Tag: "union district"

Central Vermont Communities To Consider Regional Fiber Initiative

Posted February 27, 2018 by lgonzalez

Thirteen communities in central Vermont will ask residents if they want to authorize a communications union district, the first step toward a regional publicly owned Fiber-to-the-Home (FTTH) network.

Which Towns Will Participate?

On March 6th, towns in Vermont will participate in Town Meeting Day 2018 when they’ll gather and decide a range of issues such as how to spend town funds, which policies to implement, and other choices that effect the entire community. For the past year, Berlin board member and computer science professor Jeremy Hansen has approached town officials from nearby communities to discuss the possibility of developing a regional network.

As an elected official, his constituents have made him aware of poor Internet access in central Vermont. Currently, much of the area relies on DSL from Fairpoint with maximum speeds of 10 Megabits per second (Mbps) download and 1 Mbps upload, a far cry from the 25/3 FCC standard that defines broadband. There are also residents in the area that still use dial-up Internet access.

Local Jerry Diamantides, who works remotely for a company located in Virginia told Vermont Public Radio:

"It is DSL," Diamantides explains. "The ‘S’ certainly stands for slow. The ‘L’ must stand for low. And we’ll let the ‘D’ stand on its own, I guess. But, it’s barely sufficient for what I need."

Inspired By ECFiber

Hansen wants to improve connectivity in the region by establishing a communications union district, which is the model EC Fiber uses. The designation is much like a sewer or water utility, but focuses on delivering Internet access. EC Fiber began with a different model that relied on private investment, but when the state established the communications utility district designation, it was then able to seek financing from a range of other sources. That funding was critical to allow the network to expand, serve more subscribers, and continue to grow.

As he’s presented his proposal to elected...

Expansion Ahead For ECFiber

Posted April 26, 2016 by ternste

The East Central Vermont Community Fiber-Optic Network (ECFiber), a 235-mile Fiber-to-the-Home (FTTH) network that currently connects over 1,200 customers across 24 small towns in east central Vermont, is doing well. It’s doing so well, in fact, that a capital investment group will commit $9 million in long-term financing to the network, a loan that will allow ECFiber to expand and spend down some of its existing debt.

ECFiber announced last month, that it will use about half of the funds to activate 110 miles of existing fiber this year and add 250 more miles of fiber in 2017 bringing the network to approximately 600 miles. Network officials will use the remaining funds to pay down $7 million in debt; the move will allow ECFiber to save money through reduced interest rates and spread out loan payments over a longer period of time.

Stability Begets New Financing, New Possibilities

The news of this new injection of debt financing comes several years after the original plan to build a larger 1,900-mile, $90 million FTTH network ultimately didn’t materialize in the aftermath of the financial crisis of 2008. When ECFiber failed to secure debt financing for that larger plan, the network scaled back its ambitions, turning to direct investments and raising $7 million from 479 local investors to construct the current network.

This self-financing strategy (for more, listen to our Chris interview Carole Monroe, former General Manager in Community Broadband Bits podcast #177) made ECFiber a reality. This new financing will allow the network to expand at a faster pace and allows ECFiber to significantly stretch its footprint. In the past, the crowd funding approach allowed for targeted, smaller expansions.

The network became eligible for the new debt financing after ECFiber officials took proactive steps in recent years to demonstrate the...

New Vermont Law Bolsters Prospects for Investing in Community Broadband Networks

Posted January 6, 2016 by Scott

A new state law is on the books in Vermont that supporters expect will encourage more investor activity supporting community broadband networks.

The new law, which took effect this past June, allows for the creation of “communications union districts,” enabling towns and cities to band together to form geographic entities dedicated to establishing fiber-optic broadband networks for their area’s residents and businesses.

A New Nomenclature

While Vermont towns have been able to work cooperatively via inter-local contracts, the new law is less cumbersome and uses a governmental nomenclature more familiar to most people—the union district. The union district governance model has been used for many years throughout Vermont, including by various utilities that have multi-town operations to handle, for example, sewer and water service.

Carole Monroe; general manager of the East Central Vermont Community Fiber-Optic Network (ECFiber), a consortium of 24 Vermont communities that have banded together to provide broadband service; told our Christopher Mitchell there isn’t much practical difference for her group operating now as the East Central Vermont Telecommunications District instead of by an inter-local contract.

“But I can say that in the municipal investment markets, they’re much more familiar with the municipal utility district, whether it’s a water district or sewer district or something along those lines,” Monroe told Chris in a recent edition of Community Broadband Bits podcast. “A municipal utility district is a common language for them. Inter-local contracts, not so much.”

ECFiber Grew From Inter-Local Contract

Irvin Thomae, chairman of the EC Vermont Telecommunications District board, agreed. He noted that seven years ago the east central Vermont communities created ECFiber through an inter-local contract. “But this (the inter-local contract) was unfamiliar to investors beyond our state borders,” Thomae told us.

“We needed a structure more capable of being recognized by large institutional investors. It (the communications union district) makes it easier for community broadband networks to appeal more for large investors.”

Jerry Ward, an ECFiber delegate from Randolph Center, earlier in 2015...