After long deliberation, utility board members in Traverse City have taken a firm step toward Internet infrastructure in order to improve connectivity in Michigan’s “Cherry Capital of the World.” The board of Traverse City Light & Power (TCL&P) voted unanimously to adjust their six-year capital improvement plan to include the cost of a citywide fiber network.

Making A Decision

City leaders have considered several options to give residents and businesses better Internet access. They’ve had their own fiber infrastructure for about ten years, which they’ve leased to schools and hospitals and used to offer free downtown Wi-Fi. For over a year now, they've tossed around several possibilities on how to move forward to meet the demands of the community.

TCL&P has mulled over the pros and cons of offering retail services themselves as well as leasing the infrastructure to a single provider. The consultants who developed their feasibility study examined both options. A local group of tech enthusiasts encouraged TCL&P to consider an open access plan, but their consultants reviewed the option and advised against it. Other options were to do nothing or work with an electric cooperative serving the rural areas around the city.

At their May 10th meeting, board members decided to eliminate the option that places TCL&P in the role as retail ISP. They will expand the existing network by another 184 fiber miles over the next two years to approximately 10,800 customers; TCL&P will own and operate the infrastructure, but they intend to seek some other entity to serve as ISP. The up front investment is lower with this plan than if they were to operate as a muni ISP and they’ve had discussions with at least one interested provider. TCL&P officials note that their current decision doesn’t prevent them from an open access arrangement or contracts with multiple providers in the future. 

Board members decided they weren’t ready for the extra investment required for TCL&P to serve as ISP in addition to infrastructure management:

...

When state legislators in Tennessee recently passed the Broadband Accessibility Act of 2017, tech writers quoted our Christopher Mitchell, who pointed out that the proposal has some serious pitfalls.

Christopher's statement appeared in several articles:

"Tennessee taxpayers may subsidize AT&T to build DSL service to Chattanooga's [rural] neighbors rather than letting the Gig City [Chattanooga] expand its fiber at no cost to taxpayers. Tennessee will literally be paying AT&T to provide a service 1,000 times slower than what Chattanooga could provide without subsidies."

Motherboard

Motherboard noted that the Tennessee legislature had the opportunity to pass a bill, sponsored by Senator Janice Bowling, to grant municipal electric utilities the ability to expand and serve nearby communities. Nope. Legislators in Tennessee would rather pander to the incumbent providers that come through year after year with generous campaign contributions:

To be clear: EPB wanted to build out its gigabit fiber network to many of these same communities using money it has on hand or private loans at no cost to taxpayers. It would then charge individual residents for Internet service. Instead, Tennessee taxpayers will give $45 million in tax breaks and grants to giant companies just to get basic infrastructure built. They will then get the opportunity to pay these companies more money for worse Internet than they would have gotten under EPB's proposal.

The Motherboard reporter quoted Bowling from a prior article (because, like the movie "Groundhog Day," she keeps finding herself in the same situation year after year):

"What we have right now is not the free market, it's regulations protecting giant corporations, which is the exact definition of crony capitalism," she said.

TechDirt Gets Personal

...

A new Pew Research Center survey reveals that 70 percent of adults, regardless of political leanings, believe local governments should be able to invest in municipal Internet networks.

Local Authority Has No Party

The survey, conducted March 13 - 27 supports the finding that local authority for telecommunications decisions is a bipartisan notion. On closer examination of the survey results, we see that 67 percent of Republicans and Republican leaning respondents and 74 percent of Democrats and Democratic leaning respondents support local authority to invest in municipal networks.

In Colorado, two more local communities voted this month to opt out of the state’s restrictive SB 152. The law prevents local communities from investing in Internet infrastructure to offer telecommunications services or work with a partner to improve local connectivity. Colorado Springs and Central City became cities 97 and 98 to join the growing list of communities opting out, which includes places that have taken action to deploy and others who merely want the option. 

Colorado Springs, known as one of the state’s more conservative communities, passed the measure with 61 percent of the vote, not far from the results of the Pew Research survey.

Of Growing Importance

The survey also asked U.S. adults about how important high-quality Internet access is at home. Forty-nine percent said home broadband is essential and 41 percent described it as important but not essential. That leaves just one out of ten survey respondents who describe home broadband as either not too important or not important at all.

Respondents also answered questions about assistance to low-income households to help them pay for Internet access. Unlike support for municipal networks, political affiliation, income level, and current access to the Internet appeared to play a part in respondent replies.

The survey included 4,151 respondents. You can learn more about the respondents, the questions,...

Pennsylvania’s state barriers won’t stop this community from improving Internet service for its municipal facilities, residents, and businesses. The City of Lancaster is collaborating with private provider MAW Communications to ensure the community has next-generation technology. Their public-private partnership, LanCity Connect, will offer affordable 1 gigabit (1,000 Megabits per second) service over a new Fiber-to-the-Home (FTTH) network.

Shared Risk, Public Financing

The Lancaster Online has closely followed the development of the partnership from a 2015 Wi-Fi project between the partners to the current citywide fiber plan. Here's a quick summary of the basic framework of the partnership: 

MAW Communications originally built a $1.7 million fiber backbone starting in 2015 with financing from the city's water fund bond. The city had refinanced its water utility debt, saving some $7.8 million and they worked out an agreement with MAW where the private partner would deploy and own a backbone fiber network. Over the 20 year term of the deal, the city has the right to half the network for city services, including automatic meter reading (AMR) and a traffic control system, with the city being able to renew the deal for four additional terms. Officials have said this arrangement will not impact water rates.

MAW Communications will extend the network to premises, aided by a $1.5 million loan with a 7 percent interest rate from the city's general fund reserves. The provider will repay the loan over a 13 year period. As long as MAW Communications has an outstanding loan to the city, the provider cannot sell the network without the city's written approval. Though the loan will help MAW to begin building the network, the costs of connecting homes and businesses would still be prohibitive at $1,000 each if not for another element of the plan.

The city developed a creative way to spread that $1,000...