Tag: "utility"

Posted December 11, 2014 by lgonzalez

Muscatine Power & Water (MP&W) announced in late November that it will upgrade its municipal hybrid fiber coaxial (HFC) communications network to an FTTH network. The upgrade will allow Muscatine to offer gigabit speeds. Construction is set to begin in 2016; the FTTH network is scheduled to go live in 2017.

According to the press release, the community hopes to capitalize on the new technology for economic development opportunities, better residential services, and replace an aging system with future proof infrastructure. From the press release [PDF]:

Consideration was also given to two other plans that would have either maintained or incrementally improved the existing HFC system. As stewards of the public trust, the Board of Trustees felt the other options were costly short-term fixes and that FTTH was clearly the superior option.

“Tonight’s decision assures that Muscatine Power and Water will continue to be a leader in telecommunications,” said LoBianco, “the new system will be able meet the bandwidth needs of the community for years to come while reducing maintenance and improving reliability. It ensures that the communications capabilities in Muscatine are as good as in any large city which enjoys the benefits of FTTH technology.”

Muscatine sits in the far southeast corner of the state and is home to approximately 29,000 people. The community established a municipal water utility in 1900, an electric utility in 1922, and its communications utility in 1997. According to the press release, the community was unhappy with the previous incumbent and an overwhelming majority of local voters elected to establish what is now called MachLink. The network offers video and Internet access.

A Muscatine Journal article reporting on a recent meeting of the Board of Water, Electric, and Communications Trustees notes that the project will be funded with an interdepartmental loan, one of the three most common funding mechanisms. (For more on funding municipal networks, check out our fact sheet [PDF].)

The article also...

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Posted December 9, 2014 by lgonzalez

In November, Burlington's City Council approved the much anticipated settlement with Citibank. Burlington Telecom, a nearly citywide gigabit FTTH network owned by the city, was run into the ground by a previous mayor. That Mayor's Administration hid major cost overruns from the public for years, resulting in a challenging situation for the community. In the the world of municipal broadband, this is a significant anomaly.

The City found itself owing CitiBank some $33 million with no clear path on how to pay it. After years of arguing in court, the situation is largely resolved. Early in 2014, Citibank and Burlington reached a settlement [PDF] in which the the city would pay $10.5 million and a share of BT's future value in exchange for Citibank to drop its $33 million lawsuit. The obligation will include funds contributed by the city's codefendant, McNeil, Leddy & Sheahan P.C. law firm.

BT revenues, net cash flow, and the city's insurance carrier will contribute to the city's obligation, but the lion's share will be paid for with bridge financing from a local source. Trey Pecor, a Burlington business owner, has secured funding and created Blue Water LLC. The city will transfer ownership of the network to Blue Water in exchange for $6 million and will continue to lease the network from Blue Water at about $558,500 per year for a maximum period of five years. The goal is to find a partner to purchase the network. At that time, Blue Water and the city will divide any proceeds from the sale. 

As part of the agreement, the City Council and the Vermont Public Service Board (PSB) needed to approve the terms. The PSB is the state entity tasked with regulating utility rates and related financial matters in Vermont. On November 3rd, the PSB approved the transaction unanimously [PDF of the Order].

A Vermont Digger article...

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Posted December 1, 2014 by rebecca

This week in community broadband, more communities are adding broadband to the list of essential utilities, and many of them are turning to Chattanooga as a model “gig city.”

As Times Free Press’s Dave Flessner reports, the great thing about Chattanooga's approach is that it’s not just about Internet. In fact, the broadband boom is really an unintended benefit of the city’s cutting edge smart grid, which keeps the city’s lights on and powers the economy as well. 

"What we're going to try to do is bring some of the brilliant people from Warner Bros., Fox, Disney and IBM down here to Chattanooga to help them get their heads wrapped around this notion that you've got to stop worrying about scarcity," [Annenberg Innovation Lab director Jonathan] Taplan said.

Last year, T-Bone Burnett, a Grammy Award winner, performed "The Wild Side of Life" from a Los Angeles studio with Chuck Mead, a founder of the band BR549 who was on stage in Chattanooga.

"They sang a song together over 2,000 miles apart," Taplin said. "That's the power of gigabit Internet. I think we're just beginning to think of the possibilities of what this thing can do."

And Android Authority’s William Neilson Jr. explores the desire for faster connections and more choices.

“Isn’t it amazing how much faster broadband speeds are in parts of the country where there are a number of broadband options available to residents? How many times am I going to write an article detailing a broadband provider telling a city that they don’t need “fast” speeds even though the city is universally angry at their lack of broadband options?”

Of course, we see the product of how increased competition brings better service even more clearly in communities that have municipal networks, not just in Google's Kansas City network. It is an outcome that all communities can achieve if they regain the authority to do so. 

In the beginning, Lafayette, Louisiana created its own utility system. And it was good. Steve Stackhouse Kaelble goes back to the very beginning of...

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Posted November 28, 2014 by lgonzalez

If you live in Sebewaing, you can now purchase FTTH connectivity from Sebewaing Light and Water (SLW) via their municipal network. Earlier this week, we discussed the network with Sebewaing Light and Water Superindendent Melanie McCoy.

The first village in Michigan to offer gigabit service issued its RFP in summer 2013. Like many other small communities, the 1,700 inhabitants in Sebewaing were limited to dial-up. T1 service (1.5 Mbps)  was available to businesses but lines cost from $1,000 - $1,500.

Commercial connectivity via the new infrastructure now begins at $75 for symmetrical 50 Mbps service. SLW also offers symmetrical 100 Mbps for $130 and advertises customized packages if those options are not adequate. SLW will also waive the $125 installation fee if a business signs up before the end of the year.

Residents also receive free standard installation if they sign up before the end of 2014. They can pay as little as $35 per month for symmetrical 30 Mbps service, $55 per month for 50 Mbps symmetrical, or $105 per month for 100 Mbps symmetrical service. 1 Gbps/100 Mbps service costs $160 per month.

SLW has already signed up a commercial gig customer. The Bay Shore Methodist Camp & Family Ministries holds events that often cater to hundreds of children and adults. They need a high capacity connection for Wi-Fi to serve a large number of devices.

Sebewaing's original plan was to build an open access network but after careful consideration and legal analysis, it decided to provide retail services. SLW purchases bandwidth only from Air Advantage, a wireless provider specializing in the "thumb" of Michigan. The utility also offers voice services via the network.

According to a September Tuscola County Advertiser article, customers were signing up for service as SLW was finishing deployment. We checked in with Melanie...

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Posted November 25, 2014 by lgonzalez

The City Council of the city of Commerce is considering using its existing fiber resources to offer connectivity to local businesses. At a November 3rd work session, Council members reviewed the plan and, according to the Main Street News, members voiced support for the idea.

“We’ve been actively working on this for months,” [City Manager Pete] Pyrzenski told the council. “We’ve been counseled on, we’ve talked through the options… this is a pretty viable utility for Commerce.” 

“We are ready to pull the fiber,” Pyrzenski declared. “Our role is to supply the fiber. We’re not going to get into cable TV, not going to get into telephone, just high-speed Internet.”

“Businesses have been looking for an alternative,” noted Mayor Clark Hill.

Windstream now serves the community of 6,500 but there have been significant complaints and there are no other options in this north Georgia town.

The city will need to invest $70,000 for equipment and legal fees. The network plan will use an existing line and will run additional fiber to expand the reach to more commercial customers. At this point, the city estimates a 5 - 10 year payback but that period may be reduced if local businesses respond positively. The city will fund the deployment with an interdepartmental loan from their municipal electric utility. Commerce also owns a municipal gas utility.

Posted November 17, 2014 by tanderson

One of the earliest and largest community fiber-to-the-home networks in the nation is about to get an upgrade. Jackson Energy Authority (JEA), a public utility in Western Tennessee, has announced that all 18,000 of its subscribers will be able to receive symmetrical gigabit services within three years, with the first upgraded connections expected to come online in early 2015. The pricing for a gigabit connection is not yet finalized, but will be under $100 per month according to Senior VP of Telecommunications Ben Lovin. 

JEA built out its FTTH network way back in 2003, when DSL was still considered fast and iPods and cellphones were just beginning to find their way into most people’s pockets. At a cost of $54 million, the network was funded mostly through revenue bonds. It has offered triple play services (voice, internet, and television) for ten years, achieving take rates of up to 70%

Because of the age of its equipment, to enable the gigabit upgrade JEA will have to replace the optical network terminal (ONT) at each premises - the point where the network fiber connects to the actual house or building. JEA will also have to replace some of the network equipment in its central offices. The total cost is expected to fall between $8-10 million. Unlike the original network build out in 2003, however, the upgrade will be funded through regular cash flow and will not require borrowing. 

JEA provides all utility services under one umbrella in the city of Jackson: water, heat, electricity, and telecommunications. Its investment in ubiquitous fiber has allowed it to implement smart grid technology, managing outages and power flows more securely and efficiently. 

Jackson, Tennessee is also a member of Next Century Cities, the collaborative effort between communities and elected leaders across the country to share informational resources and promote fast, affordable, and reliable Internet access.

Posted October 30, 2014 by lgonzalez

Chanute's City Commission passed a motion this month to fund its planned FTTH project with revenue bonds, bringing the entire community closer to fast, affordable, reliable connectivity, reports the Chanute Tribune

In addition to authorizing a plan to secure $18.9 million in revenue bonds, the motion also included funds for a pre-deployment baseline analysis focused on economic development and funds to hire an attorney. The bonds include debt service reserve funds and additional funding to make early interest payments. The plan determines the city will pay off the investment in a little over 14 years, based on a 45 percent take rate.

The Kansas Corporation Commission (KCC) must approve the plan. The KCC is a state regulatory body with a variety of responsibilities, including regulating telecommunications utility rates. The KCC also handles rates for electricity, natural gas, and liquid pipeline services. They handle safety issues, licensing, energy conservation, etc. If the KCC does approve the plan, the bonds can be secured without a public vote unless the city receives any petitions. Chanute still plans on providing residential gig service for $40 per month.

According to the Tribune, 62 percent of 1,030 returned surveys indicated yes or maybe as to whether or not they would be interested in signing up for high-speed service at home or at work; 38 percent said no. City officials are optimistic that the project will blossom even beyond those figures:

“I think once it starts rolling out, a lot of people will see what type of services they’re getting through the city,” [Mayor Greg] Woodyard said, “and they’ll get those bundle packages and we’ll be able to offer them a better product than they’re currently getting at a cheaper price. I think more people will sign up for it in that point in time.”

Woodyard also noted that Chanute is setting an example for other Kansans suffering from poor connectivity:

“A lot of other communities are looking at starting to do this, possibly,” Woodyard said. “We are the trendsetters for the state of Kansas. Everybody’s looking at us to see how we go through the process of doing the fiber project.”

...
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Posted October 27, 2014 by rebecca

On this week’s community broadband media roundup, we have more reverberations from Next Century Cities, a forward-thinking coalition of cities that promises real progress in establishing or restoring local authority for broadband networks. For the inside scoop on the launch, we suggest taking a look at Ann L. Kim’s Friday Q&A with Deb Socia, the executive director of the organization. 

Here’s an excerpt: 

Q: So when you say you work with cities that are either looking to get next generation broadband or already have it, what does that entail?

A: …We are working with elected officials and also employees, like CIOs and city managers and so forth, and the goal is to really help them figure out their pathway. This is pretty hard work and we recognize that there’s always a local context and so we don’t advocate any one way to do this work, but we help cities think about it.

So [are] you gonna work with an incumbent provider, are you gonna build your own, are you gonna work with a private non-profit? How are you gonna make it happen? What are the alternatives for you? And how can we best support you?

Multichannel’s Jeff Baumgartner covered the launch in Santa Monica as well. The bipartisan coalition offers members collaboration opportunities and support for those communities that face incumbent pressure when they announce plans to move forward with publicly-owned broadband programs. According to China Topix’s David Curry, neither Comcast nor Time Warner Cable have made announcements about gig networks, “with Time Warner Cable even go as far as saying "customers don't want 1Gbps Internet speeds", a statement ridiculed on the Web.”  

Rest assured, there will be much more coverage on this organization’s work in the weeks to come. 

San Francisco is catching on to the “Dig Once” strategy, an idea that is known to help...

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Posted July 29, 2014 by christopher

If you have doubts that we can or will connect rural America with high quality Internet connections, listen to our show today. Alyssa Clemsen-Roberts, the Industry Affairs Manager at the Utilities Telecom Council, joins me to talk about how utilities are investing in the Internet connections that their communities need.

Many of these utilities are providing great connections, meaning that some of the folks living in rural America have better -- faster and more affordable -- Internet access than residents of San Francisco and New York City.

We discuss the demand for better Internet access and the incredible take rates resulting from investment in some of the communities that rural electric cooperatives are serving.

UTC has a been a strong ally of our efforts to prevent states from revoking local authority to build community networks. Within UTC, the Rural Broadband Council is an independent operating unit.

Read a transcript of this show, courtesy of Jeff Hoel.

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 17 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."

Posted June 30, 2014 by lgonzalez

Boulder's City Council is considering November ballot question to restore local authority for municipal telecommunications services. The measure, if passed, will create an exemption to the 2005 Colorado law allowing Boulder to better use its existing fiber optic infrastructure.

Apparently, the Boulder community has a self-reliant streak. This is not the first time the Institute for Local Self-Reliance has reported on the community of 97,000. John Farrell, Director of the Democratic Energy initiative, has followed the grassroots campaign to establish a city-owned electric utility in Boulder.

The Daily Camera reports that City Council staff, in a memo to Members, recommend the community seek authority to make use of existing assets. The City owns an extensive network of conduit that it began developing in the 1990s. Boulder has aggressively expanded the network, leasing it to private partners and using the space for a fiber I-Net to connect over 50 municipal facilities.

The Boulder Research and Administration Network (BRAN) serves the City, the University of Colorado, the U.S. Department of Commerce, and the University Corporation for Atmospheric Research. Each of the four entities shared equally in funding the $1.2 million eleven mile network. Boulder is an administering partner for BRAN and hopes to capitalize on that relationship even further.

Approximately 10% of Boulder's residents have home-based businesses, reports City Council staff. The community ranks high in the concentration of software engineers, innovators, and scientists. Businesses with less than 100 employees comprise 97% of firms in Boulder. Local surveys indicate the business community is hungry for better services. From the Daily Camera article:

[Director of Information Technology Don] Ingle said the city has no concrete plans in place to pursue partners, but he believes there will be a lot of interest if Boulder can get the authority.

"The broadband capacity currently offered by the private sector is not large enough," he said. "Given all the business innovation...

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