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UTOPIA's Roller Coaster Ride Continues

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Anyone who tells you that UTOPIA is a "success" or that it is a "failure" is probably minimizing important problems or victories for the network. The Utah Telecommunication Open Infrastructure Agency, like so many other things in life, is a mixed bag. For those new to UTOPIA, it is a large multi-community full fiber network that operates by only selling wholesale access to service providers. Due to a law designed to protect incumbent service providers under the guise of protecting taxpayers, UTOPIA cannot offer any services itself and is strictly open access. For a variety of reasons - that have not and likely will not be repeated by other communities - the network has not yet met expectations. The costs have been greater than expected and the network does not yet cover its entire intended territory (some 16 communities and 140,000 people). However, where it does operate, it is blazing fast. The service providers offer the fastest speeds at the lowest prices (see a service comparison). It has offered a tremendous competitive advantage to the businesses and communities in which it operates. Last year, Lawrence Kingsley wrote "The Rebirth of UTOPIA" that explored where the network went wrong and how it has also succeeded. Perhaps most notably, he notes that the churn rate (people switching to other networks) is ridiculously low at .5% - a common trait to community owned networks. Last month, Geoff Daily reported on how UTOPIA is "Transforming Failure Into Success." They have greatly improved their marketing practices - which has historically been a large barrier to success. This is an important lesson for all - even though there are very few competitors in the broadband market, they do fight fiercely for subscribers. Broadband is competitive like boxing, not like a marathon. But the news coming out of Utah is not all cheery. Jesse, the resident UTOPIA expert, has recently explained some of the current financial problems and their origin. Perhaps the most important lesson to take away from UTOPIA is that plans always go awry. I have yet to find a community that did not have unexpected problems along the way to building their networks.
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Spring Issue of NATOA Journal

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NATOA, the National Association of Telecommunications Officers and Advisors, comprises many people who are in, and work on, community broadband networks. Whether they are dealing with cable-company owned I-Nets or citizen owned networks, one of their jobs is to make sure the community has the network it needs. Starting this year, NATOA has made its publication, the NATOA Journal, available to everyone, not just members. This will be a great resource for community broadband information. This issue has important articles - from an in-depth comparison of the physical properties of copper and fiber to less technical arguments by Tim Nulty and myself. Tim Nulty wrote "Fiber to the User as a Public Utility." He advances a number of important arguments:
  • Universal - everyone should have access at affordable rates
  • Open Access - it must encourage competition, not stifle it
  • Future Proof - the technology must be built to last and meet needs currently unforeseen
  • Financial self sufficiency - this can be done and the political culture suggests it must be done
He then delves into the problems Burlington Telecom faced, how it resolved those problems, and some of the strengths of their approach. He also offers some details on his new project - East Central Vermont Community Fiber Network. My "Community Owned Networks Benefit Everyone" makes the case that only publicly owned networks can offer true competition in the broadband market because private network owners will not open their networks to other providers. Facilities-based competition is a policy that encourages monopoly or duopoly throughout most of America. However, I also argue that public ownership, and the accountability that comes with it, may be more important than competition in cases where the community chooses that model.
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nDanville Network Helps Police, Economic Development

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Though Danville, Virginia, was hit hard by the simultaneously decline of tobacco and textile industries, the community has responded: Danville Utilities has been building a state of the art all fiber network. Like many communities, they built a backbone and connected the schools and government buildings first. They then started to connect businesses. This summer they will be rolling out a pilot project to connect a few thousand homes to their open services network. As they add more potential subscribers to the network, they will be more attractive to service providers. This should spur competition, increase innovation, reduce prices, and otherwise make the network more desirable to subscribers. Though the open access idea has been somewhat maligned following the troubles of UTOPIA (many of which had nothing to do with the wholesale model), the consulting firm Design Nine has helped both nDanville and The Wired Road move forward with a revised wholesale-only model. This approach may be gaining traction nationally depending on how the rules for the stimulus grants are written: Stimulating Broadband suggests broadband stimulus funding from USDA will favor "projects that will deliver end users a choice of more than one service provider." Back in Danville, the schools have much faster Internet access while shaving their telecom budgets. Other key features are listed on the network's site, including:

The nDanville Medical Network project has begun to connect a majority of doctor’s offices and medical clinics around the city. The network is already being used by the Danville Regional Medical Center to provide super high speed connectivity to satellite clinics and offices in Danville.

Last year, Last Mile featured an article on the network that includes some numbers, goals, and history of the project. Below is a video that discusses some of the benefits of the network.

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Broadband Policy: Beyond Privatization, Competition, an Independent Regulation

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Larry Press takes a rather quantitative approach to demonstrating that the deregulatory telecommunications policies of the past few decades have failed to produce the desired outcomes. We are currently at a key turning point in history: the policies we enact today will have repercussions throughout the entire decade. Fiber is replacing copper, the question is who will own it because owners make rules.
During the last 25 years, telecommunication has moved away from government–owned or regulated monopolies toward privatization with competition and oversight by independent regulatory agencies — PCR policies. We present data indicating that PCR has had little impact on the Internet during the last ten years in developed or developing nations, and discuss the reasons for this. We then describe several ways government can go beyond PCR, while balancing needs for next generation technology, decentralized infrastructure ownership, and immediate economic stimulus. We conclude that there is a need for alternatives to the expedient action of subsidizing the current Internet service providers with their demonstrated anti–competitive bent. The decisions we make today will shape telecommunication infrastructure and the industry for decades.
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Future of Broadband in Saint Paul

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This is the report developed by a Broadband Advisory Committee established in 2006 in Saint Paul, Minnesota. It recommended a phased approach to building a network that could ultimately offer a full FTTH open-access network to everyone in Saint Paul.

The BAC recommends an incremental, phased-approach to creating a publicly controlled network that uses both short- and long-term solutions. This approach would allow City and community leaders to evaluate and make decisions at key points throughout the process. The network would begin by creating a partnership with key Saint Paul public institutions to address their own broadband infrastructure needs. This partnership would participate in the development of a collaborative and cooperatively managed fiber network that would serve the immediate- and the long-term telecommunications needs of the partners. The cooperative venture would be leaveraged through the efficient maximization of the partners' pooled resources. The network has been coined the Community Fiber Network (CFN). Possible initial partners include: City of Saint Paul, Ramsey County, Saint Paul Public Schools, and State of Minnesota. The BAC envisions that the CFN would have the ability to grow organically, developing in stages as new partners are added, with the possible long term goal of the CFN providing the momentum to build a city-wide fiber system to serve the entire Saint Paul community.
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Open Access Fiber Networks

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This report is one of the best at explaining what open access is and why it is important. At a high level, everyone understands what it means for a network to be open: (1) whatever else it might do, the network offers a pure “transmission” service, so that users can freely communicate with each other; (2) users can connect any devices they want, as long as they don’t harm the network; (3) the network connects to other networks; and (4) the network doesn’t discriminate among users or among the services, information, and applications users want to provide to each other. None of these points should be controversial. The concept of open networks is at least 40 years old in the US. The FCC’s seminal 1968 Carterphone decision held that a network operator may not forbid the use of devices on the network that benefit the user and do not harm the network itself. A decade later the FCC established its equipment registration program requiring interfaces to the telephone network to be standardized and fully disclosed.
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