Tag: "muni"

Posted November 18, 2010 by christopher

Yet another town has decided to take responsibility for their broadband future: a small Florida community has secured financing and is moving forward with their publicly owned FTTH network.

The City Council voted unanimously Monday night to approve the $7.3 million in funding with Regions Bank in Orlando. City Manager Lisa Algiere told the council members the city would be doing most of its business with the local Regions Bank.

The funding will come in the form of three bonds: a series 2010A Bond, which is good for 20 years and has an interest rate of 3.61 percent; the second bond is a Series 2010B Bond and is for five years with an annual interest rate of 3.20 percent; while the third bond is a Series 2010C Bond and is good for one year. The funding secured by the city is a drawdown loan, meaning it will only take what it needs and only repay that portion.

The network has been branded Greenlight (though the website is not yet fully functional). Greenlight is also the name used by the Community Fiber Network in Wilson, North Carolina.

Light Reading interviewed a network employee, shedding more details than have been released elsewhere.

He says they are passing 7,000 premises, but Wikipedia only notes a population of 2,000 in 2004, so there is more than meets the eye at first glance. They financed the network without using general obligation bonds, working with a nearby bank (Regions is a big bank, headquartered out of state).

Local competitors are AT&T and Comcast, though both offer extremely slow services; the fastest downstream speed available from Comcast is 6Mbps. The new network, as do nearly all recent community fiber networks, will offer much faster connections, the slowest being 10Mbps.

This is a good sign that communities in Florida can still move forward despite the many...

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Posted November 9, 2010 by christopher

As we wrote last week, Salisbury's Fibrant -- the newest community fiber network in the country -- launched last week and immediately saw Time Warner Cable respond with an upgrade to its cable plant that allowed it start advertising even faster speeds - a 50/5 tier of broadband (whether they actually deliver that to anyone, I doubt and will wait to see).

Fibrant was "only" advertising (and delivering) 15/15 and 25/25 speeds, so some suggested that TWC had taken the top honors away... though for people who know much about telecom technology, most of us will gladly take a 25/25 on fiber-optics over a supposed 50/5 on an old, unreliable coax network.

Nonetheless, Fibrant didn't break a sweat, and announced that they were already offering a 50/50 plan though they did not advertise it. I'm not sure why it was not advertised -- though if the reason was to hold a trump card ready in response to TWC's gimmicks, it was a smart move. And Fibrant's 50/50 plan at $85 is cheaper than TWC's 50/5 plan.

Though community fiber networks consistently offer better experiences and lower costs, the big incumbent providers are well versed in gimmicks -- communities must keep that in mind as they plan their own networks. This may mean creating higher tiers of service that many only interest a select few, if that, to remind the populace of the technical superiority of the public network.

Salisbury has since announced that both 100/100 and 200/200 plans are in the works from their network. A 200/200 will be the fastest plan in North Carolina -- though one wonders how the results of the election will impact the future of community fiber networks in the state. Unable to beat community fiber networks in the market, TWC has repeatedly pushed for crippling laws against communities that would dare create competition against TWC. After the 2010 election, North Carolina has a more conservative state government that may find TWC's lobbying more persuasive.

In the meantime, TWC is yet again increasing rates to subscribers, as noted by Stop the Cap!. We'll see if Fibrant is able to shield the community from future rate increases as...

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Posted November 6, 2010 by christopher

Outside Plant Magazine has reprinted some of my "Breaking the Broadband Monopoly" report with a focus and updated numbers on the Chattanooga EPBFi network.

Across the country, hundreds of local governments, public power utilities, non-profits, and cooperatives have built successful and sometimes pioneering telecommunication networks that put community needs first.

These communities are following in the footsteps of the publicly owned power networks put in place a century before. We watch history repeat itself as these new networks are actively being built across the country.

Cities like Lafayette, Louisiana, and Monticello, Minnesota, offer the fastest speeds at the lowest rates in the entire country. Kutztown’s network in Pennsylvania has saved the community millions of dollars. Oklahoma City’s massive wireless mesh has helped modernize its municipal agencies. Cities in Utah have created a true broadband market with many independent service providers competing for subscribers. From Washington, DC, to Santa Monica, California, communities have connected schools and municipal facilities, radically increasing broadband capacity without increasing telecom budgets.

Posted November 3, 2010 by christopher

Wilson's Greenlight community fiber network is ahead of schedule. They continue to operate ahead of the business plan, despite a few difficulties that offer lessons to up and coming community networks.

We recently covered the fallout from their application to the broadband stimulus program where they had to disclose network information to their competitors.

Fortunately, that was not the only news last month from North Carolina's first all-fiber citywide network. They also surpassed 5000 subscribers and remain 6-9 months ahead of their business plan in take rate, according to the Wilson Times.

The number of customers is expected to reach 5,300 by the end of the fiscal year if the current trend continues, according to Dathan Shows, assistant city manager for Broadband and Technical Services. The city's current business plan calls for Greenlight to reach 5,000 customers by the end of the third full year of operation, which will be June 2011.

This is not the first time the network has exceeded projections; the network was built faster than expected and quickly jumped out ahead of take rate expectations.

One of the reasons Greenlight may be growing is its attention to local needs, as illustrated by the network finding a way to televise local football matches that otherwise would not have been available.

However, the Wilson Times story goes into much greater detail regarding the competition from Time Warner Cable. As we regularly see, Time Warner Cable is engaging in what appears to be predatory pricing to retain customers and starve Greenlight of new subscribers.

A lesson to other community networks, Wilson is documenting the deals TWC uses to keep subscribers. All communities should keep these records.

"Time Warner Cable's market tactics include anti-competitive pricing that interferes with Wilson's ability to secure customers through normal marketing," the application [for broadband stimulus] states. "TWC offers below-market rates to customers seeking to switch to Greenlight, locking them...

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Posted November 1, 2010 by christopher

I recently heard that the only place one finds a free lunch is in a mouse trap. As we sift through the lessons from the broadband stimulus programs, we have learned that the federal government preferred funding private projects rather than those that are structurally accountable to the community.

Before the first round of stimulus applications were due, many communities recognized the costs of applying were too high for them. Now, some are recognizing the high costs of complying with the many federal rules that come with accepting federal grants and loans (as detailed by Craig Settles).

And now, North Carolina's city of Wilson has found that applying for the broadband stimulus may have disadvantaged its FTTH network. Though the application was not accepted, the city has had to turn over its full application (chock full with proprietary information) to its competitors.

This is yet another example of ways in which the "playing field" is tilted against the public. The Wilson Times explained the situation and settlement.

The application included a proposed expansion of the network to provide reduced-cost or no-cost broadband lines to homes of Wilson County school children, a health network, increased lines for police and other improvements that would enhance the network in the city, Goings said.

When the North Carolina Telecommunications Association (with prominent member Time Warner Cable - incumbent cable provider competing with Wilson's Greenlight) asked to see the full application, the City refused to turn it over -- even after a court ruled against the City. The City argued the application contained key information regarding the policy and utilities that should not be made public for security reasons. When the Department of Homeland Security ignored the City's requests to intervene, the City was compelled to release the documents.

This is a particularly interesting juxtaposition as privately owned telcos and cablecos regularly argue against having to disclose any information about about their networks as a security...

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Posted October 18, 2010 by christopher

As Salisbury prepares to officially launch its publicly owned FTTH network offering triple-play services, it offers lessons for other communities that want to follow in its footsteps. As we wrote a month ago, Fibrant has candidly admitted it cannot win a price war with incumbents. Companies like Time Warner Cable have a tremendous scale advantage, which allows them to price below cost in Salisbury because the large profits from all the non-competitive markets nearby can subsidize temporary losses.

On October 10, the Salisbury Post ran a story "Fibrant can't match cable company specials." Alternative possible titles for the article could have been "Cable Co cuts prices to drive competition from market," or "Time Warner Cable admits customers pay different prices for same services." Interestingly, when Fibrant unveiled its pricing originally, the headline read "Fibrant reveals pricing" rather than "Fibrants offers speeds far faster than incumbents."

A lesson for community networks: do not expect the media to cover you fairly. The big companies have public affairs people with relationships with the press and they often buy a lot of local advertising. This is not to say all local media is bought off -- far from it -- but local media will have to be educated about the advantages of community networks.

Quick question: When you hear this quote, who do you first think of?

"We always work with customers to meet their needs and budget."

The cable company, right? Well, that is Time Warner Cable's claim in the above Salisbury Post article. Later in the article, a local business owner expressed a different sentiment: "Time Warner has the worst customer service I have ever dealt with."

The business owner goes on:

“Fibrant may have these same kind of issues, however I can actually go to the source to deal personally with someone who is vested in the community, not spend two hours on the phone and never solve the problem as I do with TWC,” he said.

“Even if pricing is higher, I would make the change. Price is important, but quality and service is tantamount.”

Speaking of the services...

...
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Posted October 1, 2010 by christopher

Back in 1998, the Braintree Electric Light Department (Massachusetts) built an HFC network for remote monitoring of their electrical services. In 1999, they extended the network to become the first broadband provider in town.

With about 1,500 Internet customers solely from word-of-mouth advertising, BELD staff looked to expand the offerings from its HFC network. In 2000, a cable television plan and $3.5 million bond issue were approved at Town meeting. State-of-the-art digital cable service was launched before the end of that year, and by the end of 2001, BELD was serving 4,000 cable and nearly 3,000 Internet customers.

As a measure of their success, citizens just voted BELD Broadband the top ISP of the area for the 3rd year in a row ...

The town also voted the department Best Cable TV Provider (for the second year) and Best Phone Service in 2010, casting votes via BestOfSurveys.com with Market Surveys of America, an independent survey company and member of the Better Business Bureau.

You can follow BELD Broadband on twitter.

Posted September 30, 2010 by christopher

Sounds like the Scottsboro Electric Power Board is doing well. They offer fiber-optic services to businesses in addition to the cable services they offer to the general public.

Our Cable employees have also had a busy summer. We are experiencing a good bit of growth in business phone line installations and fiber optic data installations. Our phone partner Knology (based in West Point, Georgia) is doing a great job for us. Knology provides the telephone switching and long distance connections so we can concentrate on customer connections and customer service.

Knology seems to have partnered with a number of muni networks to offer telecom services.

Posted September 29, 2010 by christopher

On August 19, 2010, I was one of hundreds of people telling the Federal Communications Commission to do its job and regulate in the public interest. My comments focused on the benefits of publicly owned broadband networks and the need for the FCC to ensure states cannot preempt local governments from building networks.

My comments:

I’ll start with the obvious.

Private companies are self-interested. They act on behalf of their shareholders and they have a responsibility to put profits ahead of the public interest.

A recent post from the Economist magazine’s technology blog picks up from there:

WHY, exactly, does America have regulators? … Regulators, in theory, are more expert than politicians, and less passionate. …They are imperfect; but that we have any regulators at all is a testament … to the idea that companies left to their own devices don't always act in the best interests of the market.

They go on to say

If companies always agreed with regulators' rules, there would be no need for regulators. The very point of a regulator is to do things that companies don't like, out of concern for the welfare of the market or the consumer.

When we talk about broadband, there is a definite gap between what is best for communities and what is best for private companies. Next generation networks are expensive investments that take many years to break even.

With that preface, I challenge the FCC to start regulating in the public interest.

The FCC does not need a consensus from big companies on network neutrality. It needs to respect the consensus of Americans that do not want our access to the Internet to look like our access to cable television.

But while Network Neutrality is necessary, it is not sufficient. The entire issue of Network Neutrality arises out of the failed de-regulation approach of the past decade. Such policies have allowed a few private companies to dominate broadband access, giving communities neither a true choice in...

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Posted September 28, 2010 by christopher

Lafayette's LUS Fiber network, after recently kicking off its ad campaign, has decided to offer 100Mbps residential connections after a number of requests from subscribers. The network previously offered a 100Mbps business service for $200 -- it seems they are now just allowing anyone to subscribe at that level and price.

As John notes at Lafayette Pro Fiber blog, this is the only tier for which residential plans come with the same price as business plans.

The other residential tiers are cheaper than their corresponding business tiers by 45-48%. Nor, according to Huval's remarks in the comments is the monthly usage cap any different—in both the residential and the commercial versions of the 100 meg package is capped at 8 terabits. (Note: that'd be about 1 terabyte of hard disk storage.) The idea behind the higher prices for businesses is that they use much more bandwidth than households—and LUS pays for its connectivity by capacity.

LUS Bandwidth Caps

This brings up something I don't think I previously noted in discussions about LUS Fiber - it comes with a monthly transfer cap. I cut the cap chart out of their user agreement [pdf] above. Remember, 8 bits to the byte. Thanks to DSL Reports for the link to the user agreement.

This raises an interesting discussion. Private cable companies typically enforce caps because their network cannot physically support many users using a lot of bandwidth simultaneously. When hundreds of users share a single connection (as with cable), a few major users can seriously impact the experiences of others.

In a FTTH network like Lafayette's, there is no real danger of one user's activities affecting another's. However, there is a danger of racking up a high bandwidth charge for LUS Fiber if many users are constantly using a lot of bandwidth. By constantly, I mean really constantly as in...

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