This week on the show Christopher is joined by Mason Carroll (Monkeybrains), Deborah Simpier (Althea Networks), and returning champion Travis Carter (US Internet). 

The group collectively imagines what they would recommend to the FCC if they were called upon to help facilitate urban wireless deployment in the name of more affordable, equitable Internet access. They dig into different approaches, dissect the 5G hype, and mull the recent opportunities offered by Citizens Broadband Radio Service (CBRS). Putting on their private Internet Service Provider (ISP) hats, Mason, Deborah, and Travis tell Christopher what they'd be looking for from cities considering building publicly owned infrastructure — conduit or fiber — in the name of incenting more competition. Finally, they spend some time talking about the particular challenges and solutions presented to urban wireless by apartment complexes and other types of multi-dwelling units (MDUs). 

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After years of fielding complaints from residents about the speed, reliability, and poor customer service of the city’s single wireline broadband provider, Springboro, Ohio (pop. 19,000) has decided enough is enough. Over the next year, the city (situated ten miles south of Dayton) will build a 23-mile fiber loop for municipal services and, at the same time, lay five additional conduits to entice additional Internet Service Providers (ISPs) to come in and offer service, stimulating competition and economic development in the region moving forward.

A Fiber Master Plan

City Manager Chris Pozzuto laid out the plan for the city council, which staff had been working on for the last half year, back in July. It was driven in part by the criticism his office had fielded for years about the incumbent wireline service provider (the two satellite providers also prompted plenty of complaints of their own). Out of a desire both to provide residents with symmetrical gigabit access and stimulate economic development on a 200-acre commercial plot, Pozzuto started talking with regional partners and putting together an alterative.

The city’s Fiber Master Plan [pdf] calls for a 72-strand, 23-mile loop to be built around Springboro, along every major street and thoroughfare and up to the entrance of every neighborhood. Via microtrenching, six conduits will be laid — one for the city, and the remaining for up to five new ISPs to compete for service. 

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Last December we wrote about Connecticut’s long-awaited victory by court affirmation in the fight to let its cities attach to utility poles at no cost in pursuit of spurring municipal broadband efforts. A similar effort seems to have stalled in its neighbor to the north, with HD 4492 languishing in the Massachusetts Legislature’s Telecommunications, Utilities and Energy Committee. 

The bill, “An Act To Establish Municipal Access To Utility Poles Located In Municipal Rights-Of-Way,” is simple. It modifies Chapter 166, Section 22a of the state’s General Laws to eliminate pole attachment fees for cities working to build broadband networks to reach “unserved or underserved areas” (as defined by the Massachusetts Broadband Institute (MBI)), shifting the expense instead to the current pole owner(s). John Barrett introduced the bill and two dozen fellow legislators co-signed it. It calls for: 

Notwithstanding any provision of law to the contrary, for the purpose of safeguarding access to infrastructure essential to public health, safety and welfare, an owner of a shared-use pole and each entity attaching to that pole is responsible for that owner's or entity's own expenses for make-ready work to accommodate a municipality's attaching its facilities to that shared-use pole: a) For a governmental purpose consistent with the police power of the municipality; or b) For the purpose of providing broadband service to an unserved or underserved area.

Up in the Air

Over the summer, Oregon took a second swing at revising its state Universal Service Fund program by passing SB 1603, a bill which will create a larger rural broadband development fund by including retail wireless and VoIP service (in addition to traditional telephone service) in the fees it collects to bring basic connectivity services to unconnected parts of the state. The new law lowers the current tax rate on telecommunications service provider's gross revenue (from 8.5% to 6%) but dramatically broadens the collection base, which will bring in needed dollars to expand broadband access to state residents without it in coming years. The move comes on the heels of the state’s move to establish a Broadband Office in 2018 to “to promote access to broadband services for all Oregonians in order to improve the economy and quality of life.”

Nuts and Bolts

SB 1603, which passed the state legislature on June 26 and was signed into law on July 7, directs the Oregon Business Development Department  (OBDD) to transfer up to $5 million of the funds collected each year to a broadband fund for rural development projects, administered by the OBDD. While the amount that will be collected remains unknown at the moment, it will no doubt represent a significant boost: the current mechanism for funding rural information infrastructure projects — the Rural Broadband Capacity Pilot Program — received 25 applications for almost $5 million in requested funding, but was only able to grant $500,000, or 10%. SB 1603 caps the money to be collected by the Oregon Universal Service Fund at $28 million annually.

As a result of SB1603, Oregonians can expect the average cell phone bill would go up by about $4 a year, and those with landline telephone service will see an annual decrease of $12 a year. Some VoIP providers had contributed willingly prior to the bill — that voluntary opt-in is removed.

In the city of Fullerton, California (pop. 140,000), privately owned infrastructure builder and operator SiFi Networks has turned on the first section of what will be a city-wide, open access Fiber-to-the-Home network. The project makes Fullerton SiFi’s first FiberCity — a privately built, financed, and operated open access network it plans to duplicate in more cities across the country in the future. When complete next fall, the Fullerton FiberCity network will pass every home and business in the city, with the company's subsidiary, SiFi Networks Operations, selling wholesaling capacity to as many Internet Service Providers (ISPs) as want to enter the market. 

A Different Approach

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SiFi’s FiberCity model remains somewhat unique in the United States, and is much more common in Europe and Asia. CEO Ben Bawtree-Johnson attributes their success to cracking the economic code for private investment in open access information infrastructure, which has seen more attention in recent years as investors and fund managers have seen opportunities. “[O]ur vision really is to create as many last-mile fiber optic networks as we can across the USA in a long term sustainable fashion,” Bawtree-Jobson remarked on an episode of the podcast last fall. “[W]e're all about long term, dry, low yielding, risk mitigated investments, so everything we do is based around 30-year plus type investments.”

In June, Governor JB Pritzker signed the Rebuild Illinois capital plan, a $45 billion effort that will repair and improve all manner of infrastructure in the state. Within the plan, state leaders intend to dedicate $420 million to upgrade and expand broadband infrastructure. Such a significant investment can make a real difference in the state, as long as decision makers adopt smart policies and allow local communities to receive funding for broadband projects.

Gas Tax for Gigabits

An increase in the state’s motor fuel tax will fund most of the broadband initiative. The increase in gas prices at the pump, which took effect on July 1, jumped from 19 to 38 cents. Similarly, a special fuels tax on diesel, liquefied natural gas, and propane increased from 2.5 cents to 5 cents. State analysts anticipate the increase will garner an additional $1.24 billion to state coffers in 2020.

The Rebuild Plan also grants state bonding authority for infrastructure projects and Cook County municipalities are permitted to raise their gas taxes by an additional three cents per gallon. There are also title and registration fees that will contribute to the fund.

As part of the plan, Illinois created the Connect Illinois initiative, which is part of the Illinois Department of Commerce. One of the goals of the initiative's Broadband Office is to provide all K-12 students with high-speed Internet access at no charge. As part of the Rebuild Illinois plan, $20 million will be used to update and expand the Illinois Century Network, which serves K-12 schools, colleges and universities, public libraries, and Internet access providers.

Connect Illinois and the initiative’s Broadband Office will administer the grants made possible by the fuel tax increase. The office will also work to determine federal grants that are available and how best to access them to advance the state's goals.

Connectivity Council

In an April press release, SiFi Networks announced that they will be developing a privately funded open access Fiber-to-the-Home (FTTH) network in Fullerton, California. The project will serve the city of approximately 140,000 people, with ISPs using the SiFi fiber network  to compete for subscribers. 

Getting Commitments 

SiFi approached Fullerton in 2013 after the city’s bid to bring Google Fiber to town didn’t succeed. City leaders were interested in the prospect of bringing a FTTH network to the community as an economic development tool and, after bringing the proposal to the city council, decided they wanted to work with SiFi. The project aligned with several aspects of the community’s Fullerton Plan, a revitalization and economic development master plan.

As part of the discussions, SiFi informed Fullerton that they would wait to begin construction until after 25-year Right-of-Way (ROW) permits were granted and the company had obtained lease agreements from ISPs who wanted to offer Internet access via the network. As part of the arrangement, SiFi planned to pass every premise, regardless of what type, by the end of 2021. In January 2014, the Fullerton City Council authorized the City Manager to enter into a Negotiation Agreement (NA) with SiFi Networks. Since that time, both parties have been working to fulfill the necessary steps to move ahead with construction. 

Now that funding is in place, ISPs have committed, and permits are prepared, both parties are ready to begin the project.

SiFi will use a microtrenching method to install most of the conduit and will begin with what they call the “pilot phase” located in the southwest corner of the city. SiFi will take the opportunity to refine installation and delivery techniques, allowing the company to more efficiently deploy in the remaining zones around the city. Microtrenching is one of the tools SiFi uses as part of their FOCUS system of deployment.

Project Development and Funding