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Spanish Fork Upgrading to Fiber in Utah

Spanish Fork Community Network (SFCN) recently announced it is upgrading its cable network to a fiber optic network. The network has already started improving services by increasing speeds for the highest tiers at no extra cost reports the Herald Extra.

Residents and businesses in the town of approximately 37,000 have relied on the municipal cable network since 2001. Over the past 14 years, the network has come to provide triple-play to 80 percent of Spanish Fork homes.

Officials kicked off construction on September 3rd:

“We’re excited this is the next step for the SFCN network," [SFCN Director John] Bowcut said. "We’ve always planned on doing fiber to the home, and now we’re in the fiscal position where we can go ahead and install that for our customers."

Customers who choose to remain with the lowest tier - 12 Mbps / 3 Mbps - will remain on the coax infrastructure, says Bowcut, but will be switched to fiber if they choose to upgrade to a higher tier.

The city made its last bond payment for the existing system this year and will use newly available funds from retiring the debt to fund the upgrade. Assistant City Manager Seth Perrins describes the early deployment as "soft" so officials can obtain a better understanding of cost demands, construction management, and how long the project will take. They estimate the project will be complete by 2020.

According to Bowcut, Premium service that is now 120 Mbps / 15 Mbps will transition into symmetrical gigabit service for around $68 per month. PLUS service, currently 60 Mbps / 10 Mbps, will be upgraded to 100 Mbps symmetrical for approximately $45 per month. The Starter tier at 12 Mbps / 3 Mbps will remain $35 per month. All three tiers offer discounts when purchased with TV service.

Read more about Spanish Fork, one of the early municipal networks, and listen to Chris interview John Bowcut during Episode #60 of the Community Broadband Bits podcast. We have an updated interview with John ready for an upcoming podcast.

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.

Bald Head Island Reopens RFP to Find The Right Partner

After searching for a suitable partner, the Village of Bald Head Island in North Carolina has reopened its RFP for a gigabit fiber network. Apparently, the community received four responses but no proposal provided the level of detail they require. 

In order to give respondents another opportunity and to offer new candidates a chance, Bald Head Island leaders chose to release the RFP a second time with additional questions and a responsibility matrix. No response will be considered without answers to these new appendices. All three documents are available on the Village website.

The Village of Bald Head Island is home to approximately 160 year-round residents, but numbers swell to 7,000 during the busy tourist season. Vacation homes and part-time residents bring the potential fiber service area up to 2,500 but incumbents AT&T and Tele-Media don't see the value of bringing fiber to such an environment. The StarNews Online described community leadership's frustration and decision to move forward:

"Broadband is not available on Bald Head Island," said Calvin Peck, the village's manager. "It just isn't, and none of the current providers have plans to invest the money to make it available, so the village council feels it's an important enough issue to spend village resources to make it happen."

While Bald Head Island looks for a partner it also plans to ask voters if they agree to pursue better broadband. Voters will decide on November 3rd if they support a $10 million bond issue. Community leaders will focus on revenue bonds, one of the most common ways to finance municipal network deployment. This mechanism shifts repayment to those who use the network, reducing financial risk to the community at large.

Clearly community leaders understand that the time to act is now:

Ketchum Will Install Conduit Only; Cox's Role?

In Idaho, Ketchum appears to have abandoned its flirtation with a municipal fiber optic network, choosing instead to lay conduit as a way to encourage private investment. The decision is an interesting result that suggests incumbent Cox Communications has considerable power over local decision making.

Readers may recall how in May 2013 the local broadband advisory committee booted Cox representatives off the roster. Residents began to receive telephone calls which amounted to push polls from the incumbent cable provider; the then-Mayor would would have none of that. Even though communities leaders had not stated they were considering a municipal network, they were put off by Cox's underhanded approach.

Since then, the administration has changed and it appears this time Cox has successfully shanghaied the decision. Cox is back on the committee establishing a plan and pressing for the result we would expect. From a Mountain Express article:

Guy Cherp, vice president of operations for Cox Communications, was part of the strategic planning committee. He said the group concluded that the city should not become a public Internet provider, as the cost would be exorbitant and high bandwidth is not needed by most Wood River Valley businesses. Those who desire it, he said, can pay for private installation—and several local businesses do.

Ketchum’s Internet service is as good as it is anywhere, Cherp said—speaking to the 2013 Magellan report, which stated that traditional broadband users complained of inconsistent speed and reliability, as well as slower service during peak Internet times.

“The notion that Ketchum is lagging behind, we don’t see that,” he said.

Chanute's FTTH Project on Hold Indefinitely

Changes in leadership in Chanute have put the community's FTTH plan in suspended animation. In April, the City Commission decided to delay financing shortly before the scheduled bond sale. It is unfortunate that residents and businesses will lose the opportunities the fiber deployment would bring. Nevertheless, they deserve the right to make their own choices, good or bad.

The community of Chanute deployed a network incrementally with no borrowing or bonding in order to improve efficiencies, save public dollars, and control connectivity for municipal facilities. Local schools and colleges, struggling to compete, began taking advantage of technology in the classroom and expanded distance learning. The network eventually created a number of economic development opportunities when community leaders started providing better connectivity to local businesses. We told Chanute's story in our 2013 report "Chanute's Gig: One Rural Kansas Community's Tradition of Innovation Led to a Gigabit and Ubiquitous Wireless Coverage." 

Chanute made history when it was the first municipality in Kansas to obtain permission from the Kansas Corporation Commission to issue bonds for the project. They also became the first municipality in the state to seek and receive "eligible telecommunications carrier" (ETC) status. Chanute was awarded over $500,000 in Rural Broadband Experiment Funds from the FCC. Whether or not they will still be able to take advantage of those funds remains a question. After taking action and putting so many of the necessary pieces in place, it is disheartening to see the plan abandoned by politicians.

Regardless of the future of the FTTH project, Chanute has the infrastructure in place to encourage more economic development, connect community anchor institutions, and allow the community to control its own costs. The FTTH project is still a possibility.

Islesboro, Maine, Voters Approve First Round of Muni Funding

Islesboro residents voted on May 30th to move forward with their municipal network plan. According to the Islesboro Press Herald, approximately 75 percent of voters attending the annual town meeting approved a motion to spend $206,830 on an engineering study and contractor search. Approximately 200 residents attended.

As we reported in March, the community has been working since 2012 on a plan for a fiber network to improve connectivity for businesses and the almost 600 residents on the island. The infrastructure will belong to the Town of Isleboro; GWI will offer services via the network. The entire project estimate is $2.5 - $3 million to be funded with a municipal bond.

Many of the island's residents now obtain Internet access via DSL from Fairpoint, which has been described as spotty and unreliable, for $20 - $70 per month. GWI already operates on the island, offering wireless service.

This is the first in a several step approval process:

Town officials plan to hold a second public vote in the fall on 20-year municipal bond for up to $3 million that would fund the network’s construction, [Selectman Arch Gillies] said.

Completion is scheduled for the end of 2016.

“We’re a community intent on keeping up with the world, and maybe getting ahead of the world,” [Gilles] said.

Lessons Learned from Community Outreach in Gilberts, Illinois

Earlier this year, we reported on the Village of Gilberts, Illinois, where voters defeated a measure to approve general obligation bonds for a municipal network project. Our story got the attention of Bill Beith, Assistant Village Administrator from Gilberts who contacted us to talk about the project and provide detail on their efforts to educate the voters prior to the election.

The project would have raised property taxes 1.8 percent or approximately $150 per year on a property with a $250,000 market value. Even though the network would have been a publicly owned asset, Beith believes the idea of any new taxes defeated the measure. As the community considered the project, voters stated repeatedly that Comcast or one of the other incumbents should pay for deployment of infrastructure. Unfortunately, the Village had approached incumbents who had no interest in building in Gilberts. They felt the investment would not pay off in a community that is home to about 6,800 people.

The proposed project was to be deployed along side a private fiber network. When the developer of a new housing development learned that fiber significantly increases the value of real estate, he chose to include it to each new home. He also chose to bring the network to a nearby school along with several public safety and municipal facilities at no charge to the Village. 

The project on which voters denied funding would have extended fiber to the rest of the community. According to Beith, the developer still plans to continue his fiber build in an incremental fashion. In addition to the homes in the new housing development, he will focus on commercial connectivity in the Village of Gilberts.

Even though the measure failed in April, the Village will continue to explore ways to work with the developer. According to Beith, he and other advocates for improving connectivity in Gilberts walked away with some valuable lessons for the future.

Gilberts Voters Say No to Tax Increase for Muni

On April 7th, voters in Glberts, Illinois, chose not to raise taxes to deploy a municipal fiber network, reports the Daily Herald. According to the article, 81 percent of ballots cast voted against the proposal. Voter turnout was low, with only 682 ballots cast out of 4,002 registered voters in town.

As we reported last month, local developer Troy Mertz plans to deploy fiber to each structure in a new housing development, The Conservancy. His fiber company will also install fiber to nearby municipal and public safety buildings and the Gilberts Elementary School. The plan was to issue General Obligation (GO) bonds to finance a publicly owned network throughout the rest of the community. The proposal would have raised taxes approximately 1.8 percent or $150 per year on properties with a market value of $250,000.

For the developer the plan will remain the same:

Mertz still plans to go ahead and connect The Conservancy's planned fiber optic network to municipal and public safety buildings plus Gilberts Elementary School, saying it was built into his development plans.

"The goal of village was always to getting fiber to our industrial areas," said Gilberts Village President Rick Zirk. "As a community, we asked the rest of the village, 'Do you want the same service and the same options that the new part of town and the industrial park?' And it seems that they don't want to pay for it."

There is a definite lesson here for any other communities considering a similar plan - educate the voters and make sure they are excited about it! From what we can tell, there was little effort to make people aware of the plan and the turnout for the vote suggests that no one was particularly excited to make it happen.

Small Illinois Town Will Vote On Fiber Investment in April

The Village of Gilberts, Illinois, will ask voters in April to authorize up to $5 million in General Obligation bonds to deploy a FTTH network reports the Daily Herald. GO bonds are rarely used for network deployment but often used for public works projects and other publicly owned assets. Due to the funding mechanism in Gilberts, the network would be publicly owned.

"It's something that is not readily available in other communities," Village Administrator Ray Keller said. "It would set us apart and put us on a path to better meet the needs of our residents and businesses as their demands and needs for technology grows."

The community, home to 6,800 people, has experienced rapid population growth since 2000. At that time only 1,200 people lived in this northeast Kane County village.

According to the article and January Board of Trustee minutes [PDF online], the bond issue would increase property taxes 1.8 percent on most tax bills. Properties with a market value of $250,000, which is most common in Gilberts, would pay an additional $150 per year or $12.50 per month to fund the infrastructure deployment. There are approximately 2,400 taxable properties in Gilbert today but as more properties are built, each property owner's share would decrease. 

This is the second time the village has planned for a fiber network to improve connectivity throughout the community. In 2013, Gilberts entered into an agreement with i3, a British company that eventually folded, to deploy fiber using sewers as conduit. In that plan, i3 would have owned the fiber network.

Developer Troy Mertz is spearheading the project. His company is investing in a new housing development that will eventually include an additional 985 new homes. As part of that development and independent of the municipal fiber project, Mertz is installing fiber to each structure at his own expense. His company, iFiber Networks will also run fiber to nearby municipal and public safety buildings and the Gilberts Elementary School. According to the Daily Herald, iFiber is not charging the city for bringing fiber to its facilities or the school.

Waverly: The Next Gigabit Community in Iowa

Remember Waverly, Iowa? We introduced you to the town of 10,000 back in 2013 when they revived the community choice to develop a telecommunications utility. Recently in February, the Waverly Light and Power Board of Trustees approved a long awaited gigabit project reported American Public Power.

According to a WLP press release, the $12 million project will be financed with revenue bonds which have already been secured. As we note in our Financing Municipal Networks fact sheet [PDF], this is one of the most common ways of funding deployment. Revenue from subscribers pays the private investors that buy the bonds used to finance the deployment.

Construction is scheduled to begin in May and WLP expects to begin serving customers in 2016. WLP serves approximately 4,800 customers in town and in the rural areas around Waverly. Early plans include incentives for early sign-ups such as a free first month of service and a reduced installation fee. The fiber network will also be used for smart metering.

From the WLP press release:

“It may have taken 15 years of planning and hard work to finally come together, but knowing what’s to come, it’s worth the wait,” explains Ael Suhr, Waverly Light and Power Chairman of the Board. “This approval opens the door for new alternatives for high-speed internet, cable and phone services in Waverly for both residents and businesses.”