Fast, affordable Internet access for all.
Content tagged with "california"
For the second week in row, our staff has felt compelled to address a misleading report about municipal networks. In order to correct the errors and incorrect assumptions in yet another anti-muni publication, we’ve worked with Next Century Cities to publish Correcting Community Fiber Fallacies: Yoo Discredits U Penn, Not Municipal Networks.
Skewed Data = Skewed Results
Professor Christopher S. Yoo and Timothy Pfenninger from the Center for Technology, Innovation and Competition (CTIC) at the University of Pennsylvania Law School recently released "Municipal Fiber in the United States: An Empirical Assessment of Financial Performance." The report attempts to analyze the financial future of several citywide Fiber-to-the-Home (FTTH) municipal networks in the U.S. by applying a Net Present Value (NPV) calculation approach. They applied their method to some well-known networks, including Chattanooga's EPB Fiber Optics; Greenlight in Wilson, North Carolina; and Lafayette, Louisiana's LUS Fiber. Unfortunately, their initial data was flawed and incomplete, which yielded a report fraught with credibility issues.
So Many Problems
In addition to compromising data validity, the authors of the study didn’t consider the wider context of municipal networks, which goes beyond the purpose of NPV, which is determining the promise of a financial investment.
Some of the more expansive problems with this report (from our Executive Summary):
S&P Global Market Intelligence - May 26, 2017
Hard Data on Municipal Broadband Networks
Written by Sarah Barry James
There is a dearth of good data around municipal broadband networks, and the data that is available raises some tough questions.
A new study from University of Pennsylvania Law School Professor Christopher Yoo and co-author Timothy Pfenninger, a law student, identified 88 municipal fiber projects across the country, 20 of which report the financial results of their broadband operations separately from the results of their electric power operations. Municipal broadband networks are owned and operated by localities, often in connection with the local utility.
Yet Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, argued that Yoo's study did not present an entirely accurate or up-to-date picture of U.S. municipal networks.
"When I looked at the 20 communities that he studied — and his methodology for picking those is totally reasonable and he did not cherry pick them — I was not surprised at his results because many of those networks are either in very small communities … and the others were often in the early years of a buildout during a period of deep recession," Mitchell said.
As an example, Mitchell pointed to Electric Power Board's municipal broadband network in Chattanooga, Tenn. — one of the five networks Yoo identified as having positive cash flow but at such a low level that it would take more than 100 years to recover project costs.
In fact, without the revenue generated by the fiber-optics business, EPB estimated it would have had to raise electric rates by 7% this year.
Telecompetitor - May 25, 2017
Municipal broadband networks do not have a strong financial track record, according to an analysis conducted by the University of Pennsylvania’s Center for Technology, Innovation and Competition. The municipal broadband financial analysis, which looked at 20 municipal fiber projects, found that only nine were cash-flow positive and that of those, seven would need more than 60 years to break even.
An Opposing View
Municipal network advocate Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, pointed to several flaws in the Penn Law municipal broadband financial analysis.
He noted, for example that a substantial portion of the 20 networks studied were “early in the process and very small.” He also argued that the 2010-2014 study period may have biased the results, as that period included a recession and subscribership for some of the networks has increased substantially since 2014. He noted, for example, that EPB’s broadband network in Chattanooga had about 50,000 to 55,000 subscribers in 2014 but has now hit the 90,000 mark.
The Penn Law authors’ approach was “not the proper way to measure these networks,” said Mitchell in a phone call with Telecompetitor. The analysis “doesn’t take into account jobs created or the impact on the municipal budget,” he said.
He argued, for example, that a municipality that previously paid $1 million annually for connectivity might instead pay itself $500,000 for connectivity on the municipal network.
Beverly Hills may be known for mansions and upscale shopping, but within a few years, it will also be known for fast, affordable, reliable connectivity. The city is investing in a citywide Fiber-to-the-Premise (FTTP) network for all homes and businesses, including apartments and condos, inside the city.
"90210" Wants Something Better
The city (pop. 35,000) is a little less than six square miles and they receive electricity from Southern California Edison (SCE). AT&T and Spectrum (formerly Time Warner Cable) provide Internet access throughout the community but a 2014 survey as part of the city’s feasibility study indicated that 65 percent of respondents would “definitely or probably” switch to services from the city, if the services were offered. As part of the survey, 25 percent of respondents also want video and voice bundles; 86 percent feel using the Internet at home is important.
While incumbents offer fiber connectivity in commercial areas of Beverly Hills, local businesses report that rates are expensive and they must pay for the cost of construction, which is also a big expense. At a recent City Council meeting when the Council approved funding for the project, the Mayor and Members expressed the need to be an economically competitive city. With Santa Monica, Culver City and Burbank nearby (all communities with municipal networks), Beverly Hills wants to be able to attract businesses looking to relocate or hold on to the businesses that need affordable and reliable gigabit connections.
Nuts And Bolts To Networking
It’s no small feat to plan, deploy, and operate a municipal citywide Fiber-to-the-Home (FTTH) network, but communities are doing it. We’ve put together a Citywide Municipal FTTH Networks list and a map, with quick facts at your fingertips. If your community is considering such an investment, this list can offer a starting point on discovering similarly situated locations to study.
The list is divided by state and each state heading offers a description of any barriers that exist and a link to the statute in question. Under each community, we also included relevant links such as to the provider’s website, coverage on MuniNetworks.org, and reports or resources about the network.
We used four basic criteria to put a community on our list and map:
- The network must cover at least 80% of a city.
- A local government (city, town, or county) owns the infrastructure.
- It is a Fiber-to-the-Home network.
- It is in the United States.
Share the list far and wide and if you know of a community network that meets our criteria that we missed, please let us know. Contact H. Trostle at firstname.lastname@example.org to suggest additions.
San Francisco multi-occupancy building tenants will no longer be stuck with the Internet Service Provider most friendly with the landlord. On December 13th, the Board of Supervisors unanimously passed an ordinance to ensure that competing ISPs have reasonable access to buildings to offer competing services and give tenants a choice.
Ensuring Choice In Apartments, Condos, Businesses
Earlier this month, Mark Farrell from the city’s Board of Supervisors spoke with Christopher about his proposed legislation during episode #231 of the Community Broadband Bits podcast. He described how city leaders began digging into ways to improve local connectivity and uncovered a problem that was much larger than they had anticipated. While federal law prohibits property owners from forcing tenants to sign up with one particular provider, many have effectively done so by preventing competing providers from installing wiring or antennas in or on their buildings. In exchange for limiting access to the competition, building owners and landlords take kickbacks from the ISP willing to make the best offer.
The new ordinance makes such agreements between building owners or landlords and ISPs fruitless because they can no longer block competing providers from their buildings. Webpass, a fixed wireless provider focusing on serving multi-dwelling unit (MDU) tenants, has been trying to get a foothold in the city but the ordinance has proven to be a difficult barrier. A local providers, Monkeybrains, raised the capital through crowdfunding to begin a fixed wireless service, but without the ordinance their reach is limited.
New Choices For Tens Of Thousands
In an urban setting like San Francisco, eliminating the ability for landlords and ISPs to lock tenants into a take-it-or-leave-it scenario will create choice for a huge swath of people:
The federal government has awarded a $2.74 million grant to Hayward, California, to help fund the design and installation of conduit and fiber-optic network in the city’s industrial zone.
The grant, from the U.S. Department of Commerce’s Economic Development Administration, will enable Hayward (pop. 150,000) to install at least 11 miles of new conduit and fiber optic cable, the city said in a recent news release. Construction will begin in September 2017, and should be finished by the fall of 2019.
Paul Nguyen, city economic development specialist, told us, “The $2.7 million grant award is 50 percent of the total estimated project cost, roughly $5.4 million.” The city’s matching share of the project includes a $2.1 million in-kind contribution of the city's publicly-owned right-of-way property, $480,000 in general funds, and an additional $156,000 that has already been committed to the construction and installation of fiber-optic conduit in the Whitesell Street segment of the fiber loop.
Leveraging Existing Infrastructure
In its news release, Hayward officials said:
“The fiber optic network will leverage existing city-owned underground conduit and fiber optic cables used primarily for traffic communications and include new construction to complete a loop in the Industrial Technology and Innovation Corridor. This crescent-shaped corridor, located along Hayward’s western and southwestern city limit, is home to a wide range of businesses including manufacturers of food, pharmaceuticals, auto parts and electronics. The area is also becoming home to an increasing number of biotechnology and medical device makers.”
“Today, access to broadband Internet service is as vital to industry as electricity was a hundred years ago. This federal funding will help expand Hayward’s broadband infrastructure and enhance our community’s ability to attract new advanced industries. It will also provide our existing businesses with the tools they need be competitive in today’s high-speed, data-driven global economy.”
If San Francisco Board of Supervisor Mark Farrell gets his way, tenants in multiple-occupancy buildings will have a greater opportunity to choose their Internet Service Providers.
In October, Farrell introduced a proposed ordinance that would require owners of multi-tenant residential and commercial properties to give building access to all state-licensed ISPs.
Choice Effectively Denied
Farrell’s proposal comes amidst reports of tenants denied access to ISPs of their choice.
According to a legislative digest of the proposed ordinance, property owners are not legally allowed to force tenants to sign up with one provider, but by limiting access their building to install fiber or antennas, they prevent their renters from choosing the provider they want:
"[M]any occupants of residential and commercial multiple occupancy buildings are unable to choose between service providers because their buildings property owners allow only one provider to install the facilities and equipment necessary to provide services to occupants..."
The San Francisco Chronicle reports:
“The reality in San Francisco is that tens of thousands of residents have been denied access to different Internet service providers,” Farrell said. “I fundamentally believe competition is a good thing that will ultimately drive prices down and improve Internet access across all of San Francisco.”
Charles Barr, founder of up and coming fixed wireless provider Webpass, said owners block their access to approximately 400 large apartment buildings in the city. Google Fiber recently acquired Webpass.
The Proposed Ordinance
Farrell’s proposed ordinance would guarantee:
Rural electric cooperatives are providing next-generation connectivity. In Oregon a consortium of electric cooperatives called LS Networks built a middle mile network a few years ago and now are taking the next step with last mile connectivity.
LS Networks’ Connected Communities program hopes to bring last mile fiber connectivity to 25 communities in rural Oregon and Washington. Internet access will officially be available in early 2017 in some communities. Depending on the needs of each community, the solution could be Fiber-to-the-Home (FTTH), or fixed wireless using the fiber-optic network for backhaul.
The project started in July, but LS Networks only now made the official announcement. The Connected Communities program asks folks to nominate their community to be connected by filling out a short form. LS Networks will offer two types of monthly plans [pdf]: 100 Megabits per second (Mbps) for $40 and a Gigabit (1,000 Megabits) for $70. Customers will also be able to purchase voice service for an additional $15 per line and 50 cents per phone number.
Currently, the small, northern Oregon town of Maupin is the only official Connected Community. LS Networks is already at work building out a fiber connection to nearly all of the 400+ homes and businesses in the community. On November 9th, Maupin residents can take part in a town hall meeting at the South Wasco County High School to learn more about LS Networks’ plans and the Connected Communities program.
Consortium of Cooperatives
Fresno, California, is looking for one or more partners to bring Gigabit connectivity to the entire community. City leaders recently released a Request for Qualifications (RFQ) to send out the call for interested entities. Letters of interest are due on November 14th and statements of qualifications are due by November 30th.
Leaving No One Behind
According to the RFQ, the community is experiencing growth in the tech sector and want to support the tide by improving Internet infrastructure throughout the community. In addition to serving new businesses for economic development, the network will connect community anchor institutions such as schools, hospitals, and libraries.
As part of their goals, Fresno states explicitly that they want to ensure low-income families and individuals will be able to afford high-quality Internet access. In an article in the Fresno Bee, city leaders sate that they envision rates for some residents at around $10 per month for either a wired or fixed wireless connection.
Using Existing Assets