FTTH

Content tagged with "FTTH"

Fiber to the Home
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Monticello Fiber Price War Offers Key Lessons for Broadband Competition

Monticello Minnesota may be located 40 miles outside Minneapolis, but it is the center of the planet when it comes to FTTH competition. We have tried and cannot identify another community localed on planet earth with two separate FTTH networks going head to head across the entire community. We have long written about Monticello, most recently to look at hypocritical criticism of the project (which gives me an opportunity to note a similar dynamic in Lafayette, Louisiana). And we have covered the disappointing news that the network has not produced enough revenue to make full bond payments. Short explanation for how Monticello came to be unique in having two FTTH networks: Monticello had poor Internet access from Charter and telephone company TDS. Each refused to invest after local businesses and elected officials implored for better networks. Monticello started building its own FTTH network (Monticello FiberNet) and TDS sued to stop the project while suddenly decided to upgrade its slow DSL to fiber. Lawsuit was tossed out and Monticello finished its network. In most community fiber networks, the DSL provider seems to fade away because it cannot offer the fast speeds of fiber or cable, so the market basically remains a duopoly with the community network replacing the telephone company (which continues to offer cheap, slow DSL to a small number of customers). But in Monticello, Charter and TDS engaged in a price war, which has really hurt the City's ability to generate enough revenue to pay its debt. Price wars are very hard on new market entrants because they have to amoritze the cost of their investment whereas the incumbents often have already done so. This means incumbents can almost always offer lower prices if they are determined to do so. In many communities, we have lacked clear evidence of predatory pricing - that is pricing below the actual cost of service to run competitors out of business. This would violate federal law (if any agency bothered to enforce it).

Chattanooga Cements Status as Best Network in the Nation

Chattanooga's EPB Fiber, a municipal FTTH system owned by the city's electric power board, has dramatically lowered its prices for the gigabit connection and increased all Internet speed tiers. The slowest connection you can get from EPB Fiber is 100 Mbps symmetrical - and it comes at the same price that most cable tiers start at for much slower connections - $58/month. Want a gig? That is now $70/month. Here is the announcement:
Video streaming by Ustream The Washington Post covered the story, including several quotes from me.
DePriest tells me that EPB's fiber network is "a great profit center." In the four years the service has been active, the utility company has increased its mid-tier speeds three times — from 15 Mbps to 30 Mbps, from 30 Mbps to 50 Mbps and now from 50 Mbps to 100 Mbps. About 2,500 elite users will enjoy 1-gig speeds by the beginning of October.
Phil Dampier has more coverage at StoptheCap.com, including an analysis of AT&T and Comcast competition.
AT&T charges $65 a month for 24/3Mbps service — its fastest — with a 250GB monthly usage cap, currently not enforced. For $5 more, EPB customers get 1,000/1,000Mbps with no usage limits or overlimit fees.
A recent article in the Chattanoogan noted that Chattanooga had surpassed 50,000 subscribers and was on path to surpass Comcast in subscriber base locally.
Mr. DePriest said Comcast had some 122,000 customers on the EPB grid when EPB launched its rival program. He said Comcast is down to around 75,000 and will likely drop to around 60,000 next year.

WindomNet Creates Jobs, Benefits for SW Minnesota - Community Broadband Bits Episode #64

The small town of Windom in southwest Minnesota has long been one of the smallest FTTH networks in the nation. I have long wanted to bring WindomNet General Manager Dan Olsen on our show because it has some of the best anecdotes in the world of community owned networks. We finally got him! To understand WindomNet, you should know that it has fewer households than what many of us consider to be the minimum threshold for a viable triple-play FTTH network. Not only have they made it work, they have attracted numerous employers to town, as our interview discusses. It also kept a local employer located just outside of town in the area after a massive telelphone company operating in Minnesota found itself unable to provide the service that business requested. Tiny Windom ran a fiber out to the business and kept them in the region. The network has expanded to nearby farm towns with the help of a broadband stimulus award. Even now, after bringing connections to a rural region that the big providers have largely ignored, the big cable and CenturyLink lobbyists that live in the capital in Saint Paul have relentlessly lied about Windom, calling it a failure and presenting skewed figures to suggest the investment had not succeeded. In our discussion, Dan and I explore the reality of WindomNet and how it is benefiting a much larger region beyond its own borders. Read all of our coverage about Windom here. Read the transcript for this show 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 18 minutes long and can be played below on this page or subscribe 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 Break the Bans for the music, licensed using Creative Commons.

California's Smallest Incorporated City to Extend Fiber to Residents

Residents of Vernon, California, will soon have the option to connect to the City's fiber optic network. Vernon offers dark and lit fiber to local businesses via 35 miles of fiber but residents are stuck with slow DSL connections. An EGPNews.com article reports:

City officials say they hope to bridge the digital gap for its residents by becoming an Internet Service Provider, creating, and operating a small-scale broadband residential service program. The Internet will be provided to residents through direct fiber optic connections or via a wireless service connection.

The program will be available to all existing and future residences in the city.

Vernon Light & Power Department Fiber Optic Division serves this town's 5.2 square miles located south of downtown Los Angeles. The population is only 112 in 31 existing households. The network will also connect a future residential project, Meta Housing, scheduled to be completed by the end of 2013. The City is the smallest incorporated city in the state, describing itself as "exclusively industrial." Vernon is home to over 1,800 businesses that employ 50,000 people from surrounding communities. 

The new initiative will connect residents for a one-time connection fee of $100. Monthly service will cost $40.65, which is $10 less than DSL. The fiber connections will be 10 times faster than current DSL speeds. Residents should be able to access the network by November 1.

Chattanooga's EPB Fiber on Community Broadband Bits Podcast Episode #59

Chattanooga's EPB Fiber is the highest profile community network in the U.S. It was the first network in the nation to offer a symmetrical gigabit tier to every last address in the community. On today's Community Broadband Bits podcast, Danna Bailey joins us to discuss the network. Danna Bailey is EPB's Vice President of Corporate Communications and has long helped behind the scenes to keep our site informed of Chattanooga's progress. We talk about why Chattanooga built the network and the role of the stimulus award for smart grid in expediting the build out long after the project had started. We also talk about job growth - both large firms and small entreprenurs locating in Chattanooga while citing the community fiber network as a big part of the reason. The conversation updates the Chattanooga case study we published last year. Chattanooga remains far ahead of its business plan and is doing very well financially. Read all the stories we have published about Chattanooga here. Read the transcript from this episode. 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 25 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment! Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to Break the Bans for the music, licensed using Creative Commons.

Broadband Communities Mag Publishes List of Municipal Fiber Networks

This summer, Broadband Communities Magazine published its list of 135 municipalities that have invested in their own FTTH networks. In the May/June issue, Masha Zager finds that a growing number of communities are building fiber to the home networks. Subscriptions to the magazine are available here.

In her accompanying article [PDF], Zager describes her precise criteria for inclusion on the list:

All the network deployers on this list

Are public entities, consortia of public entities, consortia of public and private entities or, in a few cases, private entities that benefited from significant investment or participation by local governments. 

Own all-fiber networks that connect local homes or businesses to the Internet (or are actively developing such networks). 

Make available – directly or through retailers – such services as voice, Internet access or video (or are planning such services). 

Zager left out commuities with Institutional Networks (I-Nets) that only serve government or schools. The list also omits communities that only lease dark fiber and those that provide services over cable or wireless.

The article discusses commonalities between municipal network communities, including the fact that many communities first run their own electric utility. Often I-Nets come first, serving municipal facilities, schools, and libraries. Next the network will serve commercial and industrial clients. Expansion to single and multi-dwelling households is usually the last step in community connectivity. As our readers know, the deployment and funding approaches can be as unique as the communities they serve.

Zager notes that a growing trend shows larger cities entering the telecommunications business. In the past, networks graced primarily small to mid-sized communities. Those communities were large enough to have necessary resources, but small enough to be ignored by major telecommunications providers.

Leverett On Track for Fiber Network in Massachusetts

We have followed developments in Leverett since we first learned about the small town's decision to build its own next generation infrastructure. The community has faced some challenges but is determined to get its residents connected.

After an overwhelming vote to support a bond measure and minor tax increase to fund the network, Leverett encountered delay when the State attorney general ordered a new bid in April. According to a GazetteNet article, a technical glitch on the bid form allowed bidders to exclude themselves from parts of the project, affecting the overall bid. Leverett awarded the first bid to G4S, but two other firms submitted complaints prompting the review.

After reviewing revised bids in May, Select Board awarded the $2.27 million contract to Millennium Communications Group. The GazetteNet reports that Millennium met with town officials in June to answer questions and examine the bid in detail.

The GazetteNet spoke with Select Board Member Peter d'Errico: 

“When this is up and running, Leverett’s going to have state-of-the-art, worldwide telecommunications capability,” d’Errico said. “It’s comparable service to what Google is providing in Kansas City, and it means that Leverett will also become a desirable place for all kinds of people who work in the mediums that require that level of technology. I see it as having economic benefits for the town, cultural benefits for the town and when you add in things like telemedicine, it means that it’s more than lifestyle, it’s quality of life.”

Scheduled completion date is December 2014.

Longmont to Vote a 3rd Time on Fiber Network

The Longmont community will soon have the chance to decide how quickly they want ubiquitous FTTH. On July 23rd, the City Council unanimously approved a proposal to ask voters in a referendum if they want to bond for funds to speed up construction of the LPC fiber network. Absent bond financing, the network will expand much more slowly over many years.

Readers will remember the 2011 referendum to allow the electric utility to offer broadband services to the people and businesses of Longmont. At the time, Comcast spent over $300,000 via the Colorado Cable Telecommunications Association to fund an unsuccessful Vote No astroturf campaign. The community approved the measure with 60% of the vote. There was an earlier referendum in 2009 that ended in a victory for Comcast following a successful astroturf campaign. Records showed a similar infusion of cash to sway the vote. 

In the recent meeting, some Council Members expressed concern over the city bonding to invest in the telecom business. The Longmont Times Call reported on the meeting:

"We're again a government playing in the private world of capitalism," [Councilman Brian] Bagley said. "What if we don't know what we're doing?"

City Manager Harold Dominguez noted that even if voters approved a bond, the city could still take on a partner. If it passes, he said, the city would have a pretty good idea of how big a piece of the market it could get. And implementation wasn't a huge risk, he said, because the city already knew it could provide the service; it had been doing so for itself, the school district and a few other large users for years.

"Based on the information we've received, yes, we can do it," Dominguez said.

"Olds" is First Gigabit Town in Canada

We introduced you to Olds, Alberta and their community network O-Net in 2012. Now this community of 8,500 will be the first Canadian "gig town" where residents will have access to a gig at incredibly low prices. 

CBC News reports that the Olds Institute for Community and Regional Development, the nonprofit organization building the network, recently approved the upgrade. Residents with 100 Mbps will have access to a gigabit with no increase in price. Depending on how they bundle, the price for Internet will range between $57-90 per month.

CBC's Emily Chung noted how much of rural Canada offers only dial-up or satellite. Olds used to have the same problem; businesses were considering leaving town:

"We had engineering companies here who were sending memory chips by courier because there wasn't enough bandwidth to deal with their stuff," recalls Joe Gustafson, who spearheaded the project to bring a fibre network to Olds.

...

"Now there's no talk about people leaving because of bandwidth challenges."

The $13-14 million project, which also included a video conference center and 15 public use terminals for residents, launched in July 2012. The organization acquired a $2.5 million grant from the province of Alberta and a $6 million loan from the town of Olds. When incumbents were not interested in providing service over the network, O-Net adapted:

"We said, 'Well I guess if we're going to do this, we have to do our own services,'" Gustafson recalled.

The Olds Institute spent $3.5 million to buy the necessary electronic equipment to run internet and other services on the network and to build a central office to house it all. Last July, it launched O-Net.

The community-owned service offers not just internet, but also phone and IPTV services — TV signals carried on the network that includes dozens of SD and HD channels, and movies on demand that can be paused and later resumed.