A public fight over fiber meant the public knew more about fiber. Durel said the cable and telecom incumbents “were their own worst enemy. The more controversy they made out of this, the more they educated people.” The local newspaper covered the legal battle fairly, Durel said, and most people understood what they’d get from the new network by the time it launched.

Incumbents step up. After the network started being built, incumbents have kept rate increases low, while donating more to the local community. “I can tell you: some of the providers here are doing more for the community than they have ever ever done for this community: not a little bit, but millions of dollars, for our university, for various nonprofits and things like that,” Durel said.

This wouldn't be the first time that Seattle had decided that the city could step in and provide what private industry was failing at.

Since its approval in 1997, Tacoma’s hybrid fiber coaxial network has, among other things, ushered in a cable television service, offered customers three high-speed retail Internet service providers, enhanced Tacoma Power’s electrical system and created a communications network among government institutions. In turn, the network and its programs have drastically reduced market rates for cable TV and Internet subscribers; saved local governments about $700,000 in annual expenses; and created several promising projects, such as “smart meters” that can gauge utility consumption electronically and “pay as you go” account options for electricity customers, she said.

I have Comcast in Tacoma and all I know is since there is competition down here Comcast is about half the cost as it is in Seattle. They give you a rate good for a year. When your year is up you call up and just say Click! and bam back down you go. A friend in Seattle once called Comcast with both of our bills with similar service and mentioned my price and they said I must live in Tacoma and they wouldn't match the price.

He said he expects the city to apply for federal stimulus money in the first part of the year to move toward that goal. In addition to improving broadband access in homes, the initiative could help Seattle City Light implement smart-grid infrastructure, and improve public safety communications.

"Mayor-elect McGinn ran on a platform of bringing fiber to every home and business in Seattle, something I've advocated for several years," Schrier commented.

Click being built actually helped what has become Qwest and Comcast: by creating a market and making it feasible for professionals who need high-speed Internet access in Tacoma to live there, Click spurred the two incumbents to improve their networks, compete, and gain new revenue. Comcast actually thanked Tacoma Power publicly years ago; not sure it would today, but it was seen as a big boost for the viability of competitive broadband.

• Communities around Rutland in Vermont are moving forward with a planned universal full fiber-to-the-home network. Interestingly, this network has been spear-headed by the Rutland Redevelopment Authority, not a local City Hall.

• Back in Tennessee, the Clarksville Fiber Network is running ahead of schedule.

  Having reached the 6,000-customer mark, CDE Lightband's broadband service is slightly ahead of schedule in adding new subscribers, an official of the Clarksville utility said Wednesday — good news for a telecommunications division, which is still in its infancy. Initial projections had the utility servicing around 8,000 broadband subscribers by next June. ... New installations usually have about a six-week wait, primarily because of high demand, Batts said.

  Though demand is high, the goal of profitability is still a ways off — around 4,000 additional customers are needed to push the utility's telecommunications into the black, according to early department projections.

• Seattle's new mayor campaigned on building a publicly owned, full fiber-to-the-home network. Reclaim the Media asks if Seattle will get its broadband 'public option.'

  As Reclaim the Media noted last summer, the main obstacles to moving forward with next-generation fiber to underserved areas in Seattle are (1) money and (2) political will. The city budget remains in slash-and-burn territory this year; next year's budget would be the earliest that the new Mayor would be able to effectively push a significant new priority. This winter, however, Schrier's office will be able to apply for federal broadband stimulus funds to build out the skeleton of a citywide fiber network (possibly in collaboration with Seattle City Light), and to provide actual door-to-door "fiber to the premises" (FTTP) service to underserved neighborhoods in the Central District and Beacon Hill. McGinn's leadership will be key in making this project happen.

A group called No Blank Check Longmont, backed with $150,000 from the Colorado Cable Telecommunications Association, spent more than $143,000 in cash and benefited from more than $46,000 in in-kind contributions in its campaign to defeat 2C.

Government is often criticized for eliminating competition, inefficiently providing private services, and removing the profit motive. However, market failures are often where governments are asked or begged to step in, and, when accomplished correctly, can provide new opportunities for private enterprise.

But is the fact that people can “only” get slow Internet connections enough to float $450 million in bonds, however financed? McGinn says that there are two separate reasons to push for universal availability. “Access to the Internet is access to the economy, access to the community, in some cases access to democracy, access to issues,” he says. But it’s also about the bottom line: “It’s an essential [piece of] infrastructure to compete in a world economy.”

There have been many concerns raised about public entities, especially those with regulatory power over competitors–such as Seattle’s cable franchise board that controls access to public rights of way and facilities–entering the broadband market. But most of those concerns imply that the market will solve the problem. However, with no requirement for building out service to all customers, or having the same level of service available, an efficient market won’t provide universal coverage.

The reason for the fight wasn’t about the right to 500 channels, about low prices, or about the city wanting a piece of the action.

• An article from the Lafayette Advertiser notes: LUS Fiber plans faster rollout. Community networks are frequently attacked by incumbent groups and private providers for failing to immediately turn a profit after launching a network (something we have addressed here). LUS Fiber wisely started slow and will now start to ramp up the number of customers as they progress further along the learning curve of running the fiber-optic network.

  

  As LUS Fiber passes the six-month mark, officials are planning to significantly increase the number of customers and areas that receive television, telephone and Internet service.

  The system launched in some areas of the city in February, and thus far, the rollout has been somewhat slower than many anticipated. Lafayette Utilities System Director Terry Huval said the process hasn't gone faster because of a desire to focus on providing high-quality customer service.

  "This is a new business," Huval said. "I intentionally held back because I wanted to make sure that every attempt we made to serve a customer was the best we could deliver. Now, we can start really accelerating."

• A commentary worth reading: American broadband infrastructure: A national embarrassment

  Several months ago, I visited the Netherlands and had the rare opportunity to be personally embarrassed by our terrible broadband infrastructure. The Dutch were literally making fun of me. The fact that our country, with its vast resources and its illustrious history -- Benjamin Franklin, Alexander Graham Bell, Thomas Edison, Steve Jobs -- has such terrible internet service should be an outright national scandal.

A couple of short interesting stories this week:

• The Chattanoogan.com published a "Declaration of Independence from Comcast", written by a "fi-oneer" or person who is testing the new publicly owned FTTH services.

  Unsurprisingly, there are some glitches this early in the process, but the fi-oneer seems pretty happy with it overall:

  The television is fantastic; we have a multitude of channels, both high def and non high def; local, 'cable,' sports, movies, etc. Contracts are still being completed with a couple of providers, so we are missing my favorite, HGTV. I have been told that it will be coming in less that two weeks.

  Although as with any new product there are occasional glitches, but we have only had a few, minor not major ones, at that. The picture might freeze for a few seconds, or pixilate for a few seconds. There are some things you need to learn about the remote control.

  Interestingly, early problems can actually help community networks. In Burlington, Vermont, early problems allowed the publicly owned network to demonstrate how good its customer service was compared to the incumbents and gained a better reputation.

• More news out of Seattle - following up on our recent story noting Reclaim the Media's push for public broadband in Seattle, Seattle radio station KUOW's program "The Conversation" had some guests discussing the existing network in Tacoma and a potential network for Seattle. Follow that link to listen in, the relevant portion runs from 14 minutes to 21 minutes (a total of 7 minutes).

• Karl Bode at DSL Reports slams a recent report by incumbent-flack group Discovery Institute that concludes government regulation of broadband is unnecessary. Bode's response is worth reading, here is an excerpt:

With the right vision backed by strong decisions, Seattle is poised to become a true national leader in connecting its residents, businesses, community organizations and public institutions with next-generation Internet access. Federal broadband stimulus funds, available for application this year, provide a remarkable opportunity for bold elected leaders to push forward our city's best plans, and make real our shared vision of affordable broadband for everyone.