Tag: "take rate"

Posted July 12, 2022 by Sean Gonsalves

In the 1980s, Rancho Cucamonga proclaimed itself “The City with a Plan.” Back then, the plan was to remake this once rural enclave known for its vineyards into more than just one of the many sunny suburbs of Los Angeles. The vision was to leverage its stretch of the famed Route 66 highway as a branding and economic development tool and transform the city into a premier destination within the Inland Empire metropolitan area along the foothills of the San Gabriel Mountains.

That forward-looking spirit was revived again 30 years later as city leaders looked to cultivate a digital vineyard with the creation of a “Fiber Optic Master Plan” – a six-year $13 million investment plan that targets the city’s new development.

Today, Rancho Cucamonga (its name was derived from a Native American word meaning “sandy place”) owns and operates Rancho Cucamonga Municipal Broadband in partnership with Onward, a local private Internet service provider.

The city built, owns, and maintains the physical infrastructure, which is managed by the Rancho Cucamonga Municipal Utility (RCMU). Onward, which is based in the city, provides gigabit speed Internet access to the network’s 525 mostly residential subscribers as the network slowly expands to reach yet-to-be-built residential developments.

Targeting Greenfield Projects and Businesses

The move toward municipal broadband began in earnest in 2016 when the city hired Magellan Advisors to develop a plan that would leverage the city’s existing fiber assets and expand its municipal utility fiber network to “greenfield projects” and the city’s business parks (see the map below that shows blue areas where service exists and orange areas where service is coming).  

“We had a bit of a...

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Posted May 26, 2022 by Ry Marcattilio

This week on the podcast, Christopher is joined by John Lester, General Manager of Clarksville Connected.

The two discuss how Clarksville, a small rural community of about 10,000 in northwest Arkansas at the foothills of the Ozark Mountains, became the Natural State’s first 2 gig city.

Chris and John cover how Clarksville became the first city in Arkansas to issue bonds to build a municipal broadband network and how the city was able to navigate the state’s anti-municipal broadband preemption laws to provide its residents and businesses with reliable and affordable high-speed Internet connectivity.

They also discuss how the city was able to quickly build out the network before the onset of the pandemic and has reached a take-rate that surpassed initial projections. They go on to highlight the impact the network has had on powering economic development and boosting the local real estate market, while also exploring how the city worked with the U.S. Department of Housing and Urban Development to provide free connectivity to low-income residents living in affordable housing units.

This show is 29 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 ...

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Posted February 10, 2022 by Ry Marcattilio

Dickson, Tennessee (pop. 15,500) was the third municipal electric system to take power from the Tennessee Valley Authority after its creation in 1933, but the utility actually predates the regional electric generation system by almost 30 years. Today, it’s entering a new phase of life, parlaying its 117-year history of bringing affordable electric service into an $80 million fiber-to-the-home (FTTH) build that will see every household in its footprint (37,000 meters) get future-proof Internet access within the next four years.

A Cooperative in Municipal Clothing

Established in 1905, the very first Dickson Electric System (DES) customers received their power from a single 150-horsepower external combustion steam engine. DES upgraded its capacity in 1923, switching to two 150-horsepower oil-burning engines. A little more than a decade later, the TVA was established and DES took service, joining the maturing regional electric system and bringing its 650 customers and 50 miles of line into what would eventually be a group of more than 150 local power utilities almost a century later.

Today, Dickson Electric territory covers almost 800 square miles across Dickson, Hickman, Cheatham, Williamson, Humphreys, Houston, and Montgomery Counties (with the bulk of its customers in the first three), across about 2,600 miles of distribution line to 37,000 locations.

Because of this and some other factors, in many ways Dickson, Tennessee’s municipal electric system looks more like an electric cooperative than typical city-centered infrastructure, General Manager Darrell Gillespie shared in an interview. Just the fourth general manager to serve in the position since DES’ founding, Gillespie said that only 22 percent of its meters are located in the city of Dickson. The rest are spread across the seven-county footprint - many in rural areas, and including in parts or all of four other cities. In fact, DES averages just 13 customers per mile across its service area.

With a long history of providing affordable, reliable, locally accountable electric service, leadership at the utility have been talking about expanding into the fiber business for years. The onset of the pandemic in the spring of 2020...

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Posted January 14, 2022 by Emma Gautier

In June of 2020, Cullman Electric Cooperative launched Sprout Fiber Internet, a fiber-to-the-home (FTTH) network to bring broadband access to its members in rural Alabama. Sprout Fiber has taken significant strides since then, connecting its 1,300th subscriber in October of 2021.   

By July of 2020, Sprout Fiber had started the first phase of network construction, with plans to connect 25 percent of Cullman’s membership – or 12,000 households – by spring of 2022. Sprout’s first customer was connected in January 2021. By the following September, Sprout was serving “over 1,000 broadband customers and handling about 12 activations per day,” with a little under half of its Phase I deployment finished. This puts its take rate around 20 percent in less than a year. By November, Sprout Fiber had completed a fiber ring backbone to connect its offices and substations.

Expanding Access and Choices

Local competition includes AT&T and Charter Spectrum, which offer service to the town of Cullman itself but not to its surrounding areas. Several wireless and satellite providers also offer service locally. There is significant demand for Sprout Fiber’s service, however, including from members in gap areas that don’t have other options for high-speed Internet access. According to Sprout Fiber, “twenty-five percent of [its] service territory still does not have any access to [the] Internet, and other areas do not have access to a quality Internet connection.”  

Guided by member demand and targeting areas without existing robust broadband infrastructure, Sprout Fiber plans to expand broadband service into ten new areas and to 9,000 additional members in 2022 (see map below, with green areas live right now, with pink scheduled to go live early in 2022 and purple to follow thereafter. For a high-resolution version of the map, click here). Cullman Electric CEO Tim Culpepper told members: 

“Our ultimate goal is...

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Posted September 23, 2021 by Jericho Casper

Just a year after city leaders of Superior, Wisconsin (pop. 26,000) passed a resolution declaring fiber optic cabling critical infrastructure, officials are beginning to put the city’s money behind an action plan. In August, a majority of City Council members voted to adopt a plan to develop a city-owned fiber network and Superior Mayor Jim Paine proposed to reserve the bulk of the city’s American Rescue Plan federal relief funds to back the project.

The recent 8-2 City Council vote gave the green light to move forward with Connect Superior – a plan to construct open access, fiber optic broadband infrastructure reaching every resident, community anchor institution and business in the city. 

As Mayor Paine plans to budget no less than $10 million of the city’s $17 million in Rescue Plan funds to finance the project, Superior’s legislative and executive officials are largely united behind the decision to pursue the path laid out in a Broadband Master Plan [pdf] developed for the city by EntryPoint Networks.

City Councilors’ adoption of the Master Plan is a significant step forward, even as there are still numerous motions the City Council will need to approve in order for municipal fiber to become a reality. 

The next phase of the project involves designing and planning the network and hiring the contractors who will build it. City Council members will have to approve every contract with every consultant, design, and engineer firm along the way; as well as the Mayor’s American Rescue Plan budget in order to award the funds necessary to get the project rolling.

In a recent interview with ILSR, the City Council President Tylor Elm, who first proposed the idea for municipal fiber to Mayor Jim Paine several years ago, said the overwhelming support of the City Council demonstrated during the Master Plan vote provides a good perspective on how the project will fare.

Community Savings

The main objective of the Connect Superior project is reducing the cost of...

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Posted August 4, 2021 by Sean Gonsalves

Even before the central Florida city of Ocala in Marion County became officially known as “The Horse Capital of the World,” the city – home to 61,810 Floridians and over 1,200 county-wide horse farms – was already galloping toward high-speed Internet connectivity. In recent years, the Ocala Fiber Network (OFN) has expanded into offering residential service, trotting carefully towards a citywide fiber-to-the-home (FTTH) finish.

It began in 1995 with the Ocala municipal electric department upgrading its substation monitoring (SCADA) system, which has been estimated to have saved the city $25 million in networking costs since. Over the past two years, OFN has extended the network to bring affordable, reliable, high-speed Internet service to city residents, neighborhood by neighborhood.

While the municipal network has been providing high-speed Internet service for the past decade to area businesses, healthcare facilities, community anchor institutions, and schools throughout the county, OFN launched residential service in 2019 and is now serving 2,500 residential subscribers in four city neighborhoods.

“We did four pilot neighborhoods. Our target goal was to have a 30 percent take rate in each neighborhood. In the largest neighborhood (the Highlands neighborhood) with a thousand homes, we have a 42 percent take rate. We still have a challenge in one neighborhood (Happiness Homes) with about a 10 percent take rate that we think is mostly an educational challenge,” Ocala Fiber Network Director Mel Poole told us in a recent interview.

After deploying 800 miles of fiber, overhead and underground, Poole said, OFN is seeing “steady, methodical growth” of its residential subscriber base “mostly by word-of-mouth” while they continue to sign up new business customers. And, he said, from a financial perspective “we are still in the black.”

OFN Powers Through Pandemic

The network really showcased its value with the onset of the pandemic. Besides having the capacity to handle...

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Posted July 20, 2021 by Maren Machles

Since the passing of the Tennessee Broadband Accessibility Act (TBAA) in 2017, the state has poured more than $100 million into connecting its most rural communities, and more than 20 electric cooperatives throughout the state have spent the last four years making their way into the broadband business. 

Back in 2016 and 2017, Sequachee Valley Electric Cooperative (SVEC), along with many other electric cooperatives, advocated for the right to build fiber-to-the-home (FTTH) networks out to their memberships in the most rural parts of the state. When TBAA passed through the state legislature, removing major barriers for cooperatives to build out their own networks, SVEC got to work.

Today, 23 electric cooperatives in Tennessee have launched their own broadband projects, including SVEConnect, a broadband subsidiary of SVEC offering FTTH that has connected more than 4,400 members across Marion County. 

From Electrification to Connectivity

SVEC was formed in 1939 to address the broad gaps in access to electricity throughout the rural areas surrounding Chattanooga, Tennessee in Bledsoe, Grundy, Marion and Sequatchie counties. When the cooperative was first established, the nonprofit’s leaders would frequent community events at churches and neighborhood gatherings, keeping their fingers on the pulse of community needs. The cooperative began offering an essential service: electricity.

More than 80 years later, a new disparity in service was emerging: members in SVEC’s service area were not receiving the same high-speed Internet options that were offered in urban areas around the state. 

A problem remained, however. In Tennessee, broadband wasn’t listed in the state statute definition of the “community utility services” cooperatives were allowed to...

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Posted May 24, 2021 by Ry Marcattilio

Join us on Thursday, May 27 at 5pm ET/4pm CT with a special Financing Edition of the Connect This! show, with co-hosts Christopher and Travis Carter (USI Fiber) joined by Doug Dawson (President, CCG Consulting) and Kim McKinley (CMO, UTOPIA Fiber). The group will dive into the numbers and talk about the economics that make networks succeed. They'll talk about the different models to broadband buildouts, types of financing available to municipalities and small private ISPs, grant programs, the factors that drive healthy take rates, and economies of scale.

The show will begin on Thursday, May 27 at 5pm ET/4pm CT.

Subscribe to the show using this feed, or visit ConnectThisShow.com

Email us broadband@muninetworks.org with feedback and ideas for the show.

Watch here, or below.

Posted May 4, 2021 by Sean Gonsalves

As the oldest son of the legendary folk singer Woody Guthrie, Arlo Guthrie — the Town of Washington, Massachusetts’ most famous resident — built a name for himself as a singer-songwriter by letting folks know, “You can get anything you want at Alice's Restaurant.”

But if you ask the town’s Broadband Manager Kent Lew, there was one thing that was not on the menu in Washington before last year: high-speed Internet connectivity.

That’s no longer the case as the small town of Washington (pop. 549) has been on the vanguard of rural communities in the hill towns of the Berkshires that have built out (or are in the process of building out) Fiber-to-the-Home (FTTH) networks to bring gigabit speeds and affordable connectivity for residents for decades into the future.

The Pandemic: Curse & Blessing

“On the eve the Governor announced the (pandemic) shut down in March of 2020, our first Fiber Service Area was ready,” Lew recalled in a recent interview with us. “It was tremendous that we were able to do this just as people really needed it.”

As one of dozens of Western Massachusetts towns working in partnership with municipal utility provider Westfield Gas + Electric (which operates Whip City Fiber) to build broadband infrastructure, it was in 2015 that Town Meeting voters authorized a $770,000 bond issuance to finance half the construction costs of the $1.47 million network. The other half came from state grant funding.

The network design work wrapped up in 2018 with construction beginning in earnest the following year. The First Service Area was set to be lit up in March of 2020 and the entire rest of the network, which passes all 280 premises in town, was completed two months later in May of 2020 with construction crews having deployed 26.5 miles of fiber.

Still, the initial months of the pandemic lock-down, Lew said, was a “very frustrating period. Just...

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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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