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Carl Junction Pulls Out of Public Private Partnership

In the spring, we reported on a public private partnership agreement between the community of Carl Junction and Wi-Fi provider Aire Fiber. According to City Administrator, Steve Lawver, the City Council had second thoughts and pulled out of the deal.

Even though the partnership has ceased to be an option, the people of Carl Junction will still have better connectivity. Aire Fiber found the interest level was so intense that it will independently deploy the equipment to serve the community's 5.6 square miles and approximately 7,400 people.

As part of the abandoned partnership agreement, the city would have paid for and provided locations to mount necessary equipment. Aire Fiber would have handled installation, management, and technical aspects needed to keep the network up and running. In exchange, the city would have received 10 percent of the gross revenue from the network. The system would have cost an estimated $400,000 - $450,000 to deploy and both entities estimated just 10 percent of the market would have allowed them to break even.

Now the city has typical water tower lease agreements with Aire Fiber. Each tower mounting Aire Fiber equipment brings in $100 per month. 

Carl Junction has been searching for better Internet access for its businesses, schools, and residents for several years. In 2012 they commissioned a feasibility study and decided in 2013 to move forward with plans for a fiber network. Unfortunately, the community had to seek other options when it chose not fund the $5.2 million project.

As a post mortem, Lawver advises other city officials to take the time to educate elected officials and not rush the process, especially when the time comes for final approval. 

Our process from FTTH feasibility to this final agreement took 4 or 5 years.  Be patient. Understand that if you get down to the final agreement there is a good chance you may be the only person left that remembers the whole process.

Holyoke Success Spurs Interest in Mass Muni Networks - Community Broadband Bits Episode 162

A few weeks back, we noted an excellent new report on Holyoke Municipal Light Plant in Massachusetts published by the Berkman Center for Internet and Society. This week, we discuss the report and lessons learned from it with David Talbot, Fellow at the Berkman Center. David gives us some of the key takeaways from the report and we discuss what other municipal light plants are doing, including how Holyoke Gas & Electric is using the state owned middle mile network to partner with other municipalities like Greenfield and Leverett. 

Finally, David offers some insight into how the municipal light plants that have not yet engaged in expanding Internet access think about the challenges of doing so. You can listen to (or read the transcript of) episode 65, where we interviewed Tim Haas of Holyoke Gas & Electric. 

This show is 20 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.

Transcript below.

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

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."

AT&T, Comcast, Lies Hurt Homeowners

As of this January, the FCC defines broadband as 25 Mbps downstream and 3 Mbps upstream, but in some rural areas in the United States, people are still struggling to access DSL speeds of 768 kbps. In a few extreme cases, individuals who rely on the Internet for their jobs and livelihoods have been denied access completely. 

The sad state of affairs for many Americans who subscribe to the major Internet service providers like AT&T and CenturyLink was recently chronicled in an article on Ars Technica that examined AT&T’s stunning combination of poor customer service, insufficient infrastructure, and empty promises to subscribers. It tells the unfortunately common story of the little guy being systematically overlooked by a massive corporation focused solely on short-term profit maximization. 

Mark Lewis of Winterville, Georgia, and Matthew Abernathy of Smyrna, Tennessee, are two examples of AT&T subscribers who, upon moving into new homes, found that not only were they unable to access basic DSL speeds, but that they had no Internet access whatsoever. Alternatively citing a lack of DSL ports and insufficient bandwidth, AT&T failed to provide Lewis Internet access over the course of nearly two years. As for Abernathy, the corporation strung him along for 9 months without providing DSL, forcing him and his wife to rely on a much more expensive Verizon cellular network to go online. 

Holyoke Case Study from Berkman Center Explores Massachusetts Muni Fiber

A few weeks ago, Harvard’s Berkman Center for Internet and Society released a report that documents the achievements of Holyoke Gas & Electric (HG&E) Telecom, a municipal electric utility that now provides fiber-optic broadband Internet to local businesses in several western Massachusetts towns. The utility’s move into fiber-optics has led to municipal savings for the City of Holyoke, as well as increased high-speed access in neighboring cities, and driven economic development. We interviewed Holyoke's Senior Network Engineer, Tim Haas, in a previous episode of the Community Broadband Bits podcast.

Because the state of Massachusetts has no barriers that prevent the creation of municipal Internet networks, HG&E has been able to compete on a level playing field with incumbent ISPs Comcast and Charter. HG&E is among 12 MLPs (Municipal Light Plants) out of 41 in the state to offer fiber Internet services. Researchers at the Berkman Center believe that MLPs could play a large role in expanding Internet access and business opportunities throughout the state as electricity revenues experience diminishing returns and data needs grow. For example, HG&E’s fiber connection was a factor in the Massachusetts Green High Performance Computing Center’s decision to open a $90 million data center in Holyoke. 

HG&E is a somewhat unique municipal network in that it offers services not only in Holyoke, but also in nearby Chicopee. It also assists Leverett and Greenfield with their own networks. In Chicopee, the utility provided fiber access in a collaboration with 35 local businesses. In Leverett, it is managing the municipal network, with services provided by a local private company. As for Greenfield, HG&E now serves as the ISP for City Hall and the city’s police station, both of which will function as Internet access nodes as the town looks to create a fiber and wireless network that extends into homes and businesses. 

Video: Westminster and Ting Kick Off Deployment

Westminster recently officially lit up the new fiber network with its partner Ting. They create several videos to record the event, including this montage of interviews with movers and shakers in the municipal network industry. The two partners announced their agreement earlier this year: the city will own the infrastructure and Ting will provide retail services to local residents and businesses via the network.

In the video you will see Dr. Robert Wack, the City Council Member behind the initiative, along with leading telecom attorney Jim Baller, Gigi Sohn from the FCC, and Deb Socia who heads up Next Century Cities.

Check it out:

 

WiredWest Grows: Roster of Towns Up to 22

Momentum is growing in WiredWest territory and each town that votes takes on a fresh enthusiasm. New Salem is one of the latest communities to overwhelmingly support joining the municipal broadband cooperative. The Recorder reported that all but one of the 189 registered New Salem voters chose to authorize borrowing $1.5 million to move forward with the initiative. There are now 22 towns that have joined.

According to Moderator Calvin Layton, a typical town meeting draws 60 to 70 voters, far less than this one did. Apparently, investing in better connectivity is a hot button issue in places like New Salem, where Internet access is slow, scant, and expensive.

Poor connectivity has impacted local commerce and even driven some residents with home-based businesses away from New Salem. For Travis Miller, a role playing game designer, and his wife Samantha Scott, an IT professional, the town’s slow Internet speeds were holding them back so they moved away. In a letter to the New Salem Broadband Committee, Miller wrote:

A lack of broadband Internet service was one of the elements in our decision to move. A substantial online presence has become a basic requirement for successful table top game designers. Many of the platforms used to interact with fans and clients require broadband service. Our lack limits my income and makes further penetration into the market difficult if not impossible.

Adam Frost — owner of an online toy store, The Wooden Wagon — also found New Salem’s slow Internet speeds to be a limiting factor for his business. He said:

Though The Wooden Wagon is a specialty business, our needs are not unique: pretty much any business owner or person hoping to telecommute has the same requirements. Businesses outside the region with whom we work expect us to be at the same level technologically as they: they will not make concessions just because our Internet service is outdated. We must keep up, or be left behind.

CNS Expanding Fiber in Rural Georgia

Community Network Services (CNS) has been serving six rural southwest Georgia communities since the late 1990s. Recently, we learned that the network added two more communities to its service area when it took over a small municipal cable system in Doerun and purchased a private cable company in Norman Park.

CNS has been our radar since 2012 when we learned how Thomasville, Cairo, Camilla, Moultrie, Baconton, and Pelham joined together to create a regional network that reached into 4 counties. The network has brought better access to rural Georgia, improved educational opportunities, and helped lower taxes.

Mike Scott, Moultrie City Manager, gave us details on the expansions into both of these very small communities. Scott repeated the CNS philosophy:

We don't look at it as a just a business plan…we look at it as economic development for the entire county.

Doerun, population 774, had its own municipal DSL and cable TV system but it needed significant upgrades. Doerun also faced increased costs for content, technology, and personnel challenges, and customers wanted faster connectivity. CNS and the community of Doerun had discussed the possibility of a CNS take over of the system in the past but network officials hesitated to take on the investment until Doerun upgraded due to the condition of the system. Doerun's school was already connected to the CNS network.

In addition to the problems with the network, an upgrade required considerable make-ready work. CNS estimated that preparing existing utility poles for fiber would be expensive, according to Scott, and network officials did not feel comfortable making that additional investment. 

Like many other small rural communities, Doerun operates its own municipal electric utility. The electric system was also in need of upgrades but due to lack of available capital, the city would need to borrow to fund the work. CNS and Doerun worked out an agreement to transfer the cable TV and Internet access system to CNS for mutual benefit.

Lafayette Celebrates 10 Year Anniversary of "Yes" to Network

In June, 2005, voters in Lafayette chose to invest in a municipal FTTH network, now known as the only municipal gigabit network in the state, LUS Fiber. To celebrate the milestone, City-Parish President Joey Durel has declared July LUS Fiber Month. Current customers' Internet access has been boosted up to gigabit speed at no extra charge for July and the city will celebrate with a series of events this week. The entire community is invited to participate onsite but most of the events will be broadcast live so if you are not there, you can be part of the celebration. See the list of events below.

In the past ten years, the network has attracted thousands of new jobs, created better educational opportunities, and helped bridge the digital divide. Just last fall, three high tech companies committed to bringing approximately 1,300 new jobs to the "Silicon Bayou." The presence of the network, the University of Louisiana's local top-ranked computer science program, and its quality grads were two more key factors for choosing Lafayette. In April, Standard & Poor gave LUS Fiber an A+ bond rating based on the system's "sustained strong fixed charge coverage and liquidity levels, and the communication system’s improved cash flow."

The July issue of the local Independent tells the story of the network. According to Terry Huval, Director of LUS Fiber, the self-reliant streak has always been part of Lafayette's culture - in 1996 the city celebrated its 100th year vote to create its own electric and water system. The Independent article describes that culture as it permeated the vision shared by City-Parish President Joey Durel and  Huval.

Call Center Central: Morristown, Tennessee?

The city of Morristown, Tennessee received more positive economic news recently when Sykes Enterprises, a global company that operates in more than 20 countries, announced plans to open a call center in an abandoned big-box store and connect to the city’s municipal network, FiberNet. Sykes estimates that the call center will employ up to 500 workers over the next three years, the large majority of which will come from the Morristown community. 

In Morristown, Sykes will join Oddello Industries, a furniture manufacturer, and the Molecular Pathology Laboratory Network, a personalized health firm – other companies that have cited the fiber network as an important part of their decision to locate facilities in the city of 30,000 people. 

According to the president of the Morristown Chamber of Commerce, Marshall Ramsey, the existence of FiberNet played a role in attracting the 50,000-plus employee firm to Tennessee: 

For Morristown to be able to have a local provider and a secondary provider in AT&T with a gig gives us that redundancy that most companies can’t get elsewhere in the country. 

FiberNet is operated by Morristown Utility Systems, the publicly owned electric and water utility. It began offering gigabit Internet speeds in 2012, though it has served local businesses since 2006. 

This is the second time in two months WBIR – Morristown’s NBC network – has run a story about FiberNet. In May, the station covered the way in which the municipal fiber network has stimulated economic development by increasing competition between service providers. When FiberNet upgraded its network to provide gigabit speeds, the incumbent telephone company in Morristown, AT&T, responded with some upgrades of its own. Morristown is one of a select few cities to have multiple gigabit-offerings, along with neighboring Chattanooga, Tennessee.  

Rural Rio Blanco County Builds Open Access Fiber, Wireless - Community Broadband Bits Podcast 158

Rio Blanco County is a large, rural county in northwestern Colorado that has two population centers. The county has a sharp plan for building FTTH to the population centers and wireless across most of the county to improve Internet access in a region the national carriers have little interest in. 

In this week's episode, we interview county IT Director Blake Mobley, who has long been involved in improving Internet access for community anchor institutions in the area. We talk about their plan and how they are financing it (enabled in part by the Department of Local Affairs in Colorado - which has helped many community networks). 

We also discuss many other aspects of what it takes to create a project like this -- including building trust among local stakeholders -- and their particular open access approach and terminology for the different layers in the stack of entities involved. Finally, Blake tells us what they believe has to happen for the project to be successful. Read their vision statement here. Read our full coverage of Rio Blanco County stories here. 

This show is 23 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.

Transcript below.

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

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."