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New Municipal Broadband Feasibility Study Underway in Firestone, CO
The Board of Trustees for the city of Firestone, CO is evaluating the feasibility of a new municipal broadband service for this growing town of about 10,000 people that sits just 30 miles north of Denver. This according to a recent report in the Times-Call newspaper in Longmont, Colorado. The feasibility study will compare Firestone’s existing telecommunications infrastructure with those in nearby communities such as Longmont and Boulder that already have municipal networks. It will also assess the potential for growth of the service in Firestone to a nearby 3,500-home community development project.
It would be travesty to build a 3,500 home development without having a plan for high quality Internet access. Even if CenturyLink or Comcast were to deploy fiber optics there, the community should ensure there are plans for conduit or an open network to allow multiple service providers to provide a real choice.
A 2005 Colorado state law barring municipalities from providing internet service to their citizens has been an obstacle for Longmont and Boulder in their pursuit of their own city-run broadband services. Telecommunications companies in the Longmont area spent $200,000 on a campaign that helped defeat the referendum in 2009 and $400,000 more in 2011. But citizens in Longmont successfully voted in the 2011 referendum to exempt their town from the law and build their own community broadband network. As we wrote in May, Longmont’s NextLight fiber-based municipal broadband service, which started just 2 years ago, is now among the fastest internet services in the United States.
Ammon, ID Experimenting with Open Access FTTH Network
We have covered the small Idaho city of Ammon before, but the people there always seem to be innovating. A few weeks ago, the city took first place with an ultra-high speed app in a National Institute of Justice competition. That utlra-high speed came from the city’s fiber network built for municipal buildings several years ago. The network has since expanded to connect the schools and some businesses.
Now, residents of Ammon might also get to experience high speed Internet. The city is conducting a survey, called Get Fiber Now, to determine interest in building a unique open access network. The first area with a 70% take rate will have 300 homes added to the network.
Ammon's technology director Bruce Patterson has a plan to make this unlike any other open access networks in the world. The fiber will be partitioned to have multiple services (such as telephone and television) on one strand. Our Christopher Mitchell has called the idea "open access on steroids” and the "best shot at demonstrating what can be done as far as innovation on an open network.” Patterson now has a pilot project of about seven homes connected to the experimental network with symmetrical speed of 1Gbps.
The city intends to have the plans for the open access FTTH network finalized for this next spring and is looking at a 20- to 30- year bond to cover the costs.
Local news coverage has the rest:
Santa Cruz Fiber Project with Cruzio
Santa Cruz, California, and its 62,000 people with poor Internet connectivity near Silicon Valley, could be one of the larger municipalities to develop a citywide fiber network. The Santa Cruz Fiber project, which was announced on June 24, 2015, would be an open-access public private partnership (PPP) with the city constructing the network and a private company, Cruzio, serving as network operator. The plans are preliminary, but the announcement highlighted the project’s emphasis on local ownership:
“A locally-owned, next-generation broadband network operated openly and independently and built for Santa Cruz, [the Santa Cruz Fiber Project] is uniquely tailored to fit the diverse needs of the Santa Cruz community.”
Cruzio is one of the oldest and largest Internet service providers in California. Completely locally-owned and staffed, Cruzio is rooted in Santa Cruz County. The company’s name perfectly describes it. Cruz- from Santa Cruz and -io from I/O (Input/Output, communication between an information processing system and the rest of the world). Our Christopher Mitchell is gushing over the name and says: “I seriously love it.”
Fiber is not a new commodity in Santa Cruz. Since 2011, Cruzio has installed fiber in several of its projects, and the fiber has wooed some 30 entrepreneurs and solo practitioners to stay in the downtown area at the Cruzio Works, a co-working space. Last November, Central Coast Broadband Consortium commissioned a study of the fiber networks in Santa Cruz (paid for with a grant from the California Public Utilities commission). They discovered more fiber under the city of Santa Cruz than in any other city in the counties of Santa Cruz, Monterey, and San Benito. Unfortunately much of it belonged to incumbent providers like Comcast and AT&T who are loath to lease dark fiber or make affordable fiber connections available to local businesses and residents.
Nebraska Farmer Wants Fiber, Won't Be Ripped Off By Windstream
Windstream has the distinction of being one of the worst providers we have ever covered from consumers' perspective, but in rural areas many people have little or no choice. The latest Windstream debacle involves a Nebraska farmer, an outrageous price quote, and a local company that is taking on the project for about one-ninth of Windstream's estimate.
Ars Technica recently introduced us to Nelson Schneider, CTO of the Norman R. Schneider Family Trust Farm in Ceresco, Nebraska. Like many other farms today, the Schneider business needs fast, reliable connections for a variety of reasons including checking ever changing grain prices. Schneider had Windstream's DSL for $80 per month, but his promised speeds of 1.5 Mbps were clocked at 512 Kbps download and 256 Kbps upload, making business online impossible.
When he attempted to take advantage of the business class speeds Windstream advertised online, the company dismissed him. Schneider had to file a complaint for false advertising with the FCC just to get Windstream to negotiate. He wanted fiber, was willing to pay for construction costs, and considered it an investment in the vitality of the farm.
Windstream told him it would cost Schneider $383,500 (gulp) to install 4.5 miles of fiber from his property to its facilities in town. Even though Windstream's fiber network map shows they run fiber about one-half mile away, they insisted he would need to connect to the facility farther away. When he asked about connecting to this closer line, Windstream refused to connect him. The company would not provide a reason when Ars asked for a reason.
Even though Schneider was prepared to pay thousands of dollars to bring fiber to his farm, such a preposterous quote and Windstream's refusal to commit to anything higher than 10 Mbps symmetrical were too much. He contacted Northeast Nebraska Telephone Company when he learned that they had been connecting local farms with fiber. Soon an NNTC executive visited the farm and the two talked about the possibilities. The final estimate was $42,000 or about one-ninth what Windstream demanded and now NNTC is working with Schneider to make the project easier:
Bald Head Island Reopens RFP to Find The Right Partner
After searching for a suitable partner, the Village of Bald Head Island in North Carolina has reopened its RFP for a gigabit fiber network. Apparently, the community received four responses but no proposal provided the level of detail they require.
In order to give respondents another opportunity and to offer new candidates a chance, Bald Head Island leaders chose to release the RFP a second time with additional questions and a responsibility matrix. No response will be considered without answers to these new appendices. All three documents are available on the Village website.
The Village of Bald Head Island is home to approximately 160 year-round residents, but numbers swell to 7,000 during the busy tourist season. Vacation homes and part-time residents bring the potential fiber service area up to 2,500 but incumbents AT&T and Tele-Media don't see the value of bringing fiber to such an environment. The StarNews Online described community leadership's frustration and decision to move forward:
"Broadband is not available on Bald Head Island," said Calvin Peck, the village's manager. "It just isn't, and none of the current providers have plans to invest the money to make it available, so the village council feels it's an important enough issue to spend village resources to make it happen."
While Bald Head Island looks for a partner it also plans to ask voters if they agree to pursue better broadband. Voters will decide on November 3rd if they support a $10 million bond issue. Community leaders will focus on revenue bonds, one of the most common ways to finance municipal network deployment. This mechanism shifts repayment to those who use the network, reducing financial risk to the community at large.
Clearly community leaders understand that the time to act is now:
Murfreesboro Wants to Use Existing Fiber for Better Connectivity
In the center of Tennessee sits Murfreesboro, the fastest growing city in the state with 108,000 people and one of the fastest growing cities in the U.S. (Just 10 years ago there were only 68,000 residents.) Murfreesboro is also one of the next communities to show an interest in a publicly owned fiber network to improve connectivity.
In an August press release [PDF], Murfreesboro Electric Department (MED) described their existing 19-mile fiber infrastructure, used for communication and control purposes for the electricity distribution system. The fiber was deployed in 2008, says MED General Manager Steve Sax, and the utility is now making plans to use spare fibers for Internet connectivity. MED is in the process of expanding its network by an additional 20 miles.
Sax also stated that MED is working with Middle Tennessee State University to develop a fiber optics pilot project but did not offer details other than it is "very similar to what Google is doing in Nashville."
MED and the Middle Tennessee Electric Membership Cooperative (MTEMC) recently entered into negotiations for MTEMC to acquire the MED. The city of Murfreesboro is in the center of the MTEMC service area and the two have been duplicating efforts in some areas. The city and cooperative signed a memo of understanding in June and the process is moving forward slowly. MTEMC serves over 200,000 cooperative members in a four county service territory; the MED provides electricity to approximately 56,000 customers.
MTEMC does not offer telecommunications services at this time but according to a Daily News Journal article, the cooperative is investing in fiber:
"We have been working with an enterprise ... on a fiber network," said [Brad Gibson, MTEMC chief business officer] about the utility that covers Rutherford, Wilson, Williamson and Cannon counties.
MTEMC has contracted with a private company to install and manage its fiber network but the utility is also researching the possibility of developing its own network, he said.
"We are dedicated to fiber," Gibson said.
Traffic Project Gets Fiber in the Ground in Winston-Salem, NC
Winston-Salem struck up a smart deal with the North Carolina Department of Transportation in 2011. Four years later, that agreement allows the city to move forward with its vision for an I-Net.
The Winston-Salem Journal reports that the City Council recently approved $826,522 for networking equipment to light up city owned fiber installed by the NCDOT. The agency has been upgrading area traffic control systems, a project estimated at around $20 million. Winston-Salem took advantage of the opportunity and paid the agency $1.5 million to simultaneously install its own fiber in the state conduit.
“The city was able to have the network built at only the cost of the fiber,” [city information systems department Chief Officer Dennis] Newman said. “They (state traffic contractors) are running fiber optic cable all around the city to where all the traffic lights are at. This will enable us to connect to all facilities all over the city – fire stations, public safety centers, satellite police stations – right now there are about 40 locations that we have targeted to connect to.”
As is typically the case, Winston-Salem currently pays private providers for connections at each facility but when the new I-Net is up and running, they will be able to eliminate that expense. The new voice and high-speed network will outperform current connections, described in the article as "out-of-date." City officials also told the Journal that some municipal offices have no Internet access at all but will be connected to the new I-Net.
A number of other communities have taken advantage of partnerships with state and federal transportation agencies during traffic signal upgrades. Martin County, Florida; Aurora, Illinois; and Arlington, Virginia saved considerably by collaborating during similar projects.
Hudson Lays Out Details for Its Municipal Gigabit Network
Hudson, Ohio's upcoming municipal network, Velocity Broadband, may be serving commercial customers as early as September, reports the Hudson Hub Times. At a July 22nd Rotary Club meeting, Assistant City Manager Frank Comeriato presented details on the plan. The city has no plans to serve residents but once business services are in place, they may consider a residential build out.
The gigabit network, to be owned and operated by the city of Hudson, will be deployed incrementally. Incumbents Time Warner Cable and Windstream serve local businesses but a majority complain of unreliable connections and unaffordable prices in the few places where fiber is available.
Earlier this year, the city conducted a survey and businesses responded:
"They wanted better service and speed," [Comeriato] said. "After only two vendors responded to the city to offer the service, the city decided it could offer the service like it offers public power, water and other infrastructure."
Hudson officials realize that it connectivity is an essential service for economic development and that businesses have no qualms with relocating to places where they can get the bandwidth they need:
"Economic development is 80 percent retention, and Hudson businesses are unhappy with their current service, he added. "They want something like this."
Hudson Public Power has been preparing by training crews to deploy the infrastructure. Like other communities that have recently decided to invest in municipal networks, Hudson will focus only on Internet access and voice.
Earlier this year, the City Council approved the initial $800,000 capital expenditure to begin the deployment. According to Hudson Communications Manager Jody Roberts, the city expects to spend another $1.5 million in 2016 on infrastructure before they light the network, scheduled for 2016.
Carl Junction Pulls Out of Public Private Partnership
In the spring, we reported on a public private partnership agreement between the community of Carl Junction and Wi-Fi provider Aire Fiber. According to City Administrator, Steve Lawver, the City Council had second thoughts and pulled out of the deal.
Even though the partnership has ceased to be an option, the people of Carl Junction will still have better connectivity. Aire Fiber found the interest level was so intense that it will independently deploy the equipment to serve the community's 5.6 square miles and approximately 7,400 people.
As part of the abandoned partnership agreement, the city would have paid for and provided locations to mount necessary equipment. Aire Fiber would have handled installation, management, and technical aspects needed to keep the network up and running. In exchange, the city would have received 10 percent of the gross revenue from the network. The system would have cost an estimated $400,000 - $450,000 to deploy and both entities estimated just 10 percent of the market would have allowed them to break even.
Now the city has typical water tower lease agreements with Aire Fiber. Each tower mounting Aire Fiber equipment brings in $100 per month.
Carl Junction has been searching for better Internet access for its businesses, schools, and residents for several years. In 2012 they commissioned a feasibility study and decided in 2013 to move forward with plans for a fiber network. Unfortunately, the community had to seek other options when it chose not fund the $5.2 million project.
As a post mortem, Lawver advises other city officials to take the time to educate elected officials and not [no-glossary]rush [/no-glossary]the process, especially when the time comes for final approval.
Our process from FTTH feasibility to this final agreement took 4 or 5 years. Be patient. Understand that if you get down to the final agreement there is a good chance you may be the only person left that remembers the whole process.
Cleveland Investigating Fiber Pilot Project in Tennessee
After a feasibility study on the possibility of a municipal triple-play fiber network left Cleveland Utilities feeling "…not overly optimistic…" community leaders have decided to rethink their strategy. The utility board recently voted 5-0 to look deeper at a network that would offer only Internet and voice services.
Rather than study the feasibility of serving the entire community, CU wants to first try their hand at working on a limited area with a pilot project. The next step is to work with a consultant that will conduct a more focused feasibility study and develop a business plan.
In June, CU CEO Ken Webb told the board:
"I will go ahead and tell you that it's not overly optimistic about us being able to provide 'triple play' [Internet, television and phone] services," Webb said. "The capital requirements are extensive, and the startup cost could present issues."
"There is a possibility of offering services that are not full-blown services," Webb said. "There are a lot of decisions yet to be made, and a lot of review has yet to take place."
After more review of the study, Webb asked the board at the July meeting to consider further consideration for the pilot project, much like the process in Erwin, Tennessee. The Times Free Press covered the meeting where Webb reported that Erwin expected to break even on its pilot project once it took on 180 customers. After recently commencing the project, it quickly signed up 150 subscribers.