Tag: "utility"

Posted June 21, 2016 by ternste

This is Part 3 in a four part series about the Click network in Tacoma, Washington, where city leaders spent most of 2015 considering a plan to lease out all operations of this municipal network to a private company. In Part 2, published on June 7, we reviewed the main reasons why Tacoma Public Utilities considered the possibility of leasing out all of the Click operations. On May 31, we published Part 1, which shared the community's plans for the network. Part 3 covers why we believe the Click municipal network is positioned to thrive in the years ahead within the modern telecommunications marketplace.

Part 3: Positioning Click for the Future

If Tacoma leaders decide to move ahead with the “all in” plan that they're currently exploring, several factors suggest that Click can become an increasingly self-sustaining division of Tacoma Public Utilities (TPU). To recap, the “all in” plan would reportedly involve two major changes at Click. One, it would mean upgrading the network to enable gigabit access speeds. Two, the all in option would likely mean cutting out the “middlemen” private companies that currently have exclusive rights to provide Internet and phone services over the network. Instead of the current system, where Click only offers cable TV services while middlemen provide Internet and phone, the new all in plan would position Click as the retail provider for all three services.

Adapting to A Challenging and Changing Telecom Landscape

It makes sense for TPU to keep Click and improve it. TPU’s slide from Part 2 in this series reveals:

(1) Click’s subscriptions for Internet-only customers turned a corner in 2014 and started to exceed projections.  This data indicates that the most important component of Click’s future business prospects—its Internet access service—is growing.

(2) With a proposal on the table to upgrade the infrastructure to offer gigabit speed service, the city can expect Click to provide stronger local ISP competition on both broadband speed and price. In an age of increasing need for data access, any ISP that upgrades its infrastructure should reasonably expect to see increased demand for extremely fast Internet access services, a level of demand that didn’t exist 10 or even 5 years...

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Posted June 16, 2016 by lgonzalez

It’s good for you, it’s good for all of us, and for many people, discussing it is as thrilling as watching paint dry. We’re talking about the principle of network neutrality, if course.

Stephen Colbert has found a new way to share this important issue and he has found a thrilling way to do it - on a roller coaster with Professor Tim Wu!

Check it out!

Posted June 14, 2016 by christopher

Last week, while at my favorite regional broadband conference - Mountain Connect, I was asked to moderate a panel on municipal fiber projects in Colorado. You can watch it via the periscope video stream that was recorded. It was an excellent panel and led to this week's podcast, a discussion with Glenwood Springs Information Systems Director Bob Farmer.

Bob runs the Glenwood Springs Community Broadband Network, which has been operating for more than 10 years. It started with some fiber to anchor institutions and local businesses and a wireless overlay for residential access. Though the network started by offering open access, the city now provides services directly. We discuss the lessons learned.

Bob also discusses what cities should look for in people when staffing up for a community network project and some considerations when deciding who oversees the network. Finally, he shares some of the successes the network has had and what continues to inspire him after so many years of running the network.

Read the transcript from this show here.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 21 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Forget the Whale for the music, licensed using Creative Commons. The song is "I Know Where You've Been."

Posted June 11, 2016 by lgonzalez

Over the past few years, a number of media outlets have spotlighted Chattanooga’s rebirth from “dirtiest city in America” to a high-tech economic development engine. Recently, the BBC World Service produced “Chattanooga - the High Speed City” an episode in its Global Business Podcast series.

Peter Day presents the 27-minute story, described by the BBC as:

Chattanooga has been re-inventing itself for decades. In the late 1960s Walter Cronkite referred to the city as "the dirtiest in America." Since then heavy industry has declined and, to take its place, civic leaders have been on a mission to bring high-tech innovation and enterprise to Chattanooga. In 2010 the city became the first in America to enjoy gig speed internet following an investment of a couple of hundred million dollars from its publicly-owned electricity company, EPB. What economic and psychological benefits have super-fast internet brought to this mid-sized city in Tennessee? Has the investment in speed paid off? 

In the podcast, Day interviews a number of people who describe how access to the fast, affordable, reliable network offered by EPB Fiber Optics has benefitted the community. The story includes interviews with business leaders, artists, entrepreneurs, and others who recount how the community’s Internet infrastructure has influenced their decision to locate in Chattanooga. The Times Free Press covered the BBC podcast in detail and reprinted an excerpt from Mayor Andy Berke:

"The city that I grew up in in the mid 1980s was dying," Berke told the BBC. "We held on to our past for too long. We're not the best at something and that's really important for a community. When you are the best, that changes how you look at things and allows you to take advantage of and utilize your resources. Chattanooga was a community that didn't have a tech community."

You can listen to the podcast on the BBC World Service Global Business website.

Posted June 9, 2016 by Scott

Business and residential electric customers in Bristol, Tennessee are experiencing shorter power outages thanks to recent upgrades to the city’s municipal fiber-optic network. And collectively, that represents annual savings of about $6 million for electric users, according to the CEO of the Bristol Tennessee Essential Services (BTES):

In an opinion piece for the Bristol Herald Courier newspaper, BTES CEO Mike Browder, said a recent upgrade to the electric system, which uses the city’s fiber-optic network, has helped cut power outage time by 35 percent:

“Our goal is less than 60 minutes average outage time per year per customer. In 2015, we exceeded that goal, reducing our outage time to 34 minutes per customer.”

According to BTES' About Us page, customers who lose power can depend on the smart grid to alert the utility to any outages:

Those customers with fiber services to their homes have automatic power outage detection, meaning that they do not need to make a telephone call if their power goes out. In addition, the system provides automatic meter reading and theft detection.

Browder offered this example in his piece:

"BTES recently had an outage that caused half of The Pinnacle, including Bass Pro Shops and Belk, to lose power. Using the fiber optic system, the BTES electric system automatically opened one switch and closed three more in sequence while testing each section of line. All of The Pinnacle had service restored in less than one minute!"

Bristol’s Smart Network

Reducing outage time is among a number of benefits that Bristol's 26,000 residents and its local businesses are enjoying from the city’s municipal fiber network, which it launched in 2005. The city also uses the infrastructure for fast, reliable, affordable connectivity in the community.

...

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Posted June 8, 2016 by htrostle

Now that a judge has legally approved it, Ammon is forging ahead with an innovative approach to financing Internet infrastructure in Idaho.

On May 19th, the city council unanimously voted to create a Local Improvement District (LID). Ammon’s decision has secured a way to finance its open access Fiber-to-the-Home (FTTH) network.

Local Improvement Districts: You're In or You're Out

LIDs have been used for fiber-optic infrastructure in other places, such as New Hampshire and Poulsbo, Washington, but the approach is still not widespread. In Ammon, the city council's action creates a district from five subdivisions, where residents can “opt in” or “opt out” of participation in the FTTH network. The district includes 376 individual properties, and 188 of those property owners have expressed a desire to "opt in" to the benefits, and costs, of the network. Those who have chosen to "opt out" do not use the network, nor do they pay for deployment.

LIDs are specifically designed to take advantage of any boost to local property value -- and studies have linked FTTH with increased local property values. We’ve previously summarized the most common ways communities finance networks, but LIDs are a little different.

  1. The local community creates a “district” to issue improvement bonds. In this case, the district consists of five subdivisions of the city.
  2. Selling those improvement bonds will fund the construction of the local infrastructure project. For Ammon, that’s the open access FTTH network. 
  3. The bonds will then be paid for by an assessment on each of the properties that benefit from the network - only the households that choose...
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Posted June 7, 2016 by christopher

Last month we wrote wrote about the Whip City Fiber Pilot project in Westfield, Massachusetts expanding and this week we interview two people from Westfield Gas & Electric about the effort. Aaron Bean is the Operations Manager and Sean Fitzgerald is the Key Accounts and Customer Service Manager.

We discuss their pilot project, how they structured the services and pricing, and integrated the new telecommunications services into the municipal utility.

We also discuss whether the lack of a television option is limiting interest from potential subscribers and how they are picking the next locations to expand the network.

The sound effect we use in the intro is licensed using creative commons. We found it here.

Read the transcript from this show here.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 18 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Forget the Whale for the music, licensed using Creative Commons. The song is "I Know Where You've Been."

Posted June 7, 2016 by ternste

This is Part 2 in a four part series about the Click network in Tacoma, Washington, where city leaders spent most of 2015 considering a plan to lease out all operations of this municipal network to a private company. Part 2 explores the major reasons why Tacoma Public Utilities has considered the move to lease out all Click operations. Part 1, published on May 31, examines possible plans for Click in the immediate future.

Part 2: TPU’s Challenges with Click

When TPU officials proposed last March to lease the network to a private ISP for 40 years, they cited revenue losses for Click as high as $7.6 million annually, indicated by troubling financial reports in recent years. Some critics, however, such as those with the advocacy group “Stick with Click,” countered that this figure is inaccurate. They say that TPU manufactured the revenue losses through an accounting decision that resulted in a deceptively bleak picture of Click’s financial performance.

To shed light on the disagreement, we're examining relevant facts about Click.

Allocating the Costs of a Shared Infrastructure

When Tacoma first built the Click network in the late 1990s, the Hybrid Fiber Coax (HFC) infrastructure was to support services for two divisions of the TPU: TPU Power and Click. Besides the infrastructure’s function for supporting Click’s services, the city designed the HFC infrastructure to support a smart electrical metering program for TPU Power services.

This dual purpose meant that for accounting purposes, TPU had to allocate the costs of a shared network based how much each division would rely on the network. This cost allocation (a common accounting practice) would assign each division a portion of the original capital construction costs for building the network and a separate portion of the network’s ongoing operations and maintenance (O&M) costs. 

Ultimately, and with the help of an independent consultant, the city settled on cost allocation ratios in 2003, which determined how the TPU would assign capital and O&M costs to each division.

TPU Power would pay 73 percent of the capital costs to build the HFC infrastructure; Click would pay the remaining 27 percent. Click would then pay a 76 percent of the network’s ongoing O&M costs, with TPU Power paying the remaining 24 percent of O&M...

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Posted May 31, 2016 by ternste

This is Part 1 in a four part series about the Click network in Tacoma, Washington, where city leaders spent most of 2015 considering a plan to lease out all operations of this municipal network to a private company. Part 1 explains Tacoma's plans for Click's immediate future.

Part 1: Tacoma Votes to Explore Keeping Click!

2015 was a tense year for Tacoma Click, the nearly 20-year-old municipal network in this city of about 200,000 just south of Seattle. In March of 2015, Tacoma Public Utilities (TPU) announced it was considering a proposal to sign a 40-year agreement to lease out the network to a private Internet Service Provider (ISP). But after months of deliberations, the Tacoma City Council decided in December with a resounding 8-0 vote at the last City Council meeting of the year to explore what the city calls their “all in” option: a plan which, if implemented, would include technological upgrades and major structural changes to the business model aimed at preserving Click as a municipally-owned network.

When Tacoma Click, one of the first municipal networks in the U.S., launched its Hybrid Fiber Cable (HFC) system in 1999, the network provided Internet speeds that were among the fastest in the country. For the past two decades, Tacoma Click has provided community anchor institutions, businesses, and residents in Tacoma with access to retail Cable TV service and wholesale Internet and phone service. 

Click has never managed to pay for itself. However, nothing in Click’s financial reports can account for the municipal network’s numerous indirect contributions (both economic and otherwise) and overall value to the Tacoma community as a whole. There are also promising signs that the network is positioned for future growth.

Taking Sides

The tone of discussions at City Council meetings over the past year about Click’s future signaled a strong desire by some city officials to get out of the telecom business altogether. Before the December vote, two of five TPU board members favored the lease option, a proposal to lease the network that would have effectively marked the end of...

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Posted May 25, 2016 by christopher

In Tennessee, this month marks 10 years of Morristown Utility Systems delivering fiber-optic triple-play service to the community, including great Internet access. But those living just outside the city and in nearby cities have poor access at best. MUS General Manager and CEO Jody Wigington returns to our show this week and we also welcome Appalachian Electric Cooperative (AEC) General Manager Greg Williams to discuss a potential partnership to expand Morristown services to those that want them.

As we have frequently noted, Tennessee law prohibits municipal fiber networks from expanding beyond their electric territories. The FCC decision repealing that favor to the big cable and telephone company lobbyists is currently being appealed. But Tennessee also prohibits electrical co-ops from providing telephone or cable TV service, which makes the business model very difficult in rural areas.

Nonetheless, MUS and AEC have studied how they can team up to use the assets of both to deliver needed services to those outside Morristown. We discuss their plan, survey results, the benefits of working together, and much more.

Read the transcript from this show here.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

This show is 24 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to Forget the Whale...

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