’s leading government, educational, cultural, philanthropic, and other non-profit organizations and persuaded them to join Case in founding a new entity called “OneCleveland” that would provide gigabit connectivity to participating organizations and pave the way for widespread and free wireless service.

OneCleveland expanded far outside the City and changed its name to OneCommunity. It has already tallied an impressive list of achievements:

In the Northern Ohio region, OneCommunity facilitated public and private arrangements for the deployment of a gigabit-capacity fiber-optic community network, soon spanning 22 counties and now serving over 200 subscriber entities and 1,500 schools, hospitals, clinics, government, and public safety locations. Over one million citizens are affected by the organizations that OneCommunity serves through the network.

The network is open and carrier neutral, but so much more. Read the paper -- and appendixes -- for more information. PS : I should note that I disagree with the conclusion:

OneCommunity is not attached to any particular ownership model for broadband infrastructure, believing...

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