Like countless U.S. communities, Duluth, Minnesota (pop. 86,000) got a crash course on the importance of affordable broadband during the Covid-19 crisis. Those struggles in telecommuting and home education helped fuel a dramatic new broadband expansion plan that, if approved by the city council, could revolutionize affordable access citywide.

Last April, the Duluth Economic Development Authority signed a $65,000 contract with Entrypoint LLC to examine the possibility of building a community-owned fiber network in Duluth. The result: a new Digital Access Master Plan that proposes the city spend $7-9 million to build a pilot open access fiber network in Lincoln Park next year. 

“Reliable high-speed internet is no longer a luxury,” Duluth Mayor Emily Larson proclaimed in a recent state of the city address. “It’s an essential utility no less important to our future success than our roads, water, and electricity.”

A Pilot Project, and Potentially More

Under the proposal, 75 percent of the new network would be buried fiber and 25 percent would be microtrenched along public roads. The $7 to $9 million estimated price tag is based on a 60% take rate, short-term interest at 5 percent, and a long-term interest rate of 3 percent for 20 years. The initial pilot project would bring fiber to an estimated 1,900 Duluth residents next year. 

“A 60% take-rate may seem aggressive given the strong market position of the incumbent cable operator,” the plan states. “However, the survey data suggests a strong desire among residents and businesses in Duluth to see competition, choice, better pricing, and the reliability of a fiber optic network.”

The Master Plan highlights how a majority of Duluth is served by either a duopoly or monopoly consisting of Charter Communications (Spectrum) and Centurylink. Centurylink sells $50 a month usage-capped DSL service that doesn’t qualify as broadband, according to the FCC. Charter requires users sign long-term contracts to lock in lower rates, while utilizing fees that can add 15-30 percent to the company’s...

A new report out from the Copia Institute highlights the failures of the current national broadband marketplace and the value of locally-driven connectivity solutions, while underscoring once again the potential for open access models to break entrenched monopoly power. Along the way, the report offers some useful ways of reframing our understanding of how we got to a place where Internet access is dominated by just a handful of companies across the United States.

Cities as Laboratories, and the Possibilities of Open Access

“Competition is Just a Click Away” covers a lot of ground. Its author - Karl Bode - is a veteran of the broadband policy space (including writing for ILSR recently), and has long helped shed light on the consequences in increasing monopoly power in the technology landscape.

In the report, he begins by laying out the problems borne from a lack of competition, including: the consequences of regulatory capture of the FCC by huge, for-profit companies, past and continued problems with mapping, and the resulting slower speeds, lack of investment, astonishing extraction of wealth, and worrying lobbying power enjoyed by monopoly providers, all fueled by increasingly high prices and the efficient extraction of wealth from communities to further concentrate market reach and lobbying power. 

An important early point made in the report is that, in the face of these realities, over the last fifteen years local cities have become “telecom laboratories where financial and technical innovation flourish, providing blueprints federal policy makers struggling to boost affordable broadband availability would be foolish to ignore.” Chattanooga and a handful of other city-owned and operated networks illustrate the power of communities to retake control of essential infrastructure.

The community broadband movement is an organic market response to market failure and the extractive power of unchecked monopolization.

Among the many results, the report points out, is that subscribers in the United States pay higher prices for slower service than many other places. But it doesn’t have to be that way, Bode reminds us.

Open access networks offer a concrete path to separating Internet infrastructure from service provisioning, and allow even conservatively minded cities to use...

This week on the podcast, Christopher is joined by Benoit Felton (Independent Consultant, Diffraction Analysis). 

During the conversation, the two discuss the transformational potential of broadband,  international developments in fiber deployment and lessons on wholesale broadband networks. 

They talk about the state of European broadband service, what keeps customers from changing providers within open access models, and compare “open access” with “wholesale” terminology.

Benoit and Chris discuss the reality of Internet connectivity and access in China and Southeast Asian countries finding recent success in fiber deployments. Finally, they end the show with thoughts on regulatory capture and why regulation is key to the success of wholesale networks.

This show is 49 minutes long and can be played on this page or via iTunes or the tool of your choice using this feed. You can listen to the interview on this page or visit the Community Broadband Bits page.

Transcript coming soon. 

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.

Subscribe to the Building Local Power podcast, also from the Institute for Local Self-Reliance, on iTunes or Stitcher to catch more great conversations about local communities, the concentration of corporate power, and how everyday people are taking control.

Thanks to Arne Huseby for the music. The song is Warm...

This year's Mountain Connect conference begins Monday, May 23rd and runs through Wednesday, May 25 in Keystone, Colorado. The conference's self-stated goal is to "move our western US communities forward by providing relevant and targeted content to help them make the most effective decisions as they build new or expand existing telecommunications infrastructure that enable the long-term vision of a community."

It will feature panels on navigating state and federal funding, telehealth, disaster resilience, digital inclusion, tribal connectivity, construction challenges, and communications and technology standards. 

We'll also get to hear an array of conversations with local leaders, talking about everything from revitalizing downtowns with new municipal broadband infrastructure, to partnerships, to open access, to marketing, to managing subscriber expectations. See the full agenda here.

Anchoring the panels will be communities like Boulder, Colorado, Loveland, Colorado, and Detroit, Michigan, with familiar faces and industry veterans helping to break things down in clear ways, including Peggy Schaffer (ConnectME), Joshua Edmonds (Director of Digital Inclusion, Detroit), Brian Snider (Lit Communities), Bruce Patterson (EntryPoint Networks), and Gary Bolton (Fiber Broadband Association).

ILSR's DeAnne Cuellar will be participating on a digital inclusion panel moderated by NDIA's Paolo Balboa with Colorado Department of Labor's Katherine Keegan. Likewise, Christopher Mitchell will moderate a panel with Peggy Schaffer, Eric Forsch (Idaho Commerce) and Veneeth Iyengar (ConnectLA) to talk about how states will use the BEAD money. See the full slate of speakers here.

Register for Mountain Connect 2022 here.