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Policy Brief: Building Community Broadband Access

In partnership with the Center for Popular Democracy, we have created a new policy brief: Building Community Broadband Access. We offer examples of communities that have acted to improve access by using smart strategies that facilitate community owned networks.

This fact sheet provides information to legislators, advocates, or concerned citizens who want to educate others about the benefits of publicly owned networks. This is the latest in our growing collection of convenient, compact, and instructive fact sheets. 

The Center for Popular Democracy works with a long list of local, state, and national groups to exercise grass-roots democracy. 

Download the Policy Brief [PDF].

Sun Prairie Ponders Fiber Network Investment in Wisconsin

The Sun Prairie City Council met on January 14th to discuss a possible investment in a municipal fiber network. Thank you to local resident Jonathan Kleinow for alerting us to developments in the south central Wisconsin town.

The Star published an article about the meeting in which The Motive Group presented information to the Committee of the Whole. According to the story, the consulting firm has been working with Sun Prairie Utilities for a year to find ways to improve local connectivity and spur economic development with fiber. The community is considering the possibilities of a triple-play FTTH network for the areas 30,000 residents.

Sun Prairie Utilities solicited responses to a community survey. They received 700 responses with 88% in favor of a fiber investment. 

From the article:

The recommended plan put for[th] by The Motive Group has a total cost of near $27 million, with $21 million of that as year-one capital expenditures to serve roughly 13,550 homes and businesses in the city.

Budgeted in the initial year's expense total is $11 million for aerial and underground construction and equipment.

Once the fiber system is operational and available for customers, [The Motive Group's Beth] Ringley said projections show $9.97 million in annual operating revenue by year 20 of the system to go along with expenses of $1.26 million.

By year 20, total assets are projected to be at $27.16 million, with total cash at $12.56 million.

Councilman Jon Freund commented that he was opposed to the idea at first but that he now believes Sun Prairie Utilities and the City could partner to distinguish the community. From the article:

“Technology has become a greater and greater need for both businesses and residents,” Freund continued. “This is an opportunity for us to basically differentiate Sun Prairie from all the other communities in Dane County.”

...

He added that fiber installation would “put Sun Prairie on the leading edge” for economic development and local and long-distance education opportunities.

High Speed in the Blue Grass State: Russellville's Gig

The Logan Journal recently reported that the Russellville Electric Plant Board (EPB) now offers gigabit service to local businesses. The article notes that Net Index, an online tool to measure download and upload speeds, recognizes EPB as the first Gig city in Kentucky. To learn more about the community and its network, we talked with Robert White, General Manager of EPB.

The community of 7,000 is the county seat of south central's Logan County. Russellville is located in the center of several other larger communities: Nashville, Bowling Green, Hopkinsville, and Clarksville, Tennessee. Manufacturing has been a large part of the local economy for generations, but community leaders recognize the vulnerability of a narrow economic base. In order to encourage a versatile economy, Russellville invested in its telecommunications utility.

The community wants to encourage small business while simultaneously providing manufacturers the connectivity they need. Leadership sees the ability to remain competitive directly tied to their network. In addition to the economic development opportunities a fiber network can provide, communities like Russellville rely on electricity revenue from large consumers. Retaining the large electric consumers that also provide jobs in the community is a must.

Russellville's electric utility created a strong advantage when it was time to venture into telecommunications. EPB had already established a strong relationship with its Russellville customers, says White, and locals felt they could trust their municipal electric provider.

Defender of Big Telecom Admits Copper Can't Compete

The incomparable Diane Rehm show on WAMU recently tackled the network neutrality ruling [listen to it there]. Guests included Cecilia Kang, Susan Crawford, and Jeffrey Eisenach from the American Enterprise Institute, a think tank famous for promoting what is best for massive, politically influencial firms. Jeff and I both took part in a debate about municipal networks a few years ago - watch here. It is a good panel with numerous perspectives and back and forth. But I was surprised to hear Eisenach confirming a main argument Susan, myself, and many others have been making: that copper is insufficient. People like Eisenach are forever over-estimating what DSL can do, claiming that we don't need massive fiber investment. But the conversation turns to Europe about 34 minutes into the interview and in explaining why he thinks Europe has fallen behind the U.S., he says "They are reliant on these 20th century copper networks which have real limits on the amount of speed that they can deliver." Now, he was quoting in the previous paragraph, so he may claim that his recognition of copper limits was nothing more than a quote to someone else - but he quoted it quite approvingly. And most of us in the United States are stuck with that same technology as our only competitor to the local cable monopoly. Make no mistake. We do need fiber networks, as even industry concedes in more and more cases - see Cox suddenly investing in FTTH - but we also need accountability. Just convincing big, unaccountable global corporations to invest in fiber won't improve our local economies as much as we need.

Meet Russellville, Kentucky's Broadband Speed Leader - Community Broadband Bits Podcast #82

The municipal electric utility in Russellville has launched Kentucky's first citywide gigabit service on its FTTH network. Russellville Electric Plant Board General Manager Robert White joins us to share their motivations for building a fiber network. The utility had originally offered some telecommunications services over a wireless system but recognized the need for a more robust fiber system, in part because of the lack of investment in modern telecommunications by incumbent cable and telephone providers. Now Russellville has much better options for residents, local businesses, and schools. We expanded on this interview with a mini case study of their network. Read the transcript of our conversation here. 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 15 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 Haggard Beat for the music, licensed using Creative Commons.

Cox Ditches Cable for Fiber in Upscale Housing Development

John St. Julien covered this story last month, but I couldn't resist amplifying it. Cox Cable, which has undoubtedly told hundreds of communities that they don't need anything better than what it delivers over its cable network, has opted for a full FTTH in a wealthy new development in California's Orange County. CED has the details, but the key point for us is yet another recognition that cable networks are yesterday's technology, unable to deliver the services that communities need today and will certainly need tomorrow. Communities are smart to invest in their own fiber networks not only because the technology is superior, but because local, community ownership results in a more accountable network that will continue to meet community needs long into the future. Municipal electric networks have offered less expensive, more reliable services for over 100 years in some cases - a track record that reminds us how powerful this model can be.

Wisconsin Gets a Gig in Reedsburg

The latest addition to the growing list of gigabit communities is Reedsburg, Wisconsin. For residential customers, the service is available for $274.95/month when bundled or $299.95/month standalone. The network has long delivered gigabit services to local businesses but the residential offer is new.

In a recent press release the Reedsburg Utility Commission (RUC) announced it now offers gigabit service to business and residential customers. From the press release:

“More and more businesses and homes need a faster connection to consume and produce large amounts of data.  Our gigabit network will accommodate those needs well into the future,” said RUC General Manager Brett Schuppner. “Offering gigabit broadband services is very rare in this country and I am proud to be part of a community that is so technologically advanced.  RUC strives to reach new levels of innovation with our 100% fiber optic network serving Reedsburg, Loganville, Lake Delton, and surrounding rural communities.”

Reedsburg is located approximately 55 miles northwest of Madison and is home to 10,000 residents. Reedsburg began dabbling in fiber optic infrastructure in 1998 to connect electric substations and provide Internet service to several public schools. The RUC provides water, electricity, and triple-play to the community. Community leaders took advantage of opportunities over the years to extend the reach of its network, including a 2010 American Recovery and Reinvestment Act (ARRA) award to expand the FTTH network.

Fact Sheet on Financing Municipal Networks

We are adding a new fact sheet to our growing collection with the new, Financing Municipal Networks Fact Sheet. Many have assumed that municipal networks are funded with taxpayer dollars, but this is not true in the overwhelming number of cases. When a community decides it needs to establish its own publicly owned network infrastructure, one of the biggest challenges is financing the investment. Each community is unique but three main methods of financing are most popular. This fact sheet offers a quick look at these common approaches and provides real-world examples. Download the Fact Sheet [pdf]

Seattle, Gigabit Squared, the Challenge of Private Sector Cable Competition

This the second in a series of posts exploring lessons learned from the Seattle Gigabit Squared project, which now appears unlikely to be built. The first post is available here and focuses on the benefits massive cable companies already have as well as the limits of conduit and fiber in spurring new competition. This post focuses on business challenges an entity like Gigabit Squared would face in building the network it envisioned. I am not representing that this is what Gigabit Squared faced but these issues arise with any new provider in that circumstance. I aim to explain why the private sector has not and generally will not provide competition to companies Comcast and Time Warner Cable. Gigabit Squared planned to deliver voice, television, and Internet access to subscribers. Voice can be a bit of hassle due to the many regulatory requirements and Internet access is comparatively simple. But television, that is a headache. I've been told by some munis that 90% of the problems and difficulties they experience is with television services. Before you can deliver ESPN, the Family Channel, or Comedy Central, you have to come to agreement with big channel owners like Disney, Viacom, and others. Even massive companies like Comcast have to pay the channel owners more each year despite its over 10 million subscribers, so you can imagine how difficult it can be for a small firm to negotiate these contracts. Some channel owners may only negotiate with a provider after it has a few thousand subscribers - but getting a few thousand subscribers without good content is a challenge. Many small firms (including most munis) join a buyer cooperative called the National Cable Television Cooperative (NCTC) that has many of the contracts available. But even with that substantial help, building a channel lineup is incredibly difficult and the new competitor will almost certainly be paying more for the same channels as a competitor like Comcast or Time Warner Cable.

New Case Study of Leverett, Mass, Muni Network

We first reported on Leverett in the spring of 2012. Leverett, a small town of 2,000, also attracted Susan Crawford's attention. Crawford and Robyn Mohr recently wrote a case study on the community's efforts to build its own fiber network. The Berkman Center for Internet & Society released the paper on December 16, 2013.

Readers will remember that Leverett, tired of being dismissed by large providers, decided to build a FTTH network to each home in town. Construction of the network, funded by a modest tax increase, is now underway.

The report, Bringing Municipal High-Speed Internet Access to Leverett, Massachusetts offers these main findings, as reported on Crawford's blog:

LeverettNet is a last-mile fiber to the home network that will be operated by a publicly controlled Municipal Light Plant entity. The MLP will operate independently of Leverett’s political infrastructure, but will be required by state law to charge subscribers no more than the cost of providing service.

The network will connect every household in Leverett. Although every residence and business will be linked to LeverettNet, individual homeowners will have the discretion to decide whether to subscribe.

LeverettNet was planned to take advantage of MassBroadband 123, a publicly funded fiber network recently built to connect towns (but not individual homes and businesses) in Massachusetts.

Long-term leadership, planning, and community engagement by Leverett’s public officials prompted the citizens of Leverett to approve a modest property tax increase in return for the long-term benefits of a FTTH network.