Next Century Cities recently hosted "Digital Northwest," a summit for regional broadband leaders. Leaders from member cities all over the country gathered together to learn from one another and discuss digital inclusion, models for success, partnerships, and much more. 

Chris led a panel of mayors and city council leaders from cities with well-known municipal networks in a discussion of their networks and how their communities have benefitted. 

The panel featured: 

• Mayor Jill Boudreau, Mt. Vernon, WA
• Mayor Wade Troxell, Fort Collins, CO
• City Council President Jeremy Pietzold, , Sandy OR
• Councilmember David Terrazas, Santa Cruz, CA

The California State Assembly will soon vote on three bills that have significant implications for rural Internet access initiatives in the Golden State. An online Change.org petition is asking you to urge lawmakers to give local communities the authority to determine their own Internet access needs.

On April 20th, 2016, the State Assembly will vote on a bill to provide state funding for community-based efforts aimed at improving broadband access in rural areas. And during the current session this week, California Represenatives will vote on two additional bills, drafted by lobbying groups working for the telecom industry, which seek to give incumbent providers even greater power to control the quality and price of Internet access options that are available in these rural communities.

From the petition:

Bill AB1758 was drafted by rural broadband activists and sponsored by assemblymen Mark Stone, Eduardo Garcia, Marc Levine, and Mike McGuire. It extends state funding and grant programs to local agencies and consortiums to plan and build community based internet solutions in communities throughout the state that have been ignored by big telcom. The bill requires a super majority to move from committee to vote. Committee members need to hear from people around the state to move this bill forward. If it dies in committee, funding will cease, and rural communities around the state will be at the mercy of AT&T, Comcast, Time Warner, etc. AB1758 comes to discussion on April 20th, 2016.

The petition describes two other bills up for consideration, AB2130 and AB2395, which will greatly influence the use of California Advanced Services Funds, allowing large corporate cable and telecom incumbents access to those funds. Local communities will have very little opportunities to obtain those same grants under the proposed changes.

A March article in Broadband Properties Magazine spotlights three communities around the country that are making progress toward creating municipal fiber networks. The City of Centennial, Colorado announced that they have completed a feasibility study and a Master Plan detailing the city’s plans to develop a network. Additionally, the Cities of Indianola, Iowa and Rancho Cucamonga, California announced that they have begun studying the feasibility of starting their own municipal fiber networks. 

Indianola, Iowa

Indianola, Iowa is a city of about 15,000 just 20 miles south of Des Moines. As we wrote a few years ago, Indianola currently owns an open access Fiber-to-the Premise (FTTP) network which provides Gigabit speed Internet access, plus TV, and phone service to most businesses and select residents in Indianola. The study they recently commissioned will explore the feasibility of using this existing network for constructing a FTTP network to the entire community. 

Indianola built its existing fiber network, which they launched in 2012, out of frustration as CenturyLink refused requests from the community to upgrade their DSL network and the incumbent Mediacom began overcharging for their Internet services. Today, Indianola Municipal Utilities is the infrastructure owner and a wholesale provider of this fiber network while Mahaska Communication Group, an Iowa-based Internet Service Provider (ISP), performs the operations and maintenance services for the network. 

Rancho Cucamonga, California

The City of Rancho Cucamonga, California recently asked a private consulting firm to perform a study to determine the feasibility of creating a fiber optic network. City officials see a municipal fiber network in this city of just over 170,000 as a potential driver of economic development. The city is located about 45 miles east of Los Angeles.

Earlier this month, the Santa Monica City Council met to approve rates for the city's Digital Inclusion Pilot Program. The program is already in place, bringing free Gigabit per second (Gbps) Internet access to computers in community rooms in ten affordable housing complexes. The March 1st vote expands the program to offer residents the opportunity to sign up for services in their homes.

According to the Santa Monica Mirror, official monthly rates are set at $69 for 1 Gbps and $360 for 10 Gbps. People receiving Public Assistance will be able to obtain a discount to lower the rates to $48 and $252 per month respectively. An additional FCC Lifeline subsidy for those who qualify will lower the cost further to $38.25 per month for 1 Gbps Internet access. Download and upload speeds are the same.

Staff at the city established the rates for the pilot after studying rates in other markets where Gigabit access is available including Chattanooga, Lafayette, and Google Fiber. In order to support adoption in lower income households, city staff analyzed discounts that typically apply for other utilities and suggested a 30 percent discount for those actively participating in those programs. This approach does not exclude the elderly or households without school age children, one of the criticisms of Comcast's Internet Essentials. The staff report is available at the city website.

The Council approved a resolution, which also included construction funding of $175,000 for the project.

“In a global economy, any competitive edge we can offer our community is a worthy venture,” Gary Carter, Santa Monica City’s Community Broadband Manager told The Mirror.

“Santa Monica is uniquely positioned to collaboratively innovate as a community to fully leverage the technology of a cutting edge fiber optic network.” 

Long Time Coming

Back in June 2015, Santa Cruz announced a municipal fiber project with Cruzio, a local company that offers Internet access, colocation services, and a range of other data solutions. After finalizing details of the partnership, the city is officially moving forward with the plan. 

This past December, the Santa Cruz City Council voted unanimously to begin the $45 million fiber network. Cruzio intends to complete the project in the next 3 years, bringing next-generation, high-speed Internet access to the home of the UCSC banana slugs.

International Excitement

With the network given the green light, the city was abuzz. The open access Fiber-to-the-Home (FTTH) network will provide new opportunities for entrepreneurship throughout the city. The Santa Cruz Sentinel reported that the project is drawing interest from across the globe:

“Already, we haven’t even built the fiber network and people are already excited to work with us,” said Economic Development Director Bonnie Lipscomb, adding that a delegation from Beijing, China, visited Santa Cruz last week to discuss the project.

The Financial Plan

Through the partnership with Cruzio, the city will take out a financing bond that will be repaid by Cruzio’s customers on the network. Any funding gaps will be paid for 80% by Cruzio and 20% by the city. In the end, the city will own the infrastructure that Cruzio will manage. 

The decision to create the network has not been taken lightly. The Santa Cruz Chamber of Commerce CEO Bill Tysseling, spoke to the years of consideration and deliberation before this decision:

“It feels good to [have it] be passed, we had this conversation several decades actually.”

The early 2000s created a boom of both public and private wireless projects throughout the U.S., but many struggled with unrealistic expectations and flopped. Successful muni wireless networks transformed themselves, adapting to the changing needs of the communities. Some, such as Sandy, Oregon, have transitioned to Fiber-To-The-Home (FTTH) networks where the high-speed fiber-optic cable is hooked up directly to the home. Others repurposed their networks to provide other needed services -- like in Lompoc, California.

Lompoc transformed its $4 million muniwireless network, LompocNet, into a full-fledged Broadband Utility. Originally, the city council hatched the idea of a subscriber-based Wi-Fi network, but times changed quickly. Now, the Broadband Utility primarily provides much-needed internal connectivity for city services.

New Role: City Services

In this small city of about 42,000 people, the Broadband Utility operates a Wide Area Network (WAN) for municipal services. The electric and water utilities use the network for their smart-meters, which automatically provide usage information to the city utilities. Police video cameras transmit their feeds across the service, improving public safety. The Broadband Utility also provides the city’s phone and data services, and and has begun to connect some municipal buildings with fiber-optic cable. The Broadband Utility’s role has increased in importance; Lompoc’s franchise agreement with Comcast expired at the end of 2014, so now the Broadband Utility is beginning to function as an Institutional Network, connecting public buildings.

Lompoc’s approach to broadband may seem inverted to those used to the concept of incremental build-outs, but it worked for the city. In an incremental build-out, a small section of the network is built for a specific purpose and the revenues from that section pay for the next expansion. Lompoc decided to do the opposite: blanket the city completely and immediately with low-cost Internet access via Wi-Fi.

From Being a Flop to Being On Top

The Schools, Health & Libraries Broadband Coalition (SHLB) will present the first AnchorNETS Broadband Summit this November 16th & 17th in Mountainview, California. The event is designed to help leaders from anchor institutions such as schools, hospitals, and libraries connect and learn about solutions to help them achieve gigabit connectivity. The conference will be held at the Computer History Museum. Our own Christopher Mitchell will be there as well.

Keynote Speakers include:

• Evan Marwell, CEO & Founder, EductionSuperhighway
• Catherine Sandoval, Commissioner, California Public Utilities Commission (CPUC)
• Sunne Wright McPeak, CEO, California Emerging Technology Fund

Attend AnchorNETS to:

• Gain information and practical guidelines to access funding from Federal, State and Local government
• Learn about the economics of middle-mile fiber deployment and the role of next generation wireless technology
• Develop new community engagement practices and programs

More information is available on the web: www.anchornets.com, where you can check out the agenda, information on the speakers, and register online.

Download the flyer below for more information.

ONE Burbank, the dark fiber network that has provided connectivity for studios since 1997, is bringing a number of benefits to Burbank schools and taxpayers, reports the Burbank Leader. The network is saving public dollars, generating revenue, and providing better connectivity to schools and public facilities.

Five years ago, we reported on Burbank's asset and its primary customers - Hollywood studios. That trend has continued but now the network generates even more revenue. As a result, all electric customers served by Burbank Water and Power save with lower utility bills:

Last year, ONE Burbank generated $3.4 million in revenues for the utility, [General Manager Ron] Davis said in May. That’s compared to roughly $205,000 in 1997 and about $1.5 million five years ago, according to data Davis presented to the City Council.

“The bulk of that [$3.4 million] is all margin and helps keep electric rates down,” Davis said. “[We do] basically zero marketing and collect that margin.”

By connecting city facilities rather than leasing from a private provider, Burbank has all but eliminated past telecommunications expenses, lowering costs by 95% and saving, $480,000 in total thusfar. The school district has saved $330,000 since connecting to ONE Burbank.

ONE Burbank is also providing four times as much bandwidth to the school at a much lower rate that it once paid to the private sector, cutting its costs from $18,000 per year to $9,000 per year.

In August, Burbank Water and Power began using the dark fiber network as backhaul for free Wi-Fi service available throughout the city. There is no service level guarantee but it is open to any device:

“It’s just out there if you can get it,” Ron Davis, the utility’s general manager, told the City Council last week.

The dark fiber has helped retain and attract business, reports city leaders, and they want to continue the current trajectory to bring in high-tech companies and turn Burbank into a "Silicon Beach."

This is not our first look at problems with communications service in rural Mendocino County, California, but we continue to see concerning stories coming from it. The tenuous situation along the North Coast, where large private providers have refused to invest in redundant networks, is heightening concern among first responders, community leaders, and citizens.

The problem stems from the tendency of incumbents to neglect existing copper systems that need to be replaced with fiber based VoIP. Randy MacDonald, assistant fire chief of the Camptche Volunteer For Department of rural Mendocino County recently presented the department's concerns to congressional and regulatory staff in D.C. The Press Democrat quoted him in a recent article that examines the issue in their region:

“We’ve built a second-to-none 911 system,” MacDonald said. But “we’re almost by default allowing it to become degraded as technology changes.”

For decades, people have been paying bills with an expectation that they were helping to maintain the network. Uncle Sam has spent billions subsidizing carriers to ensure the network worked. But now it seems that some carriers are preparing to harvest as much as they can without delivering reliable communications to those paying the bills:

Verizon’s biggest union, the Communication Workers of America, has accused the company of refusing to fix broken copper lines and pushing customers to move to fiber or wireless systems. Verizon has flatly denied the charges.

Some, like MacDonald, believe other telecommunications corporations are attempting to abandon their copper systems through neglect.

“There is a lot of concern the telecom giants are basically allowing the copper infrastructure to just deteriorate,” Mendocino County Supervisor John McCowen said.

The FCC knows that there is growing concern over the attitude of the incumbents. In order to address some of these problems in Mendocino and similar rural areas as we trade in copper for glass, in August the FCC adopted a number of rules for carriers: