Tag: "rates"

Posted February 8, 2018 by lgonzalez

In a series of decisions, Loveland, Colorado’s City Council voted earlier this week to take the next step toward developing a municipal broadband network. In addition to allocating funds to develop a business plan, city leadership established an advisory board, accepted task force recommendations, and voted to amended current code to allow the electric utility to handle communications activities.

No Public Vote

The council addressed whether or not to ask voters to approve efforts to establish a municipal broadband network, even though the issue was not part of the agenda. City staff drafted an amendment during the meeting to require a vote, but after prolonged discussion City Council members voted 5-4 against including it.

Last fall, the city of Fort Collins needed to bring the issue before voters in order to amend their charter so community leaders could move forward with a municipal network. After spending more than $900,000 through a bogus citizens group to try to stop the measure, Comcast was unable to persuade Fort Collins to defeat it. Nevertheless, most of Loveland’s council members don’t want a repeat of the expensive hassle in Fort Collins.

Councilman John Fogle said that, prior to the Fort Collins election, he supported the idea of a vote on the issue, but he feels different now. "It's not an even playing field when incumbent industries will spend $900,000 at the drop of the hat to perpetuate ... a monopoly," he said at the February 6th Council meeting.

Other council members who voiced opposition to a vote said that they’ve heard from constituents since 2015, when the city voted to opt out of the state’s restrictive SB 152. Since then, residents have contacted them to express their support to move the project forward. "I'm tired of being beaten," said Councilor Rich Ball, "...

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Posted January 18, 2018 by lgonzalez

The FCC collects data from Internet Service Providers that reflects census blocks where they offer service to at least one premise. Currently, the Commission does not collect information about rates subscribers pay. A new report from the Berkman Klein Center dives into prices subscribers pay and also looks at trends from national companies as well as local publicly owned networks. The report, Community-Owned Fiber Networks: Value Leaders in America, supports what we’ve always found — that publicly owned networks offer the best all around value for the communities that make the investment. Download the report.

In the Abstract, authors David Talbot, Kira Hessekiel, and Danielle Kehl describe their approach:

We collected advertised prices for residential data plans offered by 40 community-owned (typically municipally owned) Internet service providers (ISPs) that offer fiber-to-the-home (FTTH) service. We then identified the least-expensive service that meets the federal definition of broadband—at least 25 Mbps download and 3 Mbps upload—and compared advertised prices to those of private competitors in the same markets. We found that most community-owned FTTH networks charged less and offered prices that were clear and unchanging, whereas private ISPs typically charged initial low promotional or “teaser” rates that later sharply rose, usually after 12 months. We were able to make comparisons in 27 communities. We found that in 23 cases, the community-owned FTTH providers’ pricing was lower when averaged over four years. (Using a three year-average changed this fraction to 22 out of 27.) In the other 13 communities, comparisons were not possible, either because the private providers’ website terms of service deterred or prohibited data collection or because no competitor offered service that qualified as broadband. We also made the incidental finding that Comcast offered different prices and terms for the same service in different regions.

The report offers frank visual comparisons of the authors’ findings. Most of the comparisons show big national providers advertising offering service in the markets, but there are a few...

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Posted January 16, 2018 by lgonzalez

Now that they have removed the weight of Colorado’s restrictive SB 152, Greeley is looking forward to future solutions to poor Internet access. In a recent letter to the local Tribune, resident Richard Reilly offered three reasons why Greeley should develop a plan to move toward municipal broadband.

Reilly’s points are:

First and foremost, net neutrality must be at the heart of a municipal broadband. As the big Internet Service Providers start to throttle specific websites that compete or offer tiered packages, Greeley must commit itself to net neutrality. One price for full Internet access. Period.

Secondly, speed needs to be a priority. Comcast and the other ISPs have received billions of dollars to build the infrastructure for gigabit speeds. If Greeley can commit to the infrastructure to offer gigabit speeds, other ISPs will struggle to survive in our city — and good riddance.

Thirdly, customer service is key.

Already On Track

Reilly’s suggestion follows the community’s decision last summer to fund a feasibility study. At the time, they expressed a hope that the study might encourage incumbents to offer better rates and services. In addition to better connectivity for the general public, Greeley’s Family and Recreation Center’s poor Internet access interfered with bookings. When the City Council decided to fund the study, they cited economic development as a key factor in finding ways to improve local connectivity.

Local Commitment

Since the City Council’s decision to fund the feasibility study, the FCC has repealed network neutrality protections and is considering lowering the speed definitions of broadband. Reilly writes that Greeley needs to engage in local action:

Greeley is in a unique position to protect its residents from a rogue administration. Despite the fact that a vast majority of Republicans, Democrats and independents support net neutrality rules, the FCC rolled back the regulations meant to protect the freedom to information in this country.

...
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Posted January 10, 2018 by lgonzalez

The FCC collects data from Internet Service Providers that reflects census blocks where they offer service to at least one premise. Currently, the Commission does not collect information about rates subscribers pay. A new report from the Berkman Klein Center dives into prices subscribers pay and also looks at trends from national companies as well as local publicly owned networks. The report, Community-Owned Fiber Networks: Value Leaders in America, supports what we’ve always found — that publicly owned networks offer the best all around value for the communities that make the investment.

Download and read the full report here.

In the Abstract, authors David Talbot, Kira Hessekiel, and Danielle Kehl describe their approach:

We collected advertised prices for residential data plans offered by 40 community-owned (typically municipally owned) Internet service providers (ISPs) that offer fiber-to-the-home (FTTH) service. We then identified the least-expensive service that meets the federal definition of broadband—at least 25 Mbps download and 3 Mbps upload—and compared advertised prices to those of private competitors in the same markets. We found that most community-owned FTTH networks charged less and offered prices that were clear and unchanging, whereas private ISPs typically charged initial low promotional or “teaser” rates that later sharply rose, usually after 12 months. We were able to make comparisons in 27 communities. We found that in 23 cases, the community-owned FTTH providers’ pricing was lower when averaged over four years. (Using a three year-average changed this fraction to 22 out of 27.) In the other 13 communities, comparisons were not possible, either because the private providers’ website terms of service deterred or prohibited data collection or because no competitor offered service that qualified as broadband. We also made the incidental finding that Comcast offered different prices and terms for the same service in different regions.

The report offers frank visual comparisons of the authors’ findings. Most of the comparisons show big national providers advertising offering service in the markets, but there are a few places where...

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Posted January 8, 2018 by lgonzalez

In the midst of price increase announcements from Comcast and others for 2018, gigabit subscribers in Longmont, Colorado, are enjoying a price decrease from their publicly owned network, NextLight.

Happy New Year

As of January 1st, standard residential gigabit Internet access rates dropped from $99.95 per month to $69.95 per month. According to Longmont Power and Communications (LPC), about 28 existing subscribers obtained gigabit speeds at the old rate; along with any new gigabit subscribers, the existing customers will receive the new rate.

In addition to this most recent price reduction, NextLight offers a loyalty bonus for subscribers who obtain service for 12 continuous months. Gigabit subscribers who qualify have rates reduced to $59.95 per month. Charter Members — residents who subscribe for services within three months that service is available within their area — are able to receive gigabit connectivity for $49.95 per month as long as they keep their services. Charter Member rates stay with the premise if they sell their home and take that rate with them to their new residence. NextLight subscribers can also sign up for 25 Mbps service for $39.95 per month.

All speeds are symmetrical so subscribers can take advantage of the robust upload speeds. Subscribers are better positioned to work from home and establish at-home businesses. With symmetrical connectivity, Longmont’s school children can take full advantage of web based home work programs and adults who want to pursue distance learning don’t have the hurdle of poor Internet access to handicap their goals.

Part Of The Success

In addition to affordable rates, NextLight offers promotions to increase sign-ups. Subscribers who successfully refer others will get one month of free service for each new subscriber. NextLight is extending the promotion to its Digital Voice service during the first three months in 2018.

"We're customer-based and customer-focused," Longmont Power and Communications General Manager Tom Roiniotis said in a statement.

"This is a further opportunity for residents who didn't sign up...

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Posted September 4, 2017 by lgonzalez

It’s been almost two years since 82 percent of Loveland voters chose to opt out of Colorado’s restrictive SB 152. Last fall, the community started working with a consultant on a feasibility study and now, residents and businesses are being asked to complete a second survey to gauge interest in the potential for connectivity offered by the city.

One Step At A Time

Loveland, a community of about 69,000 people in the southeast corner of the state, completed a survey last year, which revealed that 56 percent of residents and 37 percent of businesses feel incumbents are not meeting their connectivity needs. Affordability is a big factor for both sectors with lack of capacity and reliability following close behind. Residents reported they were also unhappy with customer service. Within both sets of respondents, a high percentage showed interest in obtaining service directly from the city or from a private provider working with the city.

This summer, the city released an RFP, hoping to elicit interest from the private sector for potential partners to help them develop a municipal fiber network. Read the full text of the RFP here.

Many premises in Loveland subscribe to cable from Comcast, which faces little or no competition from services other than DSL at much slower speeds. Resident Roger Ison wrote to the Reporter Herald recently encouraging residents and business owners to participate in the survey:

Comcast reaches enough Lovelanders to set the market price for high-speed service here. Competition and citywide access are inadequate because no other competitor has deployed a modern, high-performance network that reaches most potential subscribers.  

Ison pointed out one of the positive side effects of municipal Internet infrastructure - its influence on incumbent pricing. When competition comes into a community in the form of a publicly owned network, incumbents that may have been setting rates unchecked suddenly reexamine their prices. The same holds true for customer service. It isn’t only munis that offer locals a respite from inflated prices, any...

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Posted July 18, 2017 by lgonzalez

As if bringing high-quality connectivity to rural central Minnesota wasn’t enough, RS Fiber Cooperative has recently established the “Cornerstone Member” program. Now that gigabit connectivity is available, existing residential customers can upgrade from 100 Megabits per second (Mbps) with no price increase. As long as they continue service uninterrupted through 2017, they offer stands.

General Manager Toby Brummer:

“We wanted to do something for those customers who made that early commitment to RS Fiber. We thought they should be recognized in some special way for their loyalty and support of the cooperative. Future Internet applications will likely require higher speeds and this will set our customers up for broadband success for the foreseeable future.”

It's What They Do

The upgrade to gigabit connectivity for existing subscribers with no increase in price follows the same pattern we’ve seen from other publicly owned networks. Recently, we presented detailed data from municipal networks in Tennessee that showed how rates have changed very little over decades, even though speeds have consistently increased.

Vermont’s ECFiber also recently announced a speed increase at no extra charged for subscribers. They also plan another increase in 2018.

RS Fiber Cooperative has been connecting towns and rural areas in Sibley and Renville County. For more about the cooperative, check out our 2016 case study, RS Fiber: Fertile Fields for New Rural Internet Cooperative. The last four communities to receive services will be connected later in 2017.

Posted July 1, 2017 by lgonzalez

In true publicly owned network fashion, ECFiber in Vermont has increased speeds without raising rates. This is the third such speed increase in four years that did not come with a price increase. Even better, ECFiber plans to do it again next year.

The break down of the changes are:

Basic: Increases from 10 Megabits per second (Mbps) to 17 Mbps

Standard: Increases from 25 Mbps to 40 Mbps

Ultra: Doubles from 100 Mbps to 200 Mbps

Wicked: Goes from 500 Mbps to 700 Mbps

All speeds from ECFiber are symmetrical, so upload and download speeds are the same. Later this year, the organization plans to increase speeds again and the organization will offer a gigabit plan.

Publicly Owned Networks Are Doing It

Municipal networks and regional networks make it a habit to increase speeds with modest or no price increases. We’ve noticed the behavior in several places, but gathered data for eight publicly owned networks in the state of Tennessee to highlight this characteristic.

Check out our Municipal Networks: Speed Increases & Affordable Prices fact sheet.

Expanding While Saving Public Dollars

As we reported in March, the town-owned Communications Union District is expanding and building out in remaining member towns. They are also serving community facilities, such as schools, libraries, and town halls with the fastest speeds available for only $74 per month. Incumbents charge $2,000 per month for the same level of service. In a school, that comes to about $23,000 each year to free up for educational programs, rather than telecommunications costs.

Listen our recent conversation with Carole Monroe and Irv Thomae about the network in episode 251 of the Community Broadband Bits podcast.

Posted June 8, 2017 by lgonzalez

As Newport Utilities (NU) in Tennessee moves forward with a plan to offer Fiber-to-the-Home (FTTH) connectivity, they are holding public informational meetings. At a recent meeting, locals received the plan positively, reinforcing that idea that NU is on the right track.

The network will be funded by a $3.5 million interdepartmental loan from the utility’s electric system in addition to a USDA loan. The first phase of the build out will connect just under 6,800 residential and approximately 1,200 business premises. It will also bring electric substations, the city of Newport, emergency services, and local schools on to the new infrastructure. The second phase will continue to connect remaining NU’s service area.

Why Are THEY Here Anyway?

In recent weeks, anti-muni groups from Knoxville and other areas have targeted the project, raising questions among the community; NU officials wanted to address the misinformation directly. Chair of the board Roland Dykes said:

“There has been alot of publicity, negative and positive in the community and we wanted to do this to make sure everybody understood what we are trying to do, and what broadband will mean for our community.” 

WNPC reported that “virtually all of the attendees were positive about the plan, because many areas of Cocke County are without Internet service.” WNPC also noted that the only unfavorable opinion was from an attendee who refused to answer when asked if he was backed by the cable industry. That individual doesn’t live in Cocke County.

Raising Speeds, Holding Down Rates...A Muni Tradition

A former NU employee who is now with the Morristown Utility Board spoke at the meeting, describing how the publicly owned network attracts businesses to Morristown. In addition to boosting economic development, MUS FiberNet brings fast, affordable, reliable connectivity to residents and businesses in the MUS service area. They started serving premises in 2006 with FTTH and have never raised rates, even though they HAVE...

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Posted June 6, 2017 by lgonzalez

In addition to studying how and where local communities examine the potential for publicly owned Internet networks, we’ve looked at rates over time in select areas of the country. We recently put together a comparison of historical rates for municipal networks in Tennessee. Our findings are consistent with what we’ve seen all over the country - publicly owned networks don't hesitate to raise speeds while keeping rates affordable. We've documented the data on our fact sheet: Municipal Networks: Speed Increases & Affordable Prices.

Not Like The Big Guys

National providers make it a habit to periodically raise rates and over time those increases add up. They’ve done it so often, subscribers have come to expect it on a regular basis. Price increases don’t usually include a speed increase. With no need to appease shareholders, officials in charge of publicly owned networks can set rates at a level that allow a network to be sustainable rather than rates that maximize profits.

Publicly owned networks have increased speeds for subscribers, often with little or no fanfare other than quietly alerting subscribers to their improved service. Places Chattanooga’s EPB, Morristown’s FiberNET, and BET in Bristol are in a much different habit than Comcast or AT&T - they increase speeds with no increase in price. Other Tennessee communities have increased speeds significantly with only slight price increases over years of service.

Speeds, Rates Then And Now

On our fact sheet, we include prices for the basic tiers now and when the network began offering services. We also compare the basic speeds when the network began serving the community and today. The results reflect how publicly owned networks focus on providing fast, affordable connectivity to subscribers rather than collecting profit from customers.

Some results may surprise you:

  • Morristown has never increased prices for their standard speed offering. It’s always been a solid $34.95 each month. The speed has increased to 50 Mbps, an 8 fold increase!
  • Bristol has operated a municipal network since 2008. The standard speed is 5X faster than when the city started building the network. (With no price increase.)
  • Chattanooga has not raised their prices since...
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