Tag: "bristol"

Posted August 7, 2017 by lgonzalez

If you’re a regular reader at MuniNetworks.org, listen to our podcasts, or if you simply follow publicly owned network news, you know an increasing number of communities have decided to invest in local connectivity solutions in recent years. We’ve watched the number of “pins” on our community network map multiply steadily, but every now and then, a network drops off through privatization.

FastRoads Sold To N.H. Optical Systems

New Hampshire FastRoads received America Recovery and Reinvestment Act (ARRA), which combined with state funding, created the open access fiber optic network in the southwest section of the state. Over the next several years, the network expanded with private donations and local matching funds. Many of the premises that connected to the network had relied on dial-up before FastRoads came to town. But in part because state law makes bonding for network expansion difficult, Fast Roads will no longer be locally controlled.

The Monadnock Economic Development Corporation (MEDC), a nonprofit organization whose purpose is working to see like projects are completed that will improve economic development prospects in the region managed the project. MEDC contracted with another entity to maintain the network, which cost approximately $15,000 per month. Since they had achieved their core goal - the construction and launch of the network - MEDC had been looking for another entity to take over the network or to partner with them. They recently finalized a deal to sell the network to New Hampshire Optical Systems

logo-fast-roads-2017.png Back in 2013, Christopher spoke with Carole Monroe, who was the FastRoads Project CEO but has since moved on to ECFiber in Vermont. She described how the introduction of the network inspired incumbents to lower prices - a win for everyone, whether they connected to FastRoads or not. She also told us how community anchor institutions (CAIs) were getting better...

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Posted April 24, 2017 by lgonzalez

A little over a year ago, we first shared the news about Bristol’s decision to privatize its FTTH network, OptiNet. Virginia based Sunset Digital Communications offered to purchase the network for $50 million. The network has saved Bristol millions of dollars, stimulated economic development, and cut telecommunications costs for local residents and businesses. Nevertheless, after several corrupt officials drove the network into a dark period of scandal, all those advancements paled and Bristol was ready to sell the network.

After months of negotiations with BVU’s partner in the Cumberland Plateau area service area, the details for the sale are coming together.

When There's A Partner

One of the last steps to completing the sale required approval from the Cumberland Plateau Company (CPC), which operates as a partner with BVU to bring connectivity to four additional counties in Virginia. As a partner with OptiNet in those areas, CPC owns approximately 50 percent of the assets.

When Sunset Digital offered $50 million for the BVU assets, CPC obtained the right of first refusal for the assets in the four counties where BVU and CPC work together as partners according to their contract.

Back in the fall of 2016, CPC was concerned about the legality and the details of the proposed transaction; they decided to wait for federal and state review before granting approval. Because the NTIA, the Economic Development Administration (EDA), and the Virginia Tobacco Commission provided grant funding to the CPC region for the deployment, the agencies needed to review and approve the proposal. The agencies approved the sale, but required that a large amount of BVU debt be paid. One of the claims that they required be paid was a claim for $8 million from CPC.

Approving The Offer

As part of the offer, Sunset promises to invest $6.5 million to connect more homes and businesses in the CPC region. They estimate CPC will gain about $21 million in revenue over 13 years while Sunset operates the network. CPC will retain ownership of its assets in the CPC service area and Sunset will transfer ownership of equipment in the CPC area to CPC.

After several rounds of...

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Posted July 5, 2016 by christopher

In celebration of Independence Day, we are focused this week on consolidation and dependence. At the Institute for Local Self-Reliance, we are very focused on independence and believe that the consolidation in the telecommunications industry threatens the independence of communities. We doubt that Comcast or AT&T executives could locate most of the communities they serve on a blank map - and that impacts their investment decisions that threaten the future of communities.

So Lisa Gonzalez and I talk about consolidation in the wake of Google buying Webpass and UC2B's partner iTV-3 selling out to Countrywide Broadband. And we talk about why Westminster's model of public-private partnership is preferable to that of UC2B.

We also discuss where consolidation may not be harmful and how the FCC's order approving the Charter takeover of Time Warner Cable will actually result in much more consolidation rather than new competition.

Read the transcript from this show here.

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

This show is 18 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Fifes and Drums of the Old Barracks for the music, licensed using Creative Commons. The song is "Cork Hornpipe."

Posted February 12, 2016 by lgonzalez

For more than a decade, the people of Bristol, Virginia have enjoyed what most of us can only dream about - fast affordable, reliable, connectivity.  In recent days, we learned that Bristol Virginia Utilities Authority (BVU) has entered into a deal to sell its OptiNet triple-play fiber network to a private provider. The deal is contingent on approval by several entities.

As we dig deeper into the situation, we understand that troubles in southwestern Virginia and Bristol have led to this decision. Nevertheless, we urge the Bristol community to weigh the long-term consequences before they sacrifice OptiNet. Once you give up control, you won’t get it back.

"...A Few Bad Apples..."

If the people of Bristol surrender this valuable public asset to the private market, they run the risk of undoing 15 years of great work. None of this is a commentary on the private provider, Sunset Digital Communications, which may be a wonderful company. The problem is that Sunset will be making the decisions in the future, not the community. 

OptiNet has helped the community retain and create jobs, attracting and retaining more than 1,220 well-paying positions from Northrup Grumman, CGI, DirecTV, and Alpha Natural Resources. Businesses have cut Internet access and telecommunications costs. Officials estimate around $50 million in new private investment and $36 million in new annual payroll have come to the community since the development of OptiNet. The network allowed public schools to drastically reduce telecommunications expenses and introduce gigabit capacity long before such speeds were the goal among educators.

Schools and local government saved approximately $1 million from 2003 - 2008. Subscribers have saved considerably as well, which explains OptiNet's high take rate of over 70 percent. Incumbent telephone provider Sprint (now CenturyLink) charged phone rates 25 percent higher than OptiNet in 2003. The benefits are too numerous to mention in one short story.

However, BVU is emerging from a dark period marked by corrupt management. This sad reality actually makes its considerable achievements all the more remarkable. Last...

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Posted June 25, 2014 by lgonzalez

“There are companies that do what we do, but we can do it in hours, and they can take weeks,” said Posey. “Anywhere else, it would take a lot more time and a lot more money ... Chattanooga is essential to our business model.”

Al Jazeera America's Peter Moskowitz recently spoke with Clay Posey, one of the entrepreneurs flocking to Chattanooga for the network. Posey works in one of the startup incubators there, Co.Lab, developing his idea for pre-operative models that allow surgeons to prepare before operating on patients.

While Chattanooga may not be the norm and may not be an easy venture for every municipality, it lifts the bar. From the article:

“Whenever a corporation like Comcast wants to do something like raise prices, we can point at Chattanooga and say, ‘Why can’t we have something like that?’” said Christopher Mitchell, head of the community broadband networks initiative at the nonprofit Institute for Local Self-Reliance. “It establishes a baseline or at least an aspirational standard.”

The article describes lobbying efforts by large corporate providers designed to stop the municipal networks model. Another Chattanooga entrepreneur told Moskowitz:

“Having public or quasi-public Internet service providers is a good solution to consolidation because they most likely won’t be sold,” said Daniel Ryan, a local Web developer who helped run the digital operation of Barack Obama’s 2012 presidential campaign. “Do I think if every city did this, Comcast would go out of business? No. But it means there will always be competition.”

Moskowitz included a brief historical summary of the network, its contribution to the electric utility, and the challenges created by state barriers. He included our Community Broadband Networks map.

For more detail on Chattanooga's fiber network, download our case study Broadband at the Speed of Light: How Three Communities Built Next-Generation Networks. The case study also covers the communities of Bristol, Virginia and Lafayette, Louisiana. We...

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Posted July 30, 2013 by christopher

Jim Baller has been helping local governments to build community owned networks for as long as they have been building them. He is the President of and Senior Principal of the Baller Herbst Law Group in Washington, DC. Jim joins us for Episode #57 of the Community Broadband Bits podcast to discuss some of the history of community owned networks.

Jim has a wealth of experience and helped in many of the most notable legal battles, including Bristol Virginia Utilities and Lafayette.

We start by noting some of the motivations of municipal electric utilities and how they were originally formed starting in the late 19th century. But we spend the bulk of our time in this show focusing on legal fights in the 90's and early 2000's over whether states could preempt local authority to build networks.

In our next interview with Jim, we'll pick up where we left off. If you have any specific thoughts or questions we should cover when we come back to this historical topic, leave them in the comments below or email us.

You can learn more about Jim Baller on his website at Baller.com.

Read the transcript from this episode 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 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 can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Break the Bans for the music, licensed using Creative Commons.

Posted November 29, 2012 by lgonzalez

We have already published a fact sheet on the critical role community broadband plays in job development. Now, ILSR presents a collection of how commnity owned broadband networks save money for local government, schools, and libraries while providing cutting edge services. The Public Savings Fact Sheet is now available.

Though schools, libraries, and other community anchors need access to faster, more reliable networks, the big cable and telephone companies have priced those services so high that they are breaking the budget. But when communities create their own connections, affordable high capacity connections are only one of the benefits. A community owned network offers the promise of self-determination -- of upgrades on the community's time table and increased reliability for emergency responders.

The Public Savings Fact Sheet is a great piece to share to mobilize other members of your community. Share it with decision makers and use it to start meaningful conversations. Distribute it widely and often.

We are always developing new resources. If you have an idea for a new fact sheet, we want to hear it.

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