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First Muni Fiber Net in Maine - Community Broadband Bits Episode 115

By building a fiber line to allow some local businesses to get next-generation Internet access, Rockport became the first municipal fiber network in the state of Maine. Town Manager Richard Bates joins us for episode 115 of the Community Broadband Bits podcast. 

We discuss the financing behind the network and their partnership with local Internet Service Provider, GWI, to improve access to the Internet. Bates also explains how they had to ask voters for authorization to use a tax-increment financing approach to paying for the network to spur economic development. Nearby communities have been watching to see what happens.

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 The Bomb Busters for the music, licensed using Creative Commons. The song is "Good To Be Alone."

Muni Fiber in Rural Massachusetts - Community Broadband Bits Podcast 113

Though much of western Massachusetts has poor access to the Internet, the town of Leverett is in the midst of fiber build that will offer a gigabit to anyone who wants it. Peter d'Errico, on the town Select Board, has been part of the project from the start and Chairs the Broadband Committee. He joins us for Episode 113 of the Community Broadband Bits podcast.

He and I discuss the great need for the project and inaccurate broadband maps that overstate availability in the region. We discuss the role of the "municipal light plant" law that gave them the necessary authority to invest in the fiber. But more interestingly, we talk about how they have structured the financing and prices for subscribers. The network will be repaid both with the revenues from subscribers and a modest bump in the property tax. 

The kicker is that many households will see their taxes increase a little but the amount they spend on telecom will decrease substantially, resulting in more money in their pockets each month. We have written about Leverett often over the years, the archive is here. Read the Leverett FAQ here

This show is 18 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 Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Rockport Builds Maine’s First Municipal Network

Rockport, a coastal town of just 3,300, became a statewide leader last month by launching Maine’s first municipal broadband network. Offering symmetrical gigabit speeds to businesses and residents, Rockport’s network is a carrier-neutral dark fiber system, with local private provider GWI offering retail services. 

The reach of the network is limited, as it consists of only 1.2 miles of fiber. While only about 70 homes and businesses currently have the option to purchase a connection, GWI offers symmetrical gigabit per second internet access for just $69 per month and the city has left the option open to expand the network in the future.

As noted in a Bloomberg View article on the network, it massively outpaces the only broadband competitor in Rockport, Time Warner Cable. Time Warner also offers a $70 service package, but its download speeds are 20 times slower and its upload speeds 200 times slower.  

The network was the product of a partnership between the town board, GWI, the University of Maine system, and Maine Media Workshops + College. Maine Media is a nonprofit college with 1,500 students learning photography, videography, and other digital media skills, and has a large economic footprint in such a small town.

Students’ coursework requires the storing and sharing of massive files, something that was previously difficult or impossible to accomplish given limited network capacity. Town officials are hoping that the new network will not only allow students to learn more easily, but enable them and others to establish small businesses in town.    

U.S. Senator Angus King, a vocal champion of broadband access, was among the officials on hand last week for the official unveiling ceremony. Speaking to the need for greater internet access, Senator King stated:

“In my opinion it’s exactly like water, it’s exactly like electricity, it is a public utility that is necessary in order for our economy and our country to flourish…We want to work where we live, rather than live where we work."

Rural Indiana Looks to Tax Increment Financing to Build Fiber Networks

Wabash County, Indiana wants to expand its access to high speed internet through a fiber optic network build out, and is planning to use a distinctive financial tool to do so. The Wabash County Redevelopment Commission has begun the process of assigning a special Economic Development Area designation for the purpose of helping to finance new fiber deployment through parts of the mostly rural county of 33,000 people.

Utopia at a Crossroads: Part 3

This is the final installment of a three part series, in which we examine the current state of the UTOPIA network, how it got there, and the choices it faces going forward. Part I can be read here and Part II here

In Part I of this story, we laid out the difficult situation the open access UTOPIA network finds itself in and how it got there. Part II gave the broad outlines of Macquarie’s preliminary proposal for a public-private partnership to complete and operate the network. The numbers we deal with here are mostly from the Milestone One report, and assumed the participation of all 11 cities. It should be noted that since five of eleven UTOPIA cities opted out of proceeding to Milestone Two negotiations, the scope and scale of the project is subject to change. The basic structure of the potential deal is mostly set, however, allowing us to draw some reasonable conclusions about whether or not this deal is good for the citizens of the UTOPIA cities.

Let’s first turn to why Macquarie wants to make this investment.  This would be the firm’s first large scale broadband network investment in the U.S., allowing it to get a foothold in a massive market that has a relatively underdeveloped fiber infrastructure. To offset network build and operation costs, it will also be guaranteed the revenue from the monthly utility fee, which my very rough calculations put between $18 and $20 million for the six cities opting in to Milestone Two (or between $30 and $33 million per year for all 11 cities) depending on whether the final fee ends up closer to $18 or $20 per month.

Westminster Budgets for Open Access Fiber Network

On Monday, May 12, Westminster moved another step closer to deploying its open access citywide fiber network in Maryland. The Common Council approved a FY15 budget that includes $6.3 million for an FTTH network. The Carroll County Times reported that the $64.8 million budget was adopted 5-1. The opposing Council Member voted no on a different issue.

Last summer, the community launched two pilot projects; they installed fiber in a local retirement community and in the Westminster Technology Park. Community leaders decided to expand the pilots to the Air Business Center. They are already seeing results, with a women's fashion distribution center that decided to move from New York City to Westminster for the network.

We touched base with Dr. Robert Wack, Westminster Common Council President and the person spearheading the project. Dr. Wack told us businesses have been clamoring to get fiber service. Connectivity in the area is so bad, "they are desperate."

Community leaders want to connect 9,000 homes and 500 businesses. Dr. Wack told us the community expects to break even in 3 - 5 years; the build out should be complete in 2 years. Westminster expects to release an RFP for construction within the next week. They will release an RFP for a network operator in June.

Another Carroll County Times article described the basic plan for the project:

Westminster’s fiber network will be a “last mile” project, with the city paying to install “dark fiber” to the door of every home and business in the city and connect to the county’s fiber optic backbone, the “middle mile,” according to Wack.

Dark fiber is fiber optic cables which are connected but not in use, or “lit,” he said.

Next City Interviews Christopher on Municipal Networks

Nancy Scola, a reporter with Next City, wanted to know about municipal networks. Naturally, she turned to our own Chris Mitchell. Nancy and Chris discussed some of the most pressing issues swirling around municipal broadband. Nancy begins:

At the moment more eyes than usual are focused on high-speed Internet’s uncertain future in the United States — from “open Internet” rules and municipal-run broadband to worry over Comcast’s pending Time Warner Cable merger.

Sitting in the middle of the debate is Christopher Mitchell, the director of the Telecommunications as Commons Initiative of the Institute for Local Self-Reliance. He has long advocated for city-run broadband networks such as those found in Lafayette, Louisiana, Chattanooga, Tennessee, and Bristol, Virginia.

Nancy: What’s the elevator pitch for municipal broadband?

Chris: That it’s a network responsive to local needs. Rather than decisions being made in a corporate boardroom on Wall Street, they’re being made by someone in town based on what’s going to benefit the community the most. And that’s going to be faster speeds, lower prices, better reliability, better customer service, those sorts of things.

Nancy and Chris also touch on issues such as municipal Wi-Fi, myths propagated by cable and telephone company lobbyists, and broadband as a utility. 

Kansas Legislature Introduces Bill to Limit Internet Investment

Get updates to this story here. With Senate Bill No. 304 [pdf], the Kansas Legislature will consider a bill to revoke local authority to build networks. If passed, this bill would create some of the most draconian limits on building networks we have seen in any state. The language in this bill prohibits not only networks that directly offer services but even public-private partnerships and open access approaches. This is the kind of language one would expect to see if the goal is to protect politically powerful cable and telephone company monopolies rather than just limiting local authority to deliver services. The bill states that the goal is to
encourage the development and widespread use of technological advances in providing video, telecommunications and broadband services at competitive rates; and ensure that video, telecommunications and broadband services are each provided within a consistent, comprehensive and nondiscriminatory federal, state and local government framework.
Yet the bill does nothing but discourage investment, with no explanation of how prohibiting some approaches will lead to more investment or better services. It does not enable any new business models, rather it outlaws one possible source of competition for existing providers. The bill contains what will appear to the untrained eye to be an exemption for unserved areas. However, the language is hollow and will have no effect in protecting those who have no access from the impact of this bill. The first problem is the definition of unserved. A proper definition of unserved would involve whether the identified area has access to a connection meeting the FCC's minimum broadband definition delivered by DSL, cable, fiber-optic, fixed wireless or the like. These technologies are all capable of delivering such access. However the bill also includes mobile wireless and, incredibly, satellite access. As we have noted on many occasions, the technical limits of satellite technology render it unfit to be called broadband, even if it can deliver a specific amount of Mbps. Satellite just does not allow the rapid two-way transmitting of information common to modern Internet applications.

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]

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.