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Holland, Michigan, Will Expand Pilot To More Of Downtown

In January 2016, Holland, Michigan, made commencing fiber-optic Internet access to residential neighborhoods its number one goal for fiscal year 2017. They’re a little behind schedule, but the town is now moving forward by expanding a pilot project in order to serve a larger downtown area.

It's Really Happening

The Holland Board of Public Works (BPW) held an informational meeting on March 13th to answer questions from the community and share plans for the potential expansion. About a year ago, we reported on the results of a study commissioned by the city in which, based on a take rate of about 40 percent, 1 Gigabit per second (1,000 Mbps) connectivity would cost residents about $80 per month. Small businesses would pay approximately $85 per month and larger commercial subscriber rates would run around $220 per month. The update on the plan confirms those figures, noting that the four businesses that tested the pilot services had positive experiences. As a result, BPW feels it’s time to expand to more of downtown.

"If it goes really well we hope to be able to expand the service out as far into the community as we can," said Pete Hoffswell, broadband services manager at BPW.

The expansion is planned for construction in June and July, with service testing in August. Actual delivery would be in September, BPW estimates.

BPW will use a boring technique to place conduit and fiber below ground so there will be minimal disruption. No streets will be closed. Next, BPW will get construction bids, evaluate them, and present them to the City Council for approval.

Not An Impulse Decision

tulips.jpeg Holland has had dark fiber in place for decades for the municipal electric operations. Later BPW extended it to schools and businesses that needed high capacity data services. After years of incremental expansions, the network is now more than 150 fiber miles throughout the city.

FCC's New Privacy Rules Irk Big ISPs, Munis Mellow

Consumers should be able to expect a certain amount of privacy and recent rules adopted by the FCC are a step in the right direction. That step has also revealed some key differences between profit-driven national Internet service providers, smaller ISPs, and municipal networks. The different attitudes correspond with the different cultures, proving once again that small ISPs and munis have more than just profit in mind.

On October 27th, the FCC adopted an Order to allow ISP customers to determine how their data will be collected and used. According to the FCC, they made the decision in response to public comments about the concern for personal data protection.

The New Rules

Over the past few years, consumers have become savvy to the fact that ISPs have access to personal data and that they often sell that data to other companies for marketing purposes. Under Section 222 of Title II of the Communications Act, telecommunications carriers are bound to protect their subscribers’ private information. Because those rule are designed to change as technology changes, says the FCC and Congress, this same authority applies to private data collected by ISPs. 

The FCC decided to divide the permission of use of personal information based on type, categorizing information into “sensitive” and “non-sensitive.”

Sensitive information will require ISPs to obtain “opt-in” consent from subscribers, which will allow them to use and and share this type of information:

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  • Precise geo-location 
  • Children’s information
  • Health information 
  • Financial information
  • Social Security numbers
  • Web browsing history
  • App usage history
  • The content of communication 

Non-sensitive information would include all other information and customers would need to "opt-out" in order to prevent their ISPs from collecting such data. Examples of non-sensitive personal information include service tier information.

Pinetops Threatened by Hurricane and NC Legislature - Community Broadband Bits Podcast 226

Pinetops, a town of about 1,300 outside Wilson, North Carolina, is suffering a double calamity as Hurricane Matthew has left floods and incredible damage in its wake. Less natural but no less frustrating is the unforced error by the North Carolina Legislature in effectively prohibiting municipal broadband networks.

This week, we have a doubleheader interview with Will Aycock, the General Manager of Wilson's fiber-optic Greenlight service, and Suzanne Coker Craig, a local business owner and town council member. They talk discuss the devastation from the hurricane and the threat from the town's only broadband provider being forced to leave town by an ill-conceived state statute.

We often talk about how important modern Internet networks are, but the Pinetops reaction to this storm is a stirring reminder of how true that is. Whether it was as the hurricane approached, hit, or left town, local leadership had to continue fighting to retain Wilson's Internet service because it is that important to them.

Fortunately, Wilson has announced that it will not cut off Pinetops as expected. Instead, it will offer free service, which is not prohibited by current law. Wilson is generously giving the state six months to fix the law so Pinetops is not economically harmed by losing high quality Internet access.

This show is 28 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to mojo monkeys for the music, licensed using Creative Commons. The song is "Bodacious."

Transcript: Community Broadband Bits Episode 226

This is episode 226 of the Community Broadband Bits Podcast. Joining Christopher Mitchell are Will Aycock and Suzanne Coker Craig. They discuss the situation in Greenlight and Pinetops as well as the importance of connectivity during the recent hurricane. Listen to this episode here.

Suzanne Coker Craig: We just think it's phenomenally important to our town, to really the existence and survival of our town.

Lisa Gonzalez: This is episode 226 of the Community Broadband Bits Podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. As many of our listeners know, in February 2015, the FCC issued an order that preempted restrictive state laws in Tennessee and North Carolina. The FCC's order allowed Greenlight, the municipal network developed by Wilson's electric utility, to expand its Internet access, telephone and video services outside of Wilson County. Pinetops, a small community of about 1300 residents, was connected soon after the FCC ruling and the community, its businesses and residents, finally received the high quality connectivity they needed to step into the 21st century. This last August, the order was reversed by the 6th Circuit for the US Court of Appeals. Wilson had to stop offering service to Pinetops or risk losing the exemption to the state law. In other words, stop serving Pinetops or the state would shut them down completely. In this interview, Chris talks with Will Aycock, Greenlight's General Manager, and later, Suzanne Coker Craig, a Pinetops business owner and town commissioner. Will describes a situation in the area, especially since the onset of Hurricane Matthew, which has hit Pinetops hard, and how Wilson found a way to continue to help its neighbor. Suzanne describes what it was like before the community had high quality services from Greenlight. She also describes how important the services are for the town, and how Greenlight has gone above and beyond to help the people of Pinetops. Now, here's Will Aycock, General Manager of Greenlight, and Suzanne Coker Craig, Pinetops' Town Commissioner and local business owner.

Santa Cruz And Cruzio Call It Quits

The city of Santa Cruz seemed well on their way to a productive partnership with Cruzio as the two entities hammered out an agreement for a Fiber-to-the-Home (FTTH) citywide open access network. We recently learned that both parties have stepped back from the partnership, leaving the multimillion-dollar vision in a dark limbo.

The Plan

The $45 million infrastructure was to be owned by the city of Santa Cruz and Cruzio would operate it while also offering high-quality Internet access to the community. For the first ten years, Cruzio was to have an exclusive contract after which the network would become open access. There are approximately 62,000 people living in the community situated near Silicon Valley and this project was one of the larger public-private partnerships (P3).

In July, Cruzio announced that it would begin deploying fiber in one of the city’s downtown neighborhoods by Thanksgiving, ahead of any agreement to use city-owned fiber. The deployment will bring FTTH to approximately 1,000 homes; Cruzio’s plan is self-funded.

Now What?

There is nothing that prevents the two parties from picking up where they left off and reaching an agreement some time in the future, but they would need to rebuild trust. Sadly, they lost over a year as the two parties negotiated while residents and businesses across the city happily anticipated better Internet access.

These events remind us that P3s are fragile unions that are the apex of many interlocking pieces. Like a house of cards, when one segment falls, the entire structure can come tumbling down. As more local communities consider P3s to bring high-quality Internet access to residents, businesses, and local government, they need to stay realistic, consider the long term, and keep risk in their sights.

Dark Fiber, Free Wi-Fi, Startups in Cape Girardeau, Missouri

Missouri law has severely restricted municipal networks, but local entrepreneurs decided to create their own fast, affordable, reliable community connectivity. The City of Cape Girardeau has made new plans in its Marquette Tech District: free public Wi-Fi and a tech-hub for startups. Although the city is already home to more than 100 large employers, city officials want to also encourage small businesses and entrepreneurship. Underneath all the possibilities is publicly owned dark fiber.

The Marquette Tech District will utilize the City of Cape Girardeau’s dark fiber to connect the new tech-hub and provide free public Wi-Fi. The project hopes to bring new vitality to the Marquette Tower building, a center of the city's old economy, transforming it into a space for new technology-based companies. Local entrepreneurs have created a nonprofit to develop the project and the local Internet Service Provider (ISP) Big River Communications is on board. The city, meanwhile, owns the essential infrastructure - the fiber.

A Nonprofit Drives Development

The Southeast Missourian has followed the development of the project since its inception. From the planning process to obtaining grants, the newspaper has unraveled the complex collaborations across several institutions and levels of government.

The City of Cape Girardeau, population 40,000, has always been a regional commercial hub on the Mississippi River in southern Missouri. In the late 1920s, travelers could stay downtown at the upscale Marquette Tower hotel. More than 100 employers in the city each provide jobs to more than 100 people, including Southeast Missouri State University and several healthcare systems. Community leaders hope the new tech district will attract and retain young professionals; the university next door is an excellent resource for educating and keeping a talented tech workforce.

For Rural Pinetops, Being A Gigabit Community Means Business In North Carolina

Unless you live in a rural community, you probably assume becoming a Gigabit community is all about the miracles of speed. Speed is important, but so is Internet choice, reliable service, and respectful customer service. It’s also about being excited as you consider future economic opportunities for your rural town.

Businesses Struggling With Old Services

Before Greenlight began serving Pinetops, the best community members could get was sluggish Centurylink DSL. Suzanne Coker Craig, owner of CuriosiTees, described the situation for her business:

Suzanne used to be a subscriber to Centurylink DSL service at her Pinetops home, but years ago she just turned it off. “We weren’t using it because it used to take forever; it just wasn’t viable.” She now has Greenlight’s 40 Mbps upstream and downstream service. “It’s just so very fast,” she said.

Her business, a custom screen printing shop, uses an “on-time” inventory system, so speed and reliability is critical for last-minute or late orders:

“We work with a Charlotte company for our apparel. If we get our order in by 5 p.m. from here, the next day it will be delivered. That’s really important for business.” Before Greenlight, Suzanne described how “We had been sweating it out.”  Suzanne’s tee-shirt store only had access to 800 Kbps DSL upload speed. She would talk to the modem. “Please upload by 5 p.m. Please upload.” Now she can just go home and put her order in at the last minute. “We are comfortable it will upload immediately….It’s just so much faster. Super fast…Having Greenlight has just been very beneficial for our business.” 

She also subscribes to Greenlight from home and her fiber connection is able to manage data intense uploads required for sending artwork, sales reports, and other large document transfers. As a Town Commissioner, Suzanne sees Greenlight service in Pinetops as more than just a chance to stop "sweating it out."

“I just see a brighter future for our town now,” she reflected. “It’s a neat selling point. It’s difficult in small rural areas to get good technology-based companies. This now opens the door for us to recruit just those kinds of businesses…It’s hard to imagine a business that does not need Internet access.” 

Grover Beach Conduit: California's New "Silicon Dunes"

The city of Grover Beach, California, recently finalized a 10-year agreement with Digital West, Inc., to bring gigabit speed fiber to local businesses. The coastal town in San Luis Obispo (SLO) County wants to attract tech companies like those making waves in Silicon Valley and the "Silicon Beach" in Los Angeles. 

Terms of Agreement

The agreement specifies that Grover Beach will maintain ownership of the conduit system and lease Digital West conduit access at an annual rate of 5.1 percent of total fiber revenue. Digital West will build, own, and maintain the fiber-optic network, several lines of which will be leased to the city for public administrative use. Upon approval from both parties, the 10-year agreement can be renewed in 5-year increments.

A May 2016 Grover City staff report provided an optimistic forecast from Digital West:

The forecasted revenue amount speculated by Digital West Network, Inc. for the City is estimated to grow from a first year projection of $4,437 to $112,302 in year 10, for a total over the 10 years of $602,285. This amount is much higher than the originally predicted 10 year projection of $32,038 per year represented by Digital West Network, Inc. in 2014. The increase projections are due to the fact that they plan to add the residential market to our options which is projected to fall under the lease agreement. This brings greater benefit to the community, as well as more revenue commission to the City. 

We outlined the network’s projected costs in a story last year.

Fiber Surfin’ USA

The Central Californian coastal city hopes its unique location near a trans-Pacific cable landing station will attract scores of investment and cause the moniker “Silicon Dunes” to stick. Pacific Crossing’s undersea cable is part of a four point fiber ring connecting the Japanese cities of Shima and Ajigaura with Harbour Pointe, Washington, and Grover Beach.

Soon, Faster Internet Service For Santa Cruz's Small Businesses

As the city of Santa Cruz and local Internet service provider Cruzio bring their negotiations to a close, the parties have been working diligently to dot all the i's and cross all the t's. Announced in June 2015, this public private partnership intends to build a multi-million dollar fiber network throughout the city.

According to Cruzio's most recent blog update:
[W]e’ve been locked away in our Santa Cruz Fiber Project underground bunker with our partners at the City, engaging in high-level cogitation, extreme fine-tuning and the general hashing out of every little detail of the project and the agreement.

Local news station KION covered the benefits of faster Internet service, especially for the small business community in Santa Cruz. The news station also includes a clip from a recent “City Hall to You” community meeting where people learned more about the network.

A Small Business Town

“It's absolutely critical. Without high-speed Internet activity here, we would be dead in the water,”

Explained Susan Pappas, the owner of True Olive Connection, a local olive oil store. She described how her business would fall apart without high-speed Internet access. Everything from printers to inventory would stop working.

At the “City Hall to You” meeting, Santa Cruz Economic Development Manager J. Guevara laid out the facts, emphasizing how Internet access is not just for tech startups. High-speed Internet access makes small businesses function and helps job-seekers find employment. Guevara told KION,

“Over 82 percent of the businesses in the city of Santa Cruz are 10 or fewer employees. This is a small business town and Internet is the infrastructure that makes it all possible.”

Infrastructure from Santa Cruz and Cruzio

Meeting the American Cable Association - Community Broadband Bits Podcast Episode 202

The American Cable Association (ACA) represents over 800 small and medium-sized cable companies around the United States, including many municipal cable and fiber-optic networks. This week, we talk with ACA President and CEO Matt Polka about what they do and how small cable companies are vastly different from the big companies like Comcast and Charter. We spoke after it was clear Charter's merger with Time Warner Cable would be approved, but before this article in Ars Technica effectively missed the point of Matt Polka's objection to the competition requirement in the merger. In our interview, we discuss the larger problem - that the federal government consistently puts its thumb on the scale to benefit the biggest cable companies at the expense of smaller ones. Forcing Charter to compete with Comcast would be a far bigger benefit to communities than having it take over small cable networks. We wrap up with a discussion about how smaller companies, which includes all municipal networks, are disproportionately impacted by regulations that do not distinguish between the biggest providers (that tend to cause the majority of problems) and the smaller providers (that bear the brunt of regulations designed for reigning in the problems caused by the big carriers). 

This show is 29 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Forget the Whale for the music, licensed using Creative Commons. The song is "I Know Where You've Been."