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SandyNet Increases Speeds, Keeps Low Prices

On July 4th, Sandy, Oregon’s municipal fiber-optic network, SandyNet, permanently increased the speed of its entry-level Internet package from 100 Megabits per second (Mbps) to 300 Mbps at no additional cost to subscribers.

The city announced the speed boost for its $39.95 per month tier in a recent press release, calling it “one of the best deals in the nation.” SandyNet customers witness blazing fast download speeds at affordable prices and benefit from symmetrical upload speeds, allowing them to seamlessly interact with the cloud and work from home. 

Sandy is still home the “$60 Gig” (see price chart), one of the premier gigabit Internet offers in the nation. Without an electric utility, SandyNet’s unique model can be applied to “Anytown, USA.”

Read our report on Sandy, SandyNet Goes Gig: A Model for Anytown, USA, for details on the community's Fiber-to-the Home (FTTH) and fixed wireless networks and listen to Chris interview Sandy officials in Community Broadband Bits Podcast Episode 167.

Check out our video on Sandy:

OECD Study on Munis Digs Deep, Discovers Dividends

A recent large-scale cross-national study from the Organisation for Economic Co-operation and Development (OECD) offers strong evidence that municipal broadband networks provide numerous benefits for communities around the world. Among the study’s major findings include evidence that municipal networks contribute to efforts aimed at improving local economic development, stimulating business productivity and innovation, and enhancing people’s quality of life.

The study's analysis of European nations is of special interest to us as European municipal networks are the only international municipal networks in the study that closely resemble U.S. municipal networks. In particular, the findings from the study’s central econometric analysis of Swedish municipal networks have direct implications for our understanding of the impact of municipal networks in the United States.

Findings from Econometric Analysis of Sweden

As the researchers note, extensive municipal broadband development across Sweden has contributed to a remarkably high level of nationwide fiber penetration, putting the country far ahead of the US in global rankings. The researchers report a series of features and benefits of Sweden’s widespread fiber penetration and aggressive municipal broadband efforts, including:

Increased rates of employment (with even greater employment increases in highly urbanized municipalities), increased business creation, and reduced car usage (also greater in the most urban cities) as fiber networks make it easier to telecommute to work and to shop for goods and services online.

Overall Economic Development Benefits: The authors cite a previous socio-economic analysis of the municipally-owned broadband network in Stockholm, Sweden showing that this network has generated about $2.5 billion (U.S. dollars) in economic returns for the city, or three times the initial investment. This includes $1.2 billion through the creation of new jobs, $800 million in new economic activity for the broadband supplier industry, $300 million saved by the City of Stockholm from lower service costs, and $300 million in increased values of public housing properties, along with additional savings.

Benefits from E-services: 80 percent of municipalities in Sweden are able to provide enhanced e-services including home care, nursing services, social services, library services, civil dialogue, and digital security alarms, enabling significant cost savings for goods and services and improved quality of life for Swedish citizens. In particular, users of home medical care reported that digitally facilitated home care give them an increased sense of independence, security, participation, and freedom of choice in their health needs.

Benefits of improved competition: The prices for Internet service over Swedish municipal networks are 23 percent to 38 percent lower than national prices. Further, prices for service over open access networks are also 25 percent lower compared to those municipal networks that have only one ISP.

Policy: Although the Treaty on European Union generally prohibits state aid out of concern that it could stifle competition and discourage private investment, the Treaty does permit state aid for public private partnerships (PPPs). Notably, the Treaty also makes exceptions on its prohibition of state aid for rural areas lagging behind the European Commission’s Digital Agenda 2020 targets which call for universal European access to 30 Megabits per second (Mbps) broadband speeds and 100 Mbps connectivity for at least 50 percent of the population by 2020.

Early Federal Stimulus: A federal bill in the year 2000 allocated $900 million to stimulate nationwide equality of access to information for Swedish citizens. The authors credit this bill with prompting a proliferation of major broadband initiatives in the ensuing years.

The Swedish Model: To be eligible for state aid, the Swedish government requires community networks to be operator-neutral (open access). Thus, most Swedish community networks are open access and 93 percent of the nation’s municipal networks have at least two ISPs offering service.

PPPs: These Swedish municipal networks are generally structured as PPPs in which a municipality or regional group of cities own a carrier-neutral infrastructure (owned by a neutral party that is NOT one of the ISPs). As the authors report, a general consensus exists among Swedish policy makers and market actors that PPPs, in combination with an open access model, serve to effectively “safeguard a competitive market on services and applications for the benefit of consumers and businesses” (p. 51).


Additional Findings about International Municipal Networks

The study’s strongest and most consistent finding was that municipal broadband networks around the world inject competition into local telecommunications markets. According to the researchers, these enhanced competitive environments generally lead to lowered Internet service prices, increased investment by the private providers in markets with municipal initiatives, and/or increased opportunities for private ISPs to use shared infrastructure over open access networks.

An analysis of the UK offers conclusive evidence that access to fiber networks in businesses leads to increased worker productivity.

The importance of pre-existing public utilities: Community networks tend to have the most success in communities that had pre-existing public utilities for services such as water, energy, or gas before they developed their community networks.

Successful municipal networks require competent personnel, sound organizational structure: Cases of failed municipal networks tend to share a common characteristic: lack of previous organizational and financial stability in those cities. In other words, in the observed cases of some failed municipal networks, the study’s findings suggest that such failure is typically due to pre-existing deficiencies in the organizational structure and personnel in those communities, not because the networks were inherently problematic.

Citizens are willing to contribute resources/expertise to solve local broadband needs: In addition to the country's 190 municipal networks, Sweden also has around 1000 small village fiber networks that are generally operated as co-ops. The authors observed cases in these villages where the citizenry voluntarily contributed their labor or other resources, including machinery, to assist in the construction of municipal broadband networks. Some of the telecommunications companies in Sweden provide tool kits and other services to help villages collaborate to help solve their own fiber access needs.

The study offers a useful overview of municipal broadband issues in each nation studied, providing a glimpse into a variety of relevant public policies, common strategies, and other major developments in the deployment of municipal networks in the respective countries. We encourage you to check out the entire study.

Additional Notes on the Analysis of Swedish Municipal Networks

Importantly, the researchers chose Sweden for their central econometric analysis largely because its high number of municipal fiber networks offers an especially large sample set for analysis purposes. They were also careful to statistically control for potentially confounding variables in their analyses.  For example, they controlled for variables that could otherwise skew the evidence of benefits from municipal networks such as local tax rates, average yearly income per person, population age distribution, and share of foreigners and immigrants. These measures help to ensure that the observed benefits of municipal networks are actually due to the impact of municipal networks and not a product of any other secondary variables. 

Modest Investment Yields Results in Steamboat Springs - Community Broadband Bits Episode 163

When Steamboat Springs resolved to improve Internet access for key community anchor institutions and businesses, they decided to make an economical investment in a carrier neutral facility to allow multiple ISPs to invest and compete with each other. In episode 163 of the Community Broadband Bits Podcast, Tim Miles explains what that means and how they did it.

Tim is the Technology Director at Steamboat Springs and South Routt School Districts in Colorado. He tells us about the poor connectivity the community had from CenturyLink and how they opened a bottleneck to encourage more investment. In part because of how Colorado limits local authority to build networks, they formed the Northwest Colorado Broadband Cooperative with the local Chamber of Commerce.

They are already seeing benefits in the form of lower prices for anchor institutions and reduced outages - Tim describes just how painful those outages had been when there was no local Internet choice.

Read the transcript from this discussion here.

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

This show is 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to other episodes here or view all episodes in our index. You can can download this Mp3 file directly from here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."

SandyNet Sharing Awesome Gig Deal With Local Businesses

SandyNet has introduced some incredible fiber connectivity deals for local businesses. Like residents, businesses can now get gigabit service for $60 per month and 100 Mbps for $40 per month. The utility also continues to offer enterprise connections, with rates established on a case-by-case basis.

Speeds are symmetrical which can be a critical factor for businesses that often must upload large amounts of data to work with clients. 

Until SandyNet began to deploy the FTTH network, business customers that needed more bandwidth relied on the town's dedicated Wi-Fi service which offered advertised speeds of up to 30 Mbps download, however, that cost $175 per month.

Smaller businesses could sign up for traditional Wi-Fi - the system residents also used - but speeds maxed out at only 5 Mbps or 10 Mbps download. Prices were $25 per month and $35 per month respectively.

Wi-Fi business customers can now make the switch to fiber for no extra fee. Those that are new customers to SandyNet will need to pay a one-time $350 connection fee.

Hungry for more on the SandyNet story? For more on how they did it, check out our video Gig City Sandy: Home of the $60 Gig. You can also listen our interview with Joe Knapp in Episode #17 of the Community Broadband Bits podcast. 

Comcast's Big Gig Rip-Off

For some five years now, many have been talking about gigabit Internet access speeds. After arguing for years that no one needed higher capacity connections, Comcast has finally unveiled its new fiber optic option. And as Tech Dirt notes, it is marketed as being twice as fast but costs 4x as much (even more in the first year!).

We decided to compare the Comcast offering to muni fiber gigabit options.

Comcast's Big Gig Rip-Off

For more information on the great offer from Sandy, see the video we just released about their approach.

SandyNet Now Offering Gigabit FTTH in Oregon

Back in September, SandyNet announced that its FTTH gigabit network was officially up and running. The utility will continue to expand and eventually bring the network to all 4,000 households. Light Reading recently spoke with Joe Knapp, Sandy's IT Director and general manager of the broadband utility about the new offering. With a population of 10,000, Sandy is in Oregon between Portland and Mount Hood.

The network is completely underground. Sandy is one of many communities that have developed smart conduit policies, reducing the cost and preparing the environment for deployment over a period of years.

You can listen to our discussion with Knapp on Sandy's conduit policy in Episode 17 of the Community Broadband Bits podcast. We also spoke with City Manager Scott Lazenby about Sandy's conduit policies during Episode 48.

Like many other communities we study, Sandy invested in connectivity out of necessity. Knapp told Light Reading:

"We started out because we couldn't get a DSL line at city hall," says Joe Knapp, IT director for the City of Sandy and general manager of SandyNet. The utility first built a 900MHz wireless network, then WiFi, then a wireless mesh network to connect residents to broadband, he says. "That became so popular that we took about 40% of the market with wireless, but that was a hard thing to sustain."

The journey to FTTH was not an easy one:

"We started to realize that a lot of communities are doing this," Knapp says. "It took three years of beating my head against the wall to finally get it to happen."

Gigabit speeds are something to boast about, but Knapp says SandyNet will not go to extremes to push them:

"As a muni network, we view this as trying to benefit the community. I tell them to try the 100-Meg service first -- we're actually not pushing the gig that hard."

Pricing for gigabit service is $59.95 per month; 100 Mbps service is $39.95 per month. All speeds are symmetrical and there are no caps or contracts.

LPC Residential Gig Service in Longmont Has A New Name; Available November 3rd

Big changes are happening in Longmont as the LPC builds out its network expansion. In addition to new services and new pricing, LPC for residents has a new name - NextLight. At a recent city council meeting, LPC announced that a number of residents in south central Longmont will be able to enroll for NextLight services as soon as November 3rd.

Homeowners who sign up within the first three months that service is available in their area, will get 1 Gbps symmetrical service for about $50 per month or half the regular residential price. Those customers, considered Charter Members, will keep the introductory price as long as they keep their service and will take that rate to their new home while also reserving that rate for the home they leave. The Times Call reports:

And if a homeowner does not sign up in the first three months, they could still obtain a customer loyalty price after one year, knocking the regular price down from $100 a month to $60 a month.

The city will also offer a lesser speed of 25 megabits per second for both uploading and downloading for about $40 a month and that price is not discounted for charter members or 1-year-members.

 At the meeting, LPC Director Thomas Roiniotis explained the reason for the new brand:

NextLight was named with Longmont's original municipal electricity utility that the city acquired in 1912 in mind.

"What we're saying is now, today, with the same type of community support, we're building a network that uses beams of light to transmit information," Roiniotis said Monday.

Spencer Municipal Utilities Expands Upgrade to Fiber in Iowa

Spencer Municipal Utilities (SMU) in Iowa is expanding an upgrade project to bring fiber to approximately 2,000 additional premises. A little over a year ago, we reported on the switch from coax cable to fiber for 700 municipal network customers with no rate increase. According to the Spencer Daily Reporter, the original project is almost completed; the expanded upgrade will cost approximately $4.5 million.

Amanda Gloyd, marketing and community relations manager, told the Daily Reporter:

Since SMU first began offering Internet service to customers the amount used by customers has increased and we expect to see that continue. For example, the average peak usage from customers in the fall of 2010 was 125MB and today it averages around 800MB with maximums over 1,200 MB. The project to convert the whole town of Spencer will take several years and we continue to develop plans for future projects.

In April, the SMU Board of trustees approved a modest rate increase for video and Internet access to help defray increased costs for video content and increased demand on the system. The last time rates went up for video service was early 2013; residential Internet access rates have remained the same since November 2011.

New rates went into effect on June 1. Internet access rates range from $20 per month for 1 Mbps/256 Kbps to $225 per month for 100 Mbps/10 Mbps. Basic level video service begins at $14 per month; "Basic Plus" is $50.75 per month. Digital service and a range of channel choices are available as add-ons.

SMU also provides voice and partners with T-Mobile to provide wireless phone service in the community. The network began serving customers in 2000.

Spencer, population 11,300, is located in the northwest section of the state. In the Community Broadband Bits podcast episode #13, Chris spoke with Curtis Dean of the Iowa Association of Municipal Utilities (IAMU). Dean shared a story about Hansen's Clothing, a local upscale clothier in Spencer. Thanks to the presence of the SMU network, Hansen's was able to expand its sales to the online marketplace. Hansen's was struggling until it obtained the ability to reach clientele in New York and Los Angeles. The fresh business allowed Hansen's to flourish.

Fibrant Signs Up 3,000th Customer, Increases Top Speed to Gig With No Rate Hike

Salisbury's Fibrant network recently signed on its 3,000th customer, reports WCNC from Charlotte. The publicly owned network also recently increased speeds for residential customers with no price hikes, reports BBP Mag. Households that were signed up for symmetrical 100 Mbps service for $105 per month will now have gigabit service for the same rate.

BBP Mag spoke with Dale Gibson, one of Fibrant's first gigabit customers:

“Generally when an Internet service provider gives a speed, it represents bandwidth, or a theoretical 'best effort' speed, not the 'throughput' or actual speed. My speed tests are consistently above 900 Mbps.” A network professional for over 20 years, Gibson added that typically even in the best test conditions, it is more common to see numbers in the 800s and, “Fibrant should be very proud of that 900 number.”

Other speed hikes include:

20/20 Mbps for $45 per month raised to 50/50 Mbps

30/30 Mbps for $65 per month raised to 75/75 Mbps

50/50 Mbps for $85 per month raised to 100/100 Mbps

The network has also revamped its video packages to include more channels, new HD options, and remote DVR. For a complete overview of Fibrant's new packages, visit their pricing page.

Early Lessons from Longmont - Community Broadband Bits Podcast 106

Longmont is about to break ground on the citywide FTTH gigabit network but it is already offering services to local businesses and a few neighborhoods that started as pilot projects. Vince Jordan, previously a guest two years ago, is back to update us on their progress.

Until recently, Vince was the Telecom Manager for Longmont Power and Communications in Colorado. He has decided to return to his entrepreneurial roots now that the utility is moving forward with the citywide project. But he has such a great voice and presence that we wanted to bring him back to share some stories.

We talk about Longmont's progress and how they dealt with a miscalculation in costs that forced them to slightly modify prices for local businesses shortly after launching the service. And finally, we discuss the $50/month gigabit service and how Longmont has been able to drive the price so low.

You can read our full coverage of Longmont from this tag.

Read the transcript from our discussion 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 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

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

Find more episodes in our podcast index.

Thanks to Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."