At the Institute for Local Self-Reliance, we have been watching the latest developments with Burlington Telecom from afar but with extreme curiosity. We have watched a wonderful local movement grow to Keep Burlington Telecom Local and that fits entirely with our values. 

Because of the challenges from BT's prior mismanagement and court settlement, Burlington's options are limited. The benefits of local ownership are tremendous - from being directly accountable for services to keeping more money in the community. But also the ability to correct problems as they arise. No management is perfect, but local ownership provides the most opportunity to ensure that the network will continue to serve the community, rather than a situation in which the community serves the network. We see the latter far too often in communities stuck with cable monopolies. 

We salute those that have made Keep Burlington Telecom Local a viable option and we continue to hope that BT indeed remain local. But we are concerned that BT may not remain locally controlled. 

In the event that the City Council decides to pick a non-local bidder, we want to offer some observations. We are an organization that shares localism as a strong value and has more than a decade of experience working on broadband policy to best benefit communities. 

We have a long history with Ting (though no financial relationship) but less experience with Schurz Communications. Not only have we extensively documented Ting's partnership with Westminster, Maryland, to build a citywide fiber network, but many of us have been customers of Ting's parent Tucows in various ways. 

In our experience, absentee ownership of broadband networks is concerning, in part, because of a tendency for such a company to cut back on customer service and network investments. Such actions can be financially lucrative in the short term but inconvenient when the owner of the company shops, worships, and/or mingles with those who bear the brunt of such disinvestment. Network owners from afar don't have to worry as much about upsetting their customers from declining standards.

The people of Burlington have proven beyond a doubt that they believe in publicly owned Internet networks. They’ve fought harder than any other community we’ve seen to maintain a voice in the future of their much loved publicly owned fiber optic network, Burlington Telecom (BT). Now after months of ruminating, debating, and examining their options, the future of BT is still uncertain.

The Back Story

We’ve covered BT extensively and dived into both the numerous benefits the community has enjoyed as well as the problems caused by former Mayor Bob Kiss and his administration. Bad choices and a lack of transparency snowballed, leaving the city to contend with sizable debt. Through all the difficulties, residential and business subscribers have consistently praised their hometown publicly owned network and expressed an appreciation for accountability, good service, and BT’s local ownership.

In order to fend off a lawsuit from Citibank, the city of Burlington had to agree to find a buyer for the network. To maximize the funds the city will receive from the transaction, a sale needs to be finalized by early January.

On November 6th, the City Council was scheduled to vote on which entity would be allowed to purchase the network, but that would have been a dull ending to a story filled with drama and, as the fates would have it, that isn’t what happened. At all.

The Kiss Of Debt

The Kiss administration’s choice to hide cost overruns from the public and the City Council led to a $33 million obligation to CitiBank. In 2014, the two reached a settlement after CitiBank decided to sue in 2011 and the parties had haggled in court for three years. As part of the settlement, the community committed to selling BT. In order to obtain the largest share possible of the proceeds from the sale - 50 percent - Burlington must reach an agreement with a buyer by January 2nd, 2018. The longer it takes to find a buyer, the less of the net proceeds the city will retain.

The Latticework podcast invited Elliot Noss, CEO of Tucows - the parent company of Ting - to discuss his work at Tucows and his thoughts on the future. The conversation touches on everything from the idea of post-Democracy to how companies build Fiber-to-the-Home (FTTH) networks.

Noss previously joined us for the Community Broadband Bits Podcast in 2015. In that episode, Chris and Noss discuss Ting's approach to FTTH and wireless networks and how that intersects with community networks. That podcast is available here.

Ting has a public-private-partnership with the city of Westminster, Maryland, and has started projects in a number of other cities including Holly Springs, North Carolina; Centennial, Colorado; and Sandpoint, Idaho. We discuss the Westminster partnership in our 2016 report, Successful Strategies for Broadband Public-Private Partnerships.

Listen below to the Latticework podcast (22 minutes):

This is the transcript for Episode 252 of the Community Broadband Bits podcast. Westminster, Maryland, has developed a public-private partnership with Ting, and Robert Wack the city council president joins the show to discuss how the project is meeting its goals. Listen to this episode here.

Robert Wack: When he brings clients or vendors or just friends into his office, he sits them down at his desk and says, "Watch this." And he shows off his gig like it's his new, shiny, red Corvette.

Lisa Gonzalez: This is episode 252 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. When Christopher was at the Broadband Community's conference in Austin recently, he had the opportunity to check in with Robert Wack, city council president from Westminster, Maryland. Westminster is a town of about 18,000 people that decided the best way to improve local connectivity for schools, businesses, and residents was to invest in publicly-owned fiber and work with a private sector partner. In 2015, they began working with ISP Ting. Robert was the leading voice of the initiative. He gives Chris an update on how things are going in Westminster and the two talk about expectations, realities, plans, and challenges. Robert was on the show way back in 2014 for episode 100, when the project was just getting started. And we've written about Westminster for muninetworks.org as the community network has grown. Be sure to check it out. Now here's Christopher with Robert Wack, city council president from Westminster, Maryland.

Christopher Mitchell: Welcome to the Community Broadband Bits podcast live edition, coming to you live from the Broadband Community Summit with Robert Wack, the city council president from Westminster, Maryland. Welcome back to the show, Robert.

Robert Wack: Thanks, Chris. Glad to be here.

Christopher Mitchell: I'm excited to get an update, because I know that things have been going well. I've been following and I don't think we've talked about this much since maybe we did a podcast talking about the public-private partnership as you were getting it kicked off.

We reported last fall that Ting Internet was considering Centennial, Colorado, as its next Fiber-to-the-Home (FTTH) target area. In preparing for preregistration, they have developed one of their marketing videos that tries to capture the unique flavor of the place they intend to serve.

 Check it out:

In December Centennial, Colorado’s City Council voted to establish Centennial FiberWorks, a program focused on making optimal use of the city’s fiber-optic backbone. In January, they took the next step by creating a Fiber Commission to manage the program.

One Step At At Time

In 2013, voters chose to opt out of Colorado’s restrictive state law SB 152 that prevents municipalities from offering telecommunications services alone or with a partner from the private sector. As in most other local referendums on the opt out question, Centennial overwhelmingly supported reclaiming local authority.

Since then, the community has established a Fiber Master Plan, which includes investing in a 50+ mile publicly owned fiber backbone. Last fall, Ting Internet announced that it had put Centennial on its list of cities where it’s considering offering fiber-optic connectivity. Since then, Ting has been assessing demand from the Centennial community and should decide soon whether or not they intend to bring Fiber-to-the-Home (FTTH) to the city.

Ducks In A Row

Regardless of whether Ting offers residential Internet access, or some other entrants wish to bring services to Centennial, the city now has a commission to manage the use of the network and the future network. According to a recent press release:

Centennial FiberWorks and the Fiber Commission will continue efficient and cost effective planning, construction, operation and management of the City's fiber optic infrastructure. FiberWorks is formed as an operational department of the City and serves as a publicly-owned business operation. The continuing construction, use, maintenance, and extension of the City’s fiber optic infrastructure falls under the purview of FiberWorks. The Commission provides policy direction, management and day-to-day oversight of FiberWorks.

As SB 186 sits patiently in committee, advocates of better broadband from the private and public sectors are banding together to share their thoughts on the bill. They believe that the bill will stifle attempts to improve connectivity throughout the state. In a recent letter to the Chair and members of the the Missouri Senate Local Government and Elections Committee, they laid out the other reasons why SB 186 should not advance.

"Harmful...Stifling...Hampering"

The Coalition for Local Internet Choice (CLIC) organized the letter and signed on with 14 other companies and associations. It wouldn’t be the first time - Missouri is an all too common battle ground in the fight to protect remaining potential for municipal networks and public private partnerships.

They describe the bill as:

“…[H]arming both the public and private sectors, stifling economic growth, preventing the creation or retention of jobs around the State, particularly in rural areas, hampering work-force development, and diminishing the quality of life in Missouri.”

This is the third time in as many years that Missouri State Legislators have tried to push through legislation that would benefit large cable and DSL incumbents. The goal of the bill this year as before is to lock out any possibility of competition now or in the future. Last year, HB 2078 saw some drama when its author tried to slip in the foul language within the text of a public safety bill that had nothing to do with telecommunications. Luckily, sharp advocates were paying attention and had already educated Members who were on the conference committee. Those in favor of local authority stripped out the language and when anti-muni Members tried to amend it into a third bill, the author moved to have it removed under threat of filibuster.

Don't Make A Rough Situation Worse

Missouri already imposes restrictions on municipal networks. In the letter, the signatories refer to local authority as a key in solving Missouri's poor connectivity problems:

Private sector companies, trade organizations, and local authority advocacy groups went on record last week in opposition to HB 2108, a Virginia bill that would severely restrict local communities’ options to improve connectivity. They joined together in a letter to the Chairman of the Virginia House Commerce and Labor Committee, there the bill is now waiting for hearing, Republican Terry J. Kilgore.

Joining Local Communities To Oppose

A number of local governments have already passed resolutions condemning the legislative attack on their right to make local telecommunications decisions and we expect to see more. Del. Kathy Byron, a legislative darling of big cable and DSL providers in Virginia, introduce the bill earlier this month. Local and national media outlets immediately caught the story, and constituents have contacted Byron's office to express their concern. 

This letter from leaders in the industry underscored their concern that potential partners feel the bill is a death knell for public-private partnerships:

It would interfere with the ability of private companies to make timely sales of equipment and services to public broadband providers. It would deny private companies timely access to advanced networks over which they could offer business and residential customers an endless array of modern products and services. It would also impair economic and educational opportunities that contribute to a skilled workforce from which businesses across the state will benefit. 

The authors of the letter find the slow speeds required in the bill especially troubling for rural communities. The bill sets the standards at 10 Megabits per second (Mbps) download and 1 Mbps upload - speeds reminiscent of antiquated DSL:

This is episode 222 of the Community Broadband Bits podcast. Centennial, Colorado's Fiber Director Tim Scott joins the show to discuss conduit policy, dark fiber strategy, and Ting. Listen to this episode here.

Tim Scott: How do we create a more competitive environment and enable new entrants to look at the market and put together products and services, leveraging the city’s backbone that can create this new, competitive, compelling environment in Centennial?

Lisa Gonzalez: This is episode 222 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. In 2013, Centennial, Colorado voters chose overwhelmingly to opt out of the state's law that restricts local telecommunications authority. Since then, they've steadily advanced toward a plan to use their publicly owned fiber to bring better connectivity to the community. Last month, Internet service provider, Ting, announced that it would be partnering with Centennial to bring gigabit Internet service access via the city's publicly owned fiber-optic network. Tim Scott, the city's director of fiber infrastructure, joins Chris today to talk about Centennial's voyage from a new Denver suburb to a city that has the fiber to draw in a growing provider like Ting. He explains what the city has created and how, what providers are looking for, and offers more information about the new partnership. Now here are Chris and Tim Scott, director of fiber infrastructure from the city of Centennial, Colorado.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell. Today I'm speaking with Tim Scott, the director of fiber infrastructure for the city of Centennial, Colorado. Welcome to the show.

Tim Scott: Morning, Chris. Thanks for inviting me.

Christopher Mitchell: I got it right, Tim Scott?

Tim Scott: Yeah, you did. You got it right. Good job.

Christopher Mitchell: The community of Centennial, I've actually been down in that area, in the Denver metro area. Can you tell us a little bit about it?