Tag: "report"

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 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 November 28, 2017 by lgonzalez

Rural communities across the United States are already building the Internet infrastructure of the future. Using a 20th century model, rural America is finding a way to tap into high-speed Internet service: electric and telephone cooperatives are bringing next-generation, Fiber-to-the-Home (FTTH) networks to their service territories. This policy brief provides an overview of the work that cooperatives have already done, including a map of the cooperatives' fiber service territories. We also offer recommendations on ways to help cooperatives continue their important strides.

Download the policy brief, Cooperatives Fiberize Rural America: A Trusted Model For The Internet Era here.

An updated version of this policy brief was released in June 2019. Download the updated version here.

Both versions of the report can be accessed from the Reports Archive Page for this report.

Key Facts & Figures

Farmers first created utility cooperatives because large private companies did not recognize the importance of connecting rural America to electricity or telephone service. Now, these cooperatives are building fiber infrastructure.

Almost all of the 260 telephone cooperatives and 60 electric cooperatives are involved in fiber network projects. As of June 2016, 87 cooperatives offer residential gigabit service (1,000 Mbps) to their members.

Rural cooperatives rely on more than 100 years of experience. The cooperative approach does not stop with rolling out rural infrastructure, but ensures that their services remain viable and affordable. 

The majority of Montana and North Dakota already have FTTH Internet access, thanks to rural cooperatives. Even one of the poorest counties in the country (Jackson County, Kentucky) has FTTH through a telephone cooperative.

AT&T receives about $427 million each year in rural subsidies to bring Internet service to rural America, but AT&T does not invest in rural fiber networks

Moving Forward

Our policy...

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Posted October 5, 2017 by lgonzalez

As Ammon, Idaho, celebrated the official launch of its publicly owned open access network on October 5th, 2017, the folks from Harvard University’s Digital Access to Scholarship at Harvard (DASH), shared Ammon’s story in their new report. Enabling Competition and Innovation on a City Fiber Network, by Paddy Leerssen and David Talbot provides the details of the community’s pioneering network that uses technology to increase competition for the benefit of citizens.

The report explains Ammon’s “Network Virtualization” strategy and how they accomplish it with software-defined networking (SDN) and networking function virtualization (NFV). The results reduce costs and allow users to take advantage of more specialized services, including allowing them to easily switch between Internet service providers. The environment encourages ISPs to take extra steps to please their subscribers.

Leerssen and Talbot also take the time to explain the network’s evolution from classic I-Net to groundbreaking Fiber-to-the-Home (FTTH). Information in the report includes detail about pricing, and how the city determines the cost for connectivity to property owners. Readers can also learn about the ways users are taking virtualization to the next level by creating their own private networks.

Readers can learn how the Ammon Model has changed prior conceptions of municipal networks because the community needed and wanted a new approach. While Idaho is not one of the states where legal barriers discourage municipal Internet networks, the authors address how some state laws have effectively crippled local attempts to improve connectivity.

Key Findings from the report:

Ammon’s network initially served government and business users. Construction of a residential network—paid for by a property assessment equal to $17 monthly for 20 years—began in September of 2016. As of August 2017 it had 145 residential customers, with more than 270 homes expected to be connected by November 2017 in the first connected neighborhood. 

The city charges users a $16.50 monthly utility fee for a fast data connection to the city network. Users then choose from Internet service providers (ISPs) via an online dashboard for access to the wider Internet or specialized services. To make this possible, the city uses network virtualization...

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Posted September 1, 2017 by lgonzalez

Large, corporate providers like AT&T have to make shareholders happy, which is why they shy way from investing in regions where they don’t expect much profit. Routinely, those areas include sparsely populated rural communities and urban neighborhoods traditionally considered low-income. Often low-income neighborhoods also include a high percentage of people of color. Attorney Daryl Parks of ParksCrump, LLC, recently filed suit with the FCC on behalf of three residents in Cleveland who are victims of AT&T's "digital redlining."

The Data Tells The Story

In March, the National Digital Inclusion Alliance (NDIA) and Connect Your Community (CYC) released a report on digital redlining in low-income neighborhoods in Cleveland. “Digital redlining” refers to AT&T’s investments in infrastructure, which improve connectivity in areas where they serve, except for neighborhoods with high poverty rates. CYC and NDIA analyzed form 477 data submitted by the telecommunications company and noticed a pattern. The revelations in that report helped the plaintiffs understand their situation and choose to ask the FCC to look deeper into AT&T's questionable business practices.

The event that inspired the analysis was the AT&T DirecTV merger. As part of the merger, AT&T agreed to create a low-cost Internet access program for customers under a certain income level. The speed tier was only 3 Megabits per second (Mbps) download, but AT&T infrastructure investment in Cleveland lower income neighborhoods was so outdated, residents could not obtain those minimal speeds. As a result, they were deemed ineligible for the program.

The Case

The complainants are three African-American residents in Cleveland’s lower income neighborhoods who can’t take advantage of the affordable program mandated by the merger because they can only access speeds of up to 1.5 Mbps download or less. Without the infrastructure to connect at higher capacity, they’ve ended up paying higher rates for slower Internet access.

In a press release on the complaint, Parks stated:

As a result of the ineffectual and substandard quality level of speed, the women’s [residents’] children cannot...

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Posted June 1, 2017 by lgonzalez

For the second week in row, our staff has felt compelled to address a misleading report about municipal networks. In order to correct the errors and incorrect assumptions in yet another anti-muni publication, we’ve worked with Next Century Cities to publish Correcting Community Fiber Fallacies: Yoo Discredits U Penn, Not Municipal Networks.

Skewed Data = Skewed Results

Professor Christopher S. Yoo and Timothy Pfenninger from the Center for Technology, Innovation and Competition (CTIC) at the University of Pennsylvania Law School recently released "Municipal Fiber in the United States: An Empirical Assessment of Financial Performance." The report attempts to analyze the financial future of several citywide Fiber-to-the-Home (FTTH) municipal networks in the U.S. by applying a Net Present Value (NPV) calculation approach. They applied their method to some well-known networks, including Chattanooga's EPB Fiber Optics; Greenlight in Wilson, North Carolina; and Lafayette, Louisiana's LUS Fiber. Unfortunately, their initial data was flawed and incomplete, which yielded a report fraught with credibility issues.

So Many Problems 

In addition to compromising data validity, the authors of the study didn’t consider the wider context of municipal networks, which goes beyond the purpose of NPV, which is determining the promise of a financial investment.

Some of the more expansive problems with this report (from our Executive Summary):

  • They erred in claiming Wilson, Lafayette, and Chattanooga have balloon payments at the end of the term. They have corrected that error in a press release. Other errors, such as confusing the technologies used by at least two networks, are less important but decrease the study’s credibility.
  • Several of the cities dispute the accuracy of the numbers used in the calculations for their communities.
  • The Net Present Value calculation is inappropriate in this context for...
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Posted May 26, 2017 by Nick

S&P Global Market Intelligence - May 26, 2017

Hard Data on Municipal Broadband Networks

Written by Sarah Barry James

There is a dearth of good data around municipal broadband networks, and the data that is available raises some tough questions.

A new study from University of Pennsylvania Law School Professor Christopher Yoo and co-author Timothy Pfenninger, a law student, identified 88 municipal fiber projects across the country, 20 of which report the financial results of their broadband operations separately from the results of their electric power operations. Municipal broadband networks are owned and operated by localities, often in connection with the local utility.

...

Yet Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, argued that Yoo's study did not present an entirely accurate or up-to-date picture of U.S. municipal networks.

"When I looked at the 20 communities that he studied — and his methodology for picking those is totally reasonable and he did not cherry pick them — I was not surprised at his results because many of those networks are either in very small communities … and the others were often in the early years of a buildout during a period of deep recession," Mitchell said.

As an example, Mitchell pointed to Electric Power Board's municipal broadband network in Chattanooga, Tenn. — one of the five networks Yoo identified as having positive cash flow but at such a low level that it would take more than 100 years to recover project costs.

...

In fact, without the revenue generated by the fiber-optics business, EPB estimated it would have had to raise electric rates by 7% this year.

According to Mitchell, Yoo's study captured the Chattanooga network when it was still "small and growing," but misses "what's going to happen for the rest of the life of the network, which I think is the more important part."

...

Read the...

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Posted May 25, 2017 by Nick

Telecompetitor - May 25, 2017

Municipal broadband networks do not have a strong financial track record, according to an analysis conducted by the University of Pennsylvania’s Center for Technology, Innovation and Competition. The municipal broadband financial analysis, which looked at 20 municipal fiber projects, found that only nine were cash-flow positive and that of those, seven would need more than 60 years to break even.

...

An Opposing View

Municipal network advocate Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, pointed to several flaws in the Penn Law municipal broadband financial analysis.

He noted, for example that a substantial portion of the 20 networks studied were “early in the process and very small.” He also argued that the 2010-2014 study period may have biased the results, as that period included a recession and subscribership for some of the networks has increased substantially since 2014. He noted, for example, that EPB’s broadband network in Chattanooga had about 50,000 to 55,000 subscribers in 2014 but has now hit the 90,000 mark.

The Penn Law authors’ approach was “not the proper way to measure these networks,” said Mitchell in a phone call with Telecompetitor. The analysis “doesn’t take into account jobs created or the impact on the municipal budget,” he said.

He argued, for example, that a municipality that previously paid $1 million annually for connectivity might instead pay itself $500,000 for connectivity on the municipal network.

...

Read the full story here.

Posted May 24, 2017 by lgonzalez

Usually, we ignore the misinformation released by the Taxpayers Protection Alliance (TPA) but their latest efforts are so shady, we felt it was our responsibility to shine a light on its lack of validity and the organization's credibility. Our report, Correcting Community Fiber Fallacies: Taxpayers Protection Alliance Edition, takes a deeper look at the TAP's most recent attempt, which is filled with errors and a blatant disregard for the truth.

What Is A "Boondoggle" Anyway? This Map!

When we looked deeper, we discovered that TPA’s "Broadband Boondoggles: A Map of Failed Taxpayer-Funded Networks" is more misinformation than map. 

All of the basic errors in the map display a lack of attention to detail; our short report examines the deceitful characteristics of this resource. Our purpose in publishing this report is to caution community leaders and citizens who are investigating publicly owned infrastructure; the TPA is not a credible source.

TPA-sandyUtah.png

One of the more obvious errors: Sandy, Oregon, appears in Utah.

The map is also visually deceiving because it includes 213 communities, but only provides information for 87. Of the 213 on the map, the TPA only label 14 as "failures," which means less than 10 percent of the networks they document fit their own definition of "failure."

Clearly, TPA has proven that it seeks to spread any and all information it can find to discredit municipal networks, regardless of accuracy. Communities, public officials, or staff that research the option of publicly owned networks should review our report if they have ever considered the data in the Boondoggles Map.

Consider the Source

If your community is seeking better connectivity, thorough research will be the foundation of how you proceed. As part of your research, be sure to review the organizations that offer information.

From our report:

This brief report does not claim all municipal networks are successes. Municipal networks are challenging in the best of circumstances and local governments must perform due diligence...

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Posted March 20, 2017 by lgonzalez

A new case study recently released by the Berkman Klein Center for Internet & Society at Harvard University describes how the community of Concord, Massachusetts deployed its extensive municipal fiber-optic network and smart grid. In Citizens Take Charge: Concord, Massachusetts, Builds a Fiber Network, the authors offer history, and describe the benefits to the community from better connectivity and enhanced electric efficiencies.

 

 

Key Findings from the report:

  • In 2009 Concord Municipal Light Plant (CMLP) started work on a 100-mile fiber optic and wireless network to provide backhaul for a smart grid. The fiber passes 95 percent of homes and businesses in town. 
  • The $3.9 million project was paid for by electric ratepayers through annual payments that started at $418,000 per year and will decline to $207,000 in the 15th and final year of payments. The fiber will last for at least 30 years. 
  • In a second step, CMLP established a telecommunications division, called Concord Light Broadband, and borrowed $600,000 to fund startup costs of an Internet access business and fiber connections to customers. 
  • CMLP offers residential data plans of up to 200 Mbps, upload and download, for $89 monthly with a two-year agreement. CMLP competes with Comcast. CMLP doesn’t offer phone or video, but does provide much faster data upload speeds than does Comcast. 
  • The project is still being built: at the end of 2016, Concord Light Broadband served about 750 customers (a “take rate” of about 12 percent of the 6,000 customers CMLP estimates could take service) and earned 2016 revenue of $560,000, slightly less than operating costs of $583,000. (In 2016 the division also paid debt service of $60,000, including a $50,000 payment on principal.)
  • CMLP’s fiber helped the town save $108,000 in annual police and school communications costs and generated $88,000 in leasing revenue from a private school and two telecom companies. 
  • CMLP is only in the early stages of realizing the benefits of its fiber. The utility is now engaged in studies on how to use the infrastructure to realize more cost savings, increase revenue, provide new services, and reduce emissions in the coming decades.
  • David Talbot, one of the report authors, also recently...
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