Tag: "take rate"

Posted April 20, 2021 by Sean Gonsalves

When he was a colonel in the Virginia Militia, George Washington is said to have visited “Craig’s Camp,” a mountainous frontier outpost in southwest Virginia near the border of what would later become West Virginia. After the Seven Years' War, farmers and tradesmen were drawn to the area, establishing a settlement known then as “Newfincastle.” Over the years, the “fin” was dropped and the town became New Castle, the seat of Craig County.

Today – with the Jefferson National Forest comprising half of the county, its scenic byways, access to the Appalachian Trail, old churches, and family cemeteries – Craig County and the surrounding region remains steeped in early American history. And now, thanks to the Craig-Botetourt Rural Electric Cooperative (CBEC), this corner of rural Virginia has established a forward-looking outpost of Internet connectivity, and a new fiber frontier that planners hope to expand across the seven counties that make up CBEC’s 650 square-mile service area.

The Bee Online Advantage

It was in 2018 when CBEC began to seriously consider building a broadband network to serve its 6,800 members because, as the co-op’s website puts it: “Our members are experiencing what originally created the electric cooperative in 1936 – a lack of service. They lacked electricity [85] years ago; now they lack high-speed Internet [access].”

That lack of high-speed Internet connectivity is becoming a thing of the past, at least for co-op members in Botetourt County who now have access to an emerging Fiber-to-the-Home (FTTH) service through a CBEC subsidiary known as the Bee Online Advantage.

“We have about 10 percent of our membership covered right now. To build-out the rest of the network (into the adjacent counties) will probably cost somewhere in the $60 million range,” CBEC CEO Jeff Ahearn told us in an interview.

One of the main drivers of the network’s construction costs, Ahearn said, is the “very low (population) density” of CBEC’s...

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Posted April 6, 2021 by Maren Machles

Talladega, AL has long been known as the epicenter of NASCAR, a sport synonymous with speed. In 1987, Bill Elliot set the fastest recorded time of 212.089 mph on that very track. 

Cars aren’t expected to start racing down the Talladega Superspeedway track until late April, but the Coosa Valley Electric Cooperative (CVEC) chose the location to announce the fittingly super fast speeds it expects to begin serving up with its new broadband subsidiary, Coosa Valley Technologies, last Wednesday. 

Unfortunately, many residents in Talladega County and surrounding counties have long gone without fast connectivity, with average speeds as low as 5 Mbps (Megabits per second)

CVEC often holds events at the Superspeedway, but for this event they wanted to make sure that since people were gathering, social distancing was possible. Also they wanted to communicate a message.

“It also served as a good backdrop for what we were trying to communicate, which was, we’re going to be provided the fastest broadband service in our area,” Jon Cullimore, CVEC Manager of Marketing and Member Services, told us in an interview as the cooperative prepares to embark on a fiber build intended to bring fast, affordable Internet access to everyone in its electric footprint over the next four years.

Driven by Membership

It all started in 2019 with feasibility studies conducted by two different firms. Both found a profound lack of broadband service throughout CVEC’s service territory, which is situated east of Birmingham.

When the studies were completed, CVEC quickly put together a comprehensive information packet for members to get educated before their annual meeting last September. The members were asked to vote on whether or not CVEC should form a new broadband subsidiary and embark on a new phase of life.

“We got the word out, and we had a record attendance at our annual meeting. We’ve never had that many members show up before,” Cullimore said. “I think we only had 12 ‘no’ votes out of all the [more than] one thousand people that showed up.”  

CVEC quickly got to work...

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Posted March 24, 2021 by Ry Marcattilio-McCracken

Franklin, Kentucky’s (pop. 8,400) electric utility is gearing up for an expansion of its partnership with Warren Rural Electric Cooperative Corporation (WRECC) with the help of $2.3 million from the recent FCC Rural Digital Opportunity Fund (RDOF). The new partnership will allow Franklin EPB to add new service to roughly 250 locations adjacent to a current project in the area.

The expansion project will add subscribers in the northeast region of Simpson County and nearby parts of the city of Franklin in the south-central part of the state, where the two entities are operating a two-area fiber pilot.

It represents the growth of a collaboration between Franklin EPB and the electric cooperative. In 2019, the two partnered up to deploy service with Franklin EPB leasing dark fiber from the cooperative and acting as service provider to “350 of its customers in northeast Simpson County and in an area on the southeast side of Franklin.” The project brought symmetrical 100 Megabit per second (Mbps) and 1 Gigabit per second (Gbps) options for $60 and $80/month to those locations and has brought service to a lot of happy members

 “Providing high-speed Internet [access] in rural areas has been and continues to be an important issue nationwide. Fortunately, we have been able to develop a successful model with Franklin EPB. We’re delighted to be able to expand our service in Simpson County immediately thanks to the RDOF funding,” said Dewayne McDonald, President and CEO of Warren RECC, at the announcement. He continued to emphasize that "part of our mission is to improve the quality of life for our members. This expansion represents a giant leap in progress for them, and we’re excited about the momentum. For the areas we didn’t win, we hope the companies that did win them will live up to their commitment to serve our...

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Posted February 5, 2021 by Ry Marcattilio-McCracken

Marketing plays a pivotal role in the success of community broadband at every stage of the game: from helping build political will during the initial stages of a project, to driving strong early take rates, to maintaining momentum down the road. Thoughtful and cohesive marketing, outreach, and community education efforts go hand in hand, and help broadband initiatives and networks weather the inevitable challenges that go with major infrastructure projects. 

On Episode 6 of Connect This!, Christopher and Travis Carter (CEO, US Internet) will be joined by Kim McKinley (Deputy Director and Chief Marketing Officer, UTOPIA Fiber) and Kyle Hollifield (VP of Business Development, Magellan Advisors), both veterans with years of experience. The group will talk about all that marketing entails, including what we can learn from those that do it right and what gets left on the table when it's not part of the discussion. 

Join us Monday, February 8th, at 3:30pm CST on YouTube Live with this link, or watch below.

Posted January 26, 2021 by Sean Gonsalves

Conway is right in the middle – in the middle of Arkansas with its utility company, Conway Corp, in the middle of beefing up its broadband network.

In this city of 66,000 – home to the information technology company Acxiom Corporation and three colleges – residents and businesses have long relied on Conway Corp for more than just electricity since the utility first launched its cable and Internet service in 1997.

Conway Corp, which has been Conway’s electric utility for the past 90 years, has a unique relationship with the city’s government. “We are different in the way we are set up as compared to many other municipal networks. We are set up as a non-profit. We lease the network and operate it on behalf of the city,” explained Conway Corp Chief Marketing Officer Crystal Kemp.

At the heart of the utility’s network management has been the on-going work to stay ahead of the curve.

Prepared for the Pandemic

“When we launched Internet services in 1997, upstream capacity wasn’t a concern and systems were built with the average homes (and) businesses per geographic area, or node, at 500. Today those numbers are less than 95 per node. That’s been achieved through physical changes in the network and changes in our engineering practices,” Conway Corp’s Chief Technology Officer Jason Hansen told us last week. 

Upgrades to the Hybrid-Fiber-Coax (HFC) network began to take shape in 2019 with the deployment of DOCSIS 3.1, allowing Conway Corp to double its downstream capacity. They also began upgrading equipment that paved the way for expanded use of the RF (Radio Frequency) spectrum to boost the network’s bandwidth. As of December 2020, about 50 percent of the upstream upgrade work had been completed with the remainder expected to be finished by the summer of 2021.

Currently, Conway Corp has 21,608 Internet service customers, which translates into a take-rate of 72% on the residential side and over 50% on the business side. AT&T operates its gigabit service in town, but there are no other traditional citywide cable systems in operation in the area.

The network upgrade, which began in earnest in 2019, turned out to be prescient planning as the emerging COVID-...

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Posted January 7, 2021 by Ry Marcattilio-McCracken

Less than two years after the network was approved as a pilot project in September 2018, Idaho Falls Fiber Network has connected its 1,000th subscriber. Residents can check the detailed build map to see when their area might come online, but the network is looking to complete a ubiquitous build by 2024. Check out our previous coverage to see how they did it.

Posted November 2, 2020 by Ry Marcattilio-McCracken

Building a successful community broadband network, we’ve often pointed out, relies on successful organizing and marketing campaigns as much as it does on putting fiber in the ground. Those networks that do it well succeed, and those that fail to take it into consideration can languish or stall out. 

Successful marketing and organizing can build political will for a project, turn enthusiastic adopters into neighborhood champions who help increase take rates, help counter disinformation campaigns and predatory pricing by incumbent Internet Service Providers (ISPs), and show the ways that community owned networks have gone above and beyond over the years to invest not just in the most profitable neighborhoods around but ensure that those along every street and across every block have affordable, reliable, fast Internet access. 

The New Hampshire Electric Cooperative recently saw firsthand how a smart, engaged, energetic subset of its membership can make Internet access a priority. Fairlawn, Ohio’s municipal network has also been highlighting the value it’s bringing to users in the midst of the ongoing pandemic.

And with votes regarding municipal broadband networks coming up in Kaysville, Utah, Denver, Berthoud, and Engelwood, Colorado, Chicago, Illinois, and Lucas, Texas, taking this into consideration is as important as it’s every been.

See some clever and colorful below examples below, and read our past coverage to see how different community networks have taken on the task of branding, marketing, and organizing for success.

Some images courtesy of Internet Freedom for McHenry County

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Posted October 22, 2020 by Ry Marcattilio-McCracken

Less than seven months has passed since the city of Anacortes, Washington (pop. 17,000) connected the very first subscriber in a pilot project for its municipal network. In the interim, thousands of households have signed up, construction continues at full-steam, and local officials are looking forward to years of providing fast, affordable, reliable service to those living on Fidalgo Island.  

Five Years in the Making

We’ve been following Anacortes since 2015, when the city first began discussing the issue, watching as as local leaders and stakeholders assessed community needs, the state of broadband in the area, and options available to them, and much has changed. Read through our previous coverage if you’re interested in how things unfolded, but by the early part of 2019 the city had decided to pass on the other options and build, maintain, and operate the network themselves

Access-Anacortes, the municipal network borne out of that decision, is approaching the end of a two-year pilot project which by all metrics has been successful. In an interview, Emily Schuh (Administrative Services Director) and Jim Lemberg (Municipal Broadband Business Manager) shared what they’ve learned and how things are going. Throughout 2019 and 2020, construction has passed just over 1,000 premises and achieved a 39.6% take rate, surpassing the 35% bar they set early on, in three pilot areas which sit on the north side and down the middle of town. The city owns, maintains, and operates the network, with the library serving as the center of operations. Access-Anacortes consists almost entirely of new construction, though it does use some of the city’s internal backbone fiber — which itself is only a handful of years old — as well.

The green, yellow, and orange...

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Posted October 22, 2020 by Ry Marcattilio-McCracken

Along the banks of the Columbia River, Multnomah County (pop. 813,000), Oregon is considering a publicly owned Fiber-to-the-Home (FTTH) network after being handed a study more than a year in the making. The report estimates that a countywide network reaching every home, business, and farm in a five-city area would cost just shy of $970 million, and bring with it a wealth of savings and other benefits to the community it serves.

Origins

The study has its origins in a 2017 push initiated by an advocacy group called Municipal Broadband PDX which has sought more affordable and equitable Internet access in the region. In 2018, the County Board of Commissioners agreed that it should be explored and approved the funding of a study, with the city of Portland and Multnomah County each contributing $100,000 and the remaining towns of Fairview, Gresham, Troutdale, and Wood Village joining the effort to collectively contribute an additional $50,000 for funding. Over the next year, CTC Technology and Energy conducted a comprehensive survey, analysis, and evaluation, and the results were delivered at the end of September.

The report offers good news: the majority of residents in Multnomah County want a publicly built and operated FTTH network, and it would be economically viable to provide symmetrical gigabit service to as many of the more than 320,000 households as want it for $80/month. At a projected 36% take rate on a 4% bond over a 20-year period, the network would cost somewhere in the neighborhood of $966 million, depending on a host of local and market factors, some of which are fixed and others subject to change. It would see net positive income by the end of its fourth year of operation, and see a total of more than $54 million in positive net income by the end of its 20-year depreciation period (a standard model for fiber infrastructure, though they often last longer). These numbers change when adjusting the take rate and interest rate, but in the vast majority of scenarios, building a community owned FTTH network in Multnomah County is feasible. 

Broadband in Multnomah County

...

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Posted October 20, 2020 by Ry Marcattilio-McCracken

A little over three years ago in Episode 232 we heard from Lyndon Township, Michigan just after a ballot initiative passed to fund and build a municipal network. 43% of the community turned out for the vote, and the measure passed by a ratio of two to one. 

Today we revisit Lyndon Township Broadband, with Christopher joined by Ben Fineman, President of the Michigan Broadband Initiative, as well as Jo Anne Munce, and Gary Munce, both of whom were essential in the ballot campaign and who volunteer with the broadband initiative.

Christopher catches up with what’s been going on since, and what things look like now that the network has almost everyone hooked up. The township owns the network, with area electric cooperative Midwest Energy and Communications operating it on a day-to-day basis. The group talks about the network’s phenomenal 75% take rate, the current state of its debt, and how it just increased speeds on two of the service tiers with no additional fees. Lyndon Township serves as a great example of a community that decided to tax itself for a fiber network and are reaping the rewards. 

This show is 35 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.

Read the transcript for this episode.

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 ...

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