Because its downtown buildings were made to resemble Windy City architecture, Fort Dodge was once nicknamed “Little Chicago.” But now, this north-central Iowa city with a population of just under 25,000 is building something the real Chicago, 360 miles east of Fort Dodge, does not have: a municipal fiber-to-the-home (ftth) network.

Having secured up to $36.8 million in loans from a consortium of local banks, the Cedar Rapids-based engineering firm HR Green has been hired by the city to put together a final engineering and design plan for a city-wide fiber network.

The RFP to do the construction work will go out to bid in late spring 2022, with actual network construction slated to begin in the summer of 2022. City officials say the new utility will likely begin offering high-speed Internet service to Fort Dodgers as soon as the summer of 2023, though the network won’t be fully built-out city-wide until 2024.

Unserved, Underserved and Poorly Served

In many rural communities, local governments, cooperatives, public entities, or nonprofit organizations will sometimes build the infrastructure necessary to deliver high-speed Internet service to the unserved and underserved because incumbent providers don’t see enough short-term ROI to justify the expense. But in more densely populated locales, municipal broadband is often pursued because the existing service from private providers simply isn’t up to par. The market has failed rural, suburban, and urban communities - just in different ways.

And that’s why in cities like Fort Dodge, the feasibility study commissioned by the city hits on a familiar refrain found in feasibility studies across the nation:

“Despite being the largest city in the region and key commercial hub, Fort Dodge telecommunications infrastructure is less advanced than in surrounding rural areas and small towns like Lehigh, Dayton, and Badger.”

Vinton, Iowa’s municipal communications utility, iVinton, connected its 1,000th subscriber with high-speed fiber optic Internet service this week.

Demand for fiber-to-the-home (FTTH) connectivity across the 4.74-square-mile Iowa community (est. pop. 5,100) is so substantial that iVinton, governed by the Vinton Municipal Electric Utility (VMEU), is having to schedule installations a month out as requests for residential service have surpassed the manpower available to complete them as quickly as they had hoped. 

As the telecommunications utility transitions out of its start-up phase – from working with external consultants to bringing all operations in house and limiting outside vendors – the biggest challenge iVinton has had to overcome is not having enough employees to take on the necessary roles, Matt Storm, iVinton’s Municipal Communications Manager, told ILSR in a recent interview. 

Still, the utility is plugging away to keep up with requests for residential installations as iVinton is eager to meet the surge in demand. “We’re supplying a service that’s needed for the community, and the community has responded,” Storm told ILSR.

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Just over a year into the municipal fiber network being operational, 1,000 of 2,450 residential and business premises, or 41 percent of the available premises in Vinton have made the switch. They've been lured by increased bandwidth, a higher quality of service, and the benefit of iVinton being a local provider with service technicians in town. Today, iVinton offers three symmetrical speed tiers to residents: 100 Megabit per second (Mbps), 250 Mbps, and 1000 Mbps connections for $70, $90, and $120 per month respectively. 

Our new report, Minnesota Broadband: Land of 10,000 Connectivity Solutions [pdf], showcases the diverse range of approaches communities and local Internet Service Providers (ISPs) have taken to expand affordable, high-quality Internet access in Minnesota. It includes a series of case studies that detail how communities are meeting the connectivity challenges of a broken marketplace shaped by large monopoly service providers. 

The profiled projects include municipal networks, public-private partnerships, cooperatives, and private investment. They run from the most rural areas of the state to Minneapolis. Some examples include:

• RS Fiber Cooperative, in south central Minnesota, which has brought fiber to local businesses and town residents. Rural residents benefit from RS Air, a fast wireless service available at affordable prices.
• Arrowhead Electric Cooperative’s fiber network in Cook County, which succeeded beyond original projections. It provides fast and affordable Internet access to one of the most far-flung parts of the state.
• St. Louis Park’s partnerships with both ISPs and the builders of large condominium complexes. One of the providers working with St. Louis Park is better known as the fastest ISP in Minneapolis, USI Fiber.
• Christensen Communications, a 100+ year-old telephone company in south central Minnesota. The company demonstrated a strong commitment to its communities when the pandemic hit, and is now going above and beyond to build fiber with federal subsidies.
• The Fond du Lac Band, in northern Minnesota, which built a fiber-to-the-home network that is rare in Indian Country.

Ry Marcattilio-McCracken, co-author of the report and Senior Researcher with ILSR’s Community Broadband Networks initiative, said of the report’s findings: 

Minnesota communities and local ISPs have found creative and sustainable ways to build future-proof networks across the state, despite a broken marketplace and state barriers that favor slow-moving, out-of-state monopoly providers clinging to outdated technology. Lawmakers must stand up for the cities and towns that sent them to the legislature, and remove the obstacles that prevent a more competitive market and local broadband solutions.

Last summer we wrote about the slow but steady progress the city of Waterloo, Iowa (pop. 68,000) has been making towards improving local connectivity options for residents and businesses needing it. The city hired Magellan Advisors to perform a feasibility study for a possible Fiber-to-the-Home (FTTH) network in the fall of 2019, but things have been mostly quiet since, with news outlets reporting on a reluctance to release the results of the study for fear of what incumbent cable provider Mediacom would might do to hinder its efforts.

These fears are not without reason, given the company’s previous efforts in the region to slow the specter of municipal competition with lawsuits, complaints, and propaganda efforts in its service territory.

When last we heard the feasibility study would be released this spring, and while we still have not seen a copy, Waterloo must be encouraged. The city’s Telecommunications Board of Trustees established a resident-led municipal broadband utility committee on January 27th, giving the group the charge of tackling “risk mitigation, community marketing, digital infrastructure and finance and business strategy” for a future network.

When the announcement was made, Board Chair Andy Van Fleet said the work would serve as "critical pillars to move this project forward successfully when the time is right to turn the plan into actionable items."

Update: The Community Broadband Action Network (CBAN) notes that it looks like SSB 1184 is dead, having been shelved in committee yesterday. They say the "bill was briefly discussed by a subcommittee of the House Commerce Committee on February 16th, but postponed 'indefinitely.'"

Original story:

Less than a year after an attempt to hamstring municipal broadband in Iowa, local opponents are at it again. If you’ve been around the block, Senate Study Bill 1184 will look remarkably similar to SSB 3009 from last January 2020, and that’s because it’s nearly identical. 

Like its last incarnation, SSB 1184 threatens the viability of any new municipal broadband effort by placing draconian financial barriers in the way, and, if passed, handcuffs existing networks as well as those under construction. Though there are no public fingerprints on the bill, the word around the capitol is that Mediacom is behind it. Among its provisions are those that would:

Iowa is home to many community networks, from co-ops to muni cable, fiber, and other technologies. Three communities in the state have just recently made important announcements about their plans, and several others are moving forward with networks. There is so much happening in Iowa right now that shows potential for other states that don't limit competition.

There is a long history of local broadband excellence in Iowa for new networks to draw on. Cedar Falls Utilities was just recognized as the fastest ISP in the nation by PCMag. It has well over 20 years of success, but recent years have seen it sharing its expertise and facilities to lower the cost for other communities to build networks without reinventing the wheel. Local private Internet service provider ImOn is also a partner for these networks, offering voice services.

Many of these networks being built will be able to share services and lower their costs by being on the same ring to get some scale benefits despite being smaller communities. I remember many years ago when Eric Lampland of Lookout Point started pushing for this ring, and I am dumbfounded why we don't see more of this cooperation among munis and small providers in other states. Thanks to Eric and Curtis Dean of SmartSource Consulting who helped me with background for this Iowa update.

We have a brief mention of West Des Moines's recently announced partnership with Google Fiber in here, but we're finishing a longer post that solely examines their approach. Between this, that, and our Coon Rapids podcast this week, it is officially Iowa week on MuniNetworks.org!

Vinton

Vinton's new municipal fiber network has just started connecting subscribers, leading to a memorable testimonial in the local paper, Vinton Today:

As schools and businesses ask people to stay home to reduce the spread of Covid-19 coronavirus, I wanted to share some thoughts about how I expect broadband Internet access networks will handle the change and increase in broadband traffic in residential areas.

Our first reaction is that, as with so many areas with network effects, the rich will get richer. This is to say that historic inequities will be exacerbated — people that have been able to afford the high-quality networks will probably see very little disruption and those who have older networks may be effectively disconnected.

Better Network Scenarios

Those on fiber optic networks probably won't notice major changes in demand. This is the easy one — it is why we have long believed that fiber optics should be the goal for the vast majority of Americans.

Most modern cable networks should be also able to handle the demand — especially on the download end. This is good because 2 out of 3 Americans with broadband gets it from a cable network. Upgrades in recent years from the aggressive cable companies (Comcast Xfinity, Cox, and some of the many smaller cable networks — Charter Spectrum less so) should allow more than sufficient download capacity even if home video streaming increases significantly. But in smaller towns, where the local cable companies haven't been able to afford those upgrades and the bigger cable providers have just ignored them, I would expect to see intermittent and in some cases, persistent congestion problems from bottlenecks.

In the upstream direction, the cable networks will have some challenges. I wouldn't expect most Comcast or Cox markets to have too many problems, though neighborhoods with lots of professionals using video conferencing tools could congest. I would expect Charter Spectrum, Mediacom, and many of the others to have frequent congestion for upstream connections, lowering throughput extremely at times.

Despite state laws requiring referenda and public reporting, Iowa is home to successful municipal networks, which have been undeterred by these potential stumbling blocks. A bill in the Iowa Senate, however, may present a new barrier discouraging new networks in places where Iowans need it the most. In communities where Internet access companies aren't offering the caliber of services residents and businesses need, the proposal would restrict the possibility of competition.

Sweeping Impact

Earlier this month, State Senator Dan Dawson, R-Council Bluffs, introduced Senate Study Bill 3009, which is supported by Mediacom, a national cable company that offers connectivity to nearly two-thirds of Iowans. The bill threatens cities’ access to financing for municipal broadband networks and challenges their ability to set competitive prices. This would impact cities with long established networks, like Cedar Falls and Coon Rapids, as well as communities that have recently decided to move forward with broadband plans, like Fort Dodge, Vinton, and Waterloo.

Tim Whipple, General Counsel for the Iowa Association of Municipal Utilities, which opposes SSB 3009, wrote in an email:

While community-owned broadband may not work for all communities, cities should have the opportunity to begin providing these services without having undue restrictions placed on them . . . especially in areas where incumbent providers aren’t properly investing.

Bill Brings New Barriers

Senator Dawson chairs the state Commerce Committee and introduced SSB 3009 as a proposed committee bill.

Iowa already has more municipal broadband utilities than many other states and the voters in Fort Dodge decided on November 5th, that that it's time for one more. "Yes" votes came in at around 72 percent of the total while 28 percent of those casting ballots decided against a measure to grant authority for a municipal telecommunications network.

A Copper Island in a Sea of Fiber

In June, consultants described the way Fort Dodge had become "an island of copper in a sea of fiber to the home." Local rural cooperatives around the city of around 24,000 have been investing in Fiber-to-the-Home (FTTH) while incumbents Mediacom and Frontier still rely on old infrastructure to serve the more densely populated city areas. Curtis Dean from SmartSource Consulting noted that people in the rural areas served by the co-ops likely have access to better connectivity than those living within Fort Dodge. The city had hired SmartSource to evaluate the broadband situation in Fort Dodge and make recommendations.

The results of a survey and assessment of connectivity in the community encouraged community leaders to ask voters for the authority to look further into a possible municipal telecommunications utility.

At an October forum, Mediacom representatives argued their case against a "yes" vote on the proposal. Those that attended, offered negative comments to Mediacom about the service they've received from the company. Frontier Communications, another major Internet service provider in Fort Dodge, didn't bother to send a representative to the forum.