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The FCC's Pro-Competition Agenda - Community Broadband Bits Podcast 192

This week we welcome Gigi Sohn, Counselor to Chairman Wheeler of the Federal Communications Commission, to Community Broadband Bits for episode 192. Before joining the FCC, Gigi was a founder of Public Knowledge. Gigi discusses the pro-competition agenda that Chairman Wheeler has advanced, including the efforts to ensure communities can decide locally whether to build a municipal network or partner. 

We also discuss other elements of FCC action to encourage competition in the Internet access market, even how television set-top boxes fit in. Echoing some of the comments I regularly hear from some thoughtful listeners, I asked if competition was the best approach given the argument that telecom, and particularly fiber, has the characteristics of a natural monopoly. 

This show is 15 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 Kathleen Martin for the music, licensed using Creative Commons. The song is "Player vs. Player."

Madison, Wisconsin Pilot: Fiber In The Fall

Four low-income neighborhoods in Madison will soon have access to fast, reliable, affordable Internet access, thanks to a municipal fiber-to-the-home (FTTH) pilot program.

Fast, Affordable, Reliable...Soon!

According to a recent Cap Times article, installation will begin in the spring of 2016; community leaders anticipate the network will start serving residents in the fall. The cost of the pilot is estimated at $512,000. The original plan was to offer the pilot in two areas, but in the City Council recently approved an amendment to the city budget to cover the cost of expanding the pilot. Funds for the construction will come from the city's capital budget.

When the city first released its RFP, it received 3 proposals. Ultimately, the city selection committee chose the only FTTH proposal over two wireless proposals, citing reliability and speed as determining factors. Local Internet service provider ResTech will build the network, which will be owned by the city. Residential subscribers will have access to a minimum 10 Megabits per second (Mbps) download and 10 Mbps upload (symmetrical) service for $9.99 per month. There will be no data caps.

Testing the Waters

The Cap Times reports that the results of the pilot will determine the next steps for the city, population 243,000, which has flirted with the idea of a citywide municipal network in the past:

In conjunction with the pilot, Madison will be pursuing a feasibility study and cost-benefit analysis to determine whether to expand the Internet service to other parts of the city in the future.

The city is working with Columbia Telecommunications Corporation for the feasibility study component as a parallel track to the pilot.

The pilot will be two years, and [Chief Information Officer Paul] Kronberger said they hope to have enough data to do the cost-benefit analysis after about one year of operation.

SandyNet Goes Gig: A Model for Anytown, USA

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Many of the most beautiful communities in the United States are in remote areas where incumbent cable and telephone companies have decided not to offer modern, high-quality Internet connectivity. Sandy, Oregon, is one of them. Some 10,000 people live there among the lush green forests and beautiful vistas of the “Gateway to Mount Hood,” 25 miles east of Portland. But Sandy decided to build its own gigabit fiber optic system and now has one of the most advanced, affordable networks in the nation.

A new report by The Institute for Local Self-Reliance details the rise of SandyNet, Sandy's publicly owned high-speed Internet service. "SandyNet Goes Gig: A Model for Anytown USA" charts the growth of this community network.

Sandy, Oregon joined nearly 100 other local governments that have municipal fiber-to-the-home networks to give residents and businesses access to world-class Internet connections. However, the overwhelming majority of municipal fiber networks were built by local governments that already owned their local electrical grids. As Sandy does not have a municipal electric utility, it pioneered a low-risk incremental strategy to build its telecommunications utility, SandyNet.

In New England, Greenfield Votes For a Municipal Network Too

It wasn’t just Colorado cities and counties along with Iowa communities voting this week. Back east, Greenfield, Massachusetts also rushed to the polls to support local Internet choice.

Greenfield is planning to use a combination of fiber and Wi-Fi to deliver services - an approach that has had limited success in the past due to the technical limitations of Wi-Fi. 

The Vote

At Tuesday’s Annual Meeting, residents voted on the future of high-speed Internet access in the town. The referendum, the first step in creating a municipal broadband network, saw a landslide victory. 

The people gave a resounding message that they wanted to pursue a network: 3,287 people voted in favor; only 696 were opposed. According to the local paper the Recorder, this nonbinding ballot referendum allows the town to create a nonprofit to run the municipal broadband network. 

Currently there is a pilot program on two streets – giving residents a taste of community-owned high-speed Internet. This pilot program started in mid-October and provides free Wi-Fi on Main and High Streets. If voters had rejected the ballot referendum, the town would have ended the pilot program and only created an institutional network for the municipal and school buildings. Now, with the referendum passed, they can implement the plan for high-speed Internet access.

The Plan for Broadband

MuniWireless Works in Lompoc…Just The Way They Like It

The early 2000s created a boom of both public and private wireless projects throughout the U.S., but many struggled with unrealistic expectations and flopped. Successful muni wireless networks transformed themselves, adapting to the changing needs of the communities. Some, such as Sandy, Oregon, have transitioned to Fiber-To-The-Home (FTTH) networks where the high-speed fiber-optic cable is hooked up directly to the home. Others repurposed their networks to provide other needed services -- like in Lompoc, California.

Lompoc transformed its $4 million muniwireless network, LompocNet, into a full-fledged Broadband Utility. Originally, the city council hatched the idea of a subscriber-based Wi-Fi network, but times changed quickly. Now, the Broadband Utility primarily provides much-needed internal connectivity for city services.

New Role: City Services

In this small city of about 42,000 people, the Broadband Utility operates a Wide Area Network (WAN) for municipal services. The electric and water utilities use the network for their smart-meters, which automatically provide usage information to the city utilities. Police video cameras transmit their feeds across the service, improving public safety. The Broadband Utility also provides the city’s phone and data services, and and has begun to connect some municipal buildings with fiber-optic cable. The Broadband Utility’s role has increased in importance; Lompoc’s franchise agreement with Comcast expired at the end of 2014, so now the Broadband Utility is beginning to function as an Institutional Network, connecting public buildings.

Lompoc’s approach to broadband may seem inverted to those used to the concept of incremental build-outs, but it worked for the city. In an incremental build-out, a small section of the network is built for a specific purpose and the revenues from that section pay for the next expansion. Lompoc decided to do the opposite: blanket the city completely and immediately with low-cost Internet access via Wi-Fi.

From Being a Flop to Being On Top

RS Fiber Cooperative Breaks Ground

Six years after an initial feasibility study was conducted to assess bringing broadband to Renville and Sibley Counties in southeastern Minnesota, members of the RS Fiber Cooperative board were finally able to dust off their shovels for a groundbreaking ceremony on July 9. Although those shovels may have ended up being more symbolic than they were practical, the ceremony marked an important and long-awaited step in the fight to extend broadband to 10 cities and 17 rural townships across the largely agricultural region.

The groundbreaking ceremony marked the start of stage one of a two-stage project that will take five to six years to complete. By the end of 2015, the RS (Renville-Sibley) Fiber Cooperative plans to connect 1,600 homes and businesses with fiber, with 90 percent of its service area covered by high-speed wireless. It hopes to connect another 2,600 homes and businesses by the end of 2016, with the eventual goal of reaching 6,200 potential customers. At the event, Toby Brummer, RS Fiber General Manager, highlighted the importance of broadband Internet to rural development:

This technology is to this generation what rural electric and rural telephone was to generations years ago.

The RS Fiber Cooperative is member-owned and member-driven, led by a Joint Powers Board that formed in 2009. In order to provide FTTH to the rural locations across the two counties, the cooperative partnered with a network operator, Hiawatha Broadband Communications, that already serves 17 communities in southeast Minnesota. RS Fiber will offer residential Internet speeds up to 1 gigabit for $129.95. It will also connect schools, bolster home and farm security systems, and even facilitate high school sports broadcasts and telemedicine initiatives.

The Benefits of, Lessons From, SandyNet - Community Broadband Bits Episode 167

Two of the stars from our video on SandyNet in Oregon, join us this week for Community Broadband Bits episode 167. Sandy City Council President Jeremy Pietzold and IT Director Joe Knapp (also SandyNet General Manager) tell us more about the network and recent developments as they finish connecting the majority of the City to gigabit fiber. 

We talk about the challenges and lessons learned along the way as they transitioned from running a Wi-Fi network in some areas of town to all areas of town to overbuilding the wireless with fiber optics. Jeremy also discusses more of a story we recently reported on SandyNet's business services, which are the lowest cost, highest capacity deals we have seen. 

This show is 30 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."

New Reference From U-W Extension A Library Must-Have

The University of Wisconsin-Extension recently released Broadband Policies and Regulations for Wisconsin Stakeholders, a good addition to your digital library, especially if you have in interest in Wisconsin and midwestern broadband issues.

The document provides case studies and an in-depth list of references addressing:

  • Public-private partnerships
  • Local ordinances
  • Technology councils
  • Community engagement
  • Local government telecommunications services
  • Unique efforts to increase adoption

While many examples hail from Wisconsin communities, the authors also provide information from other states and offers links to information such as local government broadband resolutions, tower agreements between municipalities and private internet service providers, successful applications for state and federal grant funds. 

The Broadband Policies and Regulations for Wisconsin Stakeholders is well organized and indexed. You can download the PDF, or access the online flip book for quick reference.

SandyNet Sharing Awesome Gig Deal With Local Businesses

SandyNet has introduced some incredible fiber connectivity deals for local businesses. Like residents, businesses can now get gigabit service for $60 per month and 100 Mbps for $40 per month. The utility also continues to offer enterprise connections, with rates established on a case-by-case basis.

Speeds are symmetrical which can be a critical factor for businesses that often must upload large amounts of data to work with clients. 

Until SandyNet began to deploy the FTTH network, business customers that needed more bandwidth relied on the town's dedicated Wi-Fi service which offered advertised speeds of up to 30 Mbps download, however, that cost $175 per month.

Smaller businesses could sign up for traditional Wi-Fi - the system residents also used - but speeds maxed out at only 5 Mbps or 10 Mbps download. Prices were $25 per month and $35 per month respectively.

Wi-Fi business customers can now make the switch to fiber for no extra fee. Those that are new customers to SandyNet will need to pay a one-time $350 connection fee.

Hungry for more on the SandyNet story? For more on how they did it, check out our video Gig City Sandy: Home of the $60 Gig. You can also listen our interview with Joe Knapp in Episode #17 of the Community Broadband Bits podcast. 

More Feasibility Studies in Colorado and Ohio

Two more communities in Ohio and Colorado are seeking information through broadband feasibility studies.

The Aspen Daily News recently reported that Pitkin County has already completed phase one of its feasibility study. This past spring the primary Internet path coming into Aspen via CenturyLink fiber was severed causing widespread outage for 19 hours. The first half of the feasibility study sought ways to introduce a redundant path.

The first option was a 100 percent fiber solution and a hybrid fiber/microwave solution was proposed as an alternative. For option A, the consultants recommended a fiber backbone along Highway 82 with fiber lines running into Redstone, Marble, and Snowmass. Microwave could serve nearby Fryingpan Valley. Option B would travel the same route but make more use of microwave.

Early cost estimates:

Estimated operating costs for option A would be more than $122,000 per year, while option B would cost just over $92,000 annually. Yearly maintenance costs for the fiber-only model were projected at just under $62,000, and the hybrid model would run more than $123,000.

A survey or residents in several communities in Pitkin County indicated most are not happy with speeds or reliability of current Internet access. Approximately half of the region does not have broadband as defined by the FCC at 25 Mbps download and 3 Mbps upload. 

[One of the consultants] said that according to the survey, customer satisfaction in the area is “significantly low.” It also noted that 34 percent of responders said they run a business out of their home, and an additional 10 percent replied that they will start up an in-house business within the next three years.

Adams relayed that more than half of respondents felt that the county should build some sort of “state-of-the-art communications network.”

“It’s clear that the residents would like to see the county do something,” he said.