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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:
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.
New Report on Bandwidth Caps From Open Technology Institute
The Open Technology Institute (OTI) at the New America Foundation recently released its report on bandwidth caps. "Artificial Scarcity: How Data Caps Harm Consumers and Innovation" is the latest warning about an issue with grave implications. The PDF is now available to download.
Last November, the Government Accounting Office (GAO) released a report [PDF] with serious comments on how ISPs might abuse their power through bandwidth caps. In that report, the GAO strongly suggested the FCC take action.
This report by Danielle Kehl and Patrick Lucey further examines how this profit grabbing technique from the big ISPs impacts consumer decisions and usage.
From the OTI press release:
In this paper, we examine the growth and impact of usage-based pricing and data caps on wired and mobile broadband services in the United States. We analyze the financial incentive that Internet service providers (ISPs) have to implement these usage limits and discuss research that demonstrates how these policies affect consumer behavior. In particular, we explain how data caps can make it harder for consumers to make informed choices; decrease the adoption and use of existing and new online services; and undermine online security.
It is also increasingly clear that data caps have a disproportionate impact on low-income and minority populations as well as groups like telecommuters and students. In the conclusion, we urge the Federal Communications Commission (FCC), particularly as the new Open Internet Order goes into effect, to open up a serious inquiry into whether data caps are an acceptable business practice.
In addition to their own data and conclusions, Kehl and Lucey provide information to many other resources that tackle the implications of bandwidth caps. As consumers' need for bandwidth increases with their changing Internet habits, this topic will only become more pressing.
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.
In West Texas, "Hub City" Conducts Fiber Feasibility Study
A feasibility study conducted by the Lubbock Power & Light (LP&L) Electric Utility Board this April discussed several potential benefits of installing a fiber optic cable in the City of Lubbock, Texas. Charles Dunn, a member of the Utility Board, proposed installing fiber optic cables alongside the city’s utility lines, which are currently being buried underground as part of a three-phase, $1.9 million downtown redevelopment initiative.
A fiber optic cable, Dunn contended, could increase Internet speeds hundredfold (from a max speed of around 10 Mbps to one above 1 Gbps), attract high tech companies to the city, and induce Texas Tech University students to stay in Lubbock after they graduate. In Lubbock, where Internet speeds run about 35 percent slower than they do in the rest of the state, a fiber network could be a boon for businesses and residents alike.
According to the April feasibility study, the fiber project might not even eclipse $100,000. LP&L would shoulder the costs of the project by drawing from its own budget. Both Dunn and LP&L director of electric utilities, David McCalla, believe that fiber would greatly benefit the community.
CEO of McDougal Companies, Marc McDougal, also argued in favor of the installation of the cable. From Fox 34 News:
Quite honestly, it would give us something that very few cities have... It would give us a huge advantage in another market to recruit businesses for downtown Lubbock.
Co-Mo Cooperative Facing Off With Subsidized CenturyLink in Missouri
Parts of rural central Missouri have some of the fastest Internet service available thanks to fiber service from Co-Mo Electric Cooperative and United Electric Cooperative. The two have worked together to bring gigabit FTTH to cooperative members in central Missouri. Now that they have proven that people and businesses want high capacity connectivity, CenturyLink is about to enter the scene. The company plans to use millions of dollars in Connect America Funds (CAF) to build in areas already served by the cooperatives.
After years of planning and hard work, Co-Mo and United are not taking the threat lightly. They have filed challenges with the Wireline Competition Bureau but CenturyLink's Inside-the-Beltway power has thus far served them well. The Wireline Competition Bureau denied a challenge by Co-Mo and United but the decision appears to contradict established policy. Co-Mo and United recently appealed to the FCC asking them to review the Bureau's Order allowing CenturyLink to use over $10 million in CAF. [Read the Application for Review here.]
CenturyLink argues that Co-Mo and United are not providing voice services because they are working with a third party, Big River Telephone Company, to bring VoIP to members. If this were true, it could disqualify them as providers and lend credence to the argument that there are census blocks in the area that are not served. Because Co-Mo and United install, take phone orders for subscribers, and service phone switches, they should qualify as a provider of land line voice services.
CenturyLink also asserted that census block information showed areas unserved even though those areas now have access to fiber connectivity from Co-Mo and United. General Manager of Co-Mo Connect Randy Klindt told us that the timing of their build prevented Co-Mo from providing an active customer in each block, but that service is available to people who live there. Even though it is not a requirement, Co-Mo and United now have detailed information that prove people in those census blocks can, and do, take FTTH service.
Yet Another Homeowner Led Astray By Giant ISP; Responds with Muni Fiber Initiative
Last month, we highlighted the story of Seth, a Washington state homeowner forced to put his home up for sale due to a perfect storm of sloppy customer service, corporate bureaucracy, and terrible Internet policy. Now meet Dave Mortimer from Michigan.
Dave is another person in a similar situation, reports Ars Technica. In 2013 incumbent AT&T told Dave three separate times that the house he had his eye on in rural Lowell had U-verse fiber network capabilities. Their website verified what customer service represenatives told him. Dave is an IT professional and wanted the opportunity to work from home. He must be on call while not in the office and so requires a fast residential Internet connection.
After buying the home and moving in, AT&T backpedaled. Actually his best option was DSL offering 768 Kbps. Oops!
Working from home was a struggle. After Dave complained to AT&T, the FCC, the FTC, and the state Public Service Commission, the provider eventually updated their website but that didn't help Dave. He limped along but seldom worked from home as he had planned to do from the start. His office is 30 minutes away.
Finally, AT&T billed him for a phone line he never requested leading to an auto-payment error and a shut-off of his Internet service. That was enough for Dave. He approached a local wireless provider Vergenness Broadband and, working with the installer, attached the receiver to a tree some distance from his house and buried the extra long cable in cracks in his driveway to his house. Dave now pays $60 per month and gets the 3 Mbps download / 1 Mbps upload he was promised.
Dave is no where near the 45 Mbps he had hoped to obtain from the phantom U-verse, but he has this to say about his local provider:
“This is a night and day difference since switching from AT&T," he said. "Everything that AT&T did wrong, this small local company is doing right.”
Dave was fortunate to have a local company able to bring him service, even though it is not broadband as defined by the FCC. Nevertheless, he considers this a temporary fix and the best he can get for the time being.
Ammon Brings Local Connectivity to Idaho Schools as State Education Network Goes Dark
The City of Ammon's municipal fiber network recently stepped in to provide primary broadband access for School District 93 as the state's educational network went dark reports Local News 8. Watch the video of local coverage below.
When a judge ruled last year that the Idaho Education Network (IEN) contract between the state Department of Administration was void, an education broadband crisis loomed across the state. As the drama played out, however, local networks such as Ammon's muni, have come to the rescue to keep students connected.
Ammon Mayor Dana Kirkham described an attitude characteristic of municipal networks:
"I think it's just something we do in the spirit of collaboration, and I think that's always important because when we talk about the school district and the city it's all the same people, and so anytime we can keep costs down it benefits everyone involved," Kirkham said.
CenturyLink and Education Networks of America (ENA) were providers under the contract voided last year. As CenturyLink and ENA cut off service to schools, forcing them to negotiate their own contracts, they have discovered better, more affordable broadband from local providers like Ammon. A recent Idaho State Journal reported on several school districts:
The state, under the now-void IEN contract, had been paying Education Networks of America more than $6,000 a month for a 20 Mbps Internet service to Rockland School District. The school district will pay less than a third of that cost for a new 100 Mbps service next year.
The State Journal also discovered that numerous school districts had used fiber optic service from local providers but were forced to switch to slower service in order to obtain the IEN reimbursement. In order to get the reimbursement, West Side School District had to switch from fiber from Direct Communications, a local company, to a slow copper T1 connection from CenturyLink:
Carl Junction Partnering for Wi-Fi in Missouri
Carl Junction has been looking for a way to improve connectivity in its southwest corner of the state for several years. Plans for a fiber network did not come to pass, but the community has found a private partner to bring ubiquitous high-speed Wi-Fi to town.
The City Council voted unanimously to approve a deal with Aire Fiber, reports the Joplin Globe, for a basic plan that will offer service for $49.99 per month. Users will not be constrained by data caps, speeds will be up to 50 Mbps download and 10 - 15 Mbps upload, and the network will provide service to each address in town. Installation is $99 per address; rates will be the same for businesses and residences. There are no long term committments. The partners have launched their campaign to get signups online seeking 289 subscriptions to get the project off the ground.
Aire Fiber will also provide free Wi-Fi to select locations in town such as the Community Center.
Steve Lawver, Carl Junction City Administrator, told us that the city will receive 10 percent of the gross revenue from the network. The city will purchase the equipment and provide facilities on which Aire Fiber will mount the equipment. Air Fiber will handle installation, management, and all technical aspects required to keep the network up and running.
If the network picks up 10 percent of the market, both partners will break even. KOAM reports that the system will cost from $400,000 - $450,000 to deploy. City officials expect to have it serving the community by mid-summer.
Even though AT&T and MediaCom both have a presence in Carl Junction, neither serve the entire community. City leaders told KOAM they hope to create better consistency of service throughout the community with this partnership:
"We think this is a big step forward for the city — now high-speed broadband Internet connection will be available to all citizens of Carl Junction, no matter what their address is.''
Grover Beach Chooses Local Partner to Improve Local Connectivity for Businesses
After several years of considering options for a municipal network, the community of Grover Beach, California, is improving local connectivity options through a collaboration with private partner Digital West.
According to the San Luis Obispo Tribune, the City struck a deal last fall with the local firm that will provide gigabit connectivity to local business customers. A city staff report states that Grover Beach will install and own a series of conduit that will house fiber owned by Digital West.
The company, a data storage and web hosting firm located in nearby San Luis Obispo, will manage the fiber network. Digital West will lease conduit space from the city for 5.1% of its gross revenue from its operation of the private portion of the system. The initial lease is for a 10-year term. The company will also transfer ownership of some of the fiber to the city for public purposes. San Luis Obispo (SLO) County also wants to connect its facilities in the area and will contribute to the cost of the project. It appears as though SLO County will use the fiber provided to Grover Beach.
Grover Beach will contribute $500,000; SLO County will contribute $268,000; Digital West will contribute $159,000 to the total cost of $927,000 of the project. The parties agree that the city's contribution will be capped at $500,000. The staff report recommends an interdepartmental loan to finance the city's portion of the conduit installation.
Digital West has been an instrumental player in the city's quest for improved connectivity for several years. The company provides Internet service in SLO County and manages a private network offering connectivity, colocation, and cloud services to commercial clients.
Grover Beach is also the location of the Pacific Crossing trans-Pacific fiber cable, connecting to Shima, Japan. In 2009, Digital West began working with Grover Beach to find ways to take advantage of the pipe. The city and Digital West have sence developed a Technology Master Plan and an Implementation Plan.