Just days ago, voters in more than a dozen Colorado communities chose to opt out of SB 152 the way Rio Blanco County did in 2014. The rural western county has since started connecting residents and businesses to high-quality Internet access via its publicly owned open access fiber optic infrastructure. Due to high demand, they recently announced that they’re making changes in their business plan and taking a more direct role in operations.

Until now, Rio Blanco County has worked with Colorado Fiber Community (CFC) under a three-layered plan in which CFC contracts with the county to perform maintenance and operations on the network that the county owns. Local ISPs LAI and Cimarron use the infrastructure to deliver services to the public and work directly with subscribers. The county has decided to end its agreement with CFC and take over operations and maintenance.

Too Much Good Internet

The popularity of the project created its own problems when the demand for service far outpaced estimates. CFC budgeted $1.5 million to fund connections in a timely manner but quickly depleted those funds. The county had expected a take rate of 40 percent, but this September CFC anticipated a take rate of 75 - 80 percent.

Without additional funding to expedite installations, CFC would have been limited to connecting 10 - 15 premises per month. Such a rate would only meet about ten percent of the expected demand, when considering more than 100 premises had been connected in August.

Rather than dramatically slow the rate of installations, Rio Blanco County Commissioners decided in September that the county would pay for the first $1,160 required to connect each premise. Property owners are responsible for any additional costs. The Commissioners voted to use reserves to fund the remaining drops.

County Commissioner Si Woodruff told the Herald Times earlier this year:

After a long and arduous process, the folks in Mount Washington, Massachusetts, were finally able to light up their publicly owned fiber optic network last week. According to resident and Select Board Chair Eleanor Tillinghast, “We are thrilled. We’re going to be the envy of everyone.”

It's Finally Here

As we reported last month, the community was eagerly anticipating the opportunity to finish up the last steps to begin connecting subscribers from the town's 146 premises. Approximately 100 are connected and will take services from local Internet service provider Crocker Communications. In addition to providing Internet access, the ISP will handle billing for the city, provide 24/7 tech support for subscribers, and monitor the network. The infrastructure will be maintained by the company that built it for the city, NextGen Group. Mount Washington owns the infrastructure.

Gigabit connectivity is available, but most subscribers have opted for 500 Megabits per second (Mbps). All speeds are symmetrical, which makes Mount Washington’s network valuable as an economic development tool. Community leaders are already seeing in increase in real estate transactions that they relate to the new network. “People may have ruled Mount Washington out before,” Select Board Member Brian Tobin told the Berkshire Edge. “But we just catapulted ahead of other towns in terms of amenities.” As a potential quiet retreat for New Yorkers located in the Taconic Mountains, Tobin and Tillinghast expect to lure more urbanites who want to work remotely for part of the week. Tobin also has a Manhattan apartment and says that his Internet access speeds in the city are only about 117 Mbps download with slower upload speeds.

A Long Process That's Paid Off

With the best intentions, Kentucky announced in late 2014 that it would build out a statewide open access fiber optic network to at least one location in each county to encourage high-quality connectivity in both urban and rural communities. Hopes were high as rural residents and businesses that depended on DSL and dial-up envisioned connectivity to finally bring them into the 21st century. After almost three years and multiple issues that have negatively impacted the project, legislators and everyday folks are starting to wonder what's in store for the KentuckyWired project. 

Local Communities Are Best Suited To Deploy Community Networks

There is no one-size-fits-all method of deploying across a state filled with communities and landscapes as diverse as Kentucky. From the urban centers like Louisville and Lexington to the rocky, mountainous terrain in the southeastern Appalachian communities, demographics and geography vary widely. But most lack modern Internet access and local ISPs have found it hard to get affordable backhaul to connect to the rest of the Internet.

There are several municipal networks in Kentucky, some of which have operated for decades. In addition to Glasgow, Paducah, Bowling Green, Frankfort, and others, Owensboro is currently expanding a pilot project that proved popular. As our own Christopher Mitchell discussed at the Appalachia Connectivity Summit, several cooperatives have made major fiber-optic investments in the state.

When it comes to connecting residents and local businesses, we strongly believe local entities are the best choice. Local officials have a better sense of rights-of-way, the challenges of pole attachments, and the many other moving pieces that go into network investment. Projects with local support see fewer barriers - people are more willing to grant easements, for instance. 

Mount Washington, Massachusetts, is set to light up its new Fiber-to-the-Home (FTTH) network this month. By “building our own Fiber-to-the-Home broadband network, we are taking an important step in securing our community’s long-term vitality and sustainability,” says Selectboard Member Gail Garrett. 

Mount Washington Recap

Mount Washington is nestled within the forested Taconic Mountains area located in the southwest corner of the state. The roughly 150 full-time residents have been frustrated with the lack of connectivity. "Everybody's had it with their current connections” said Garret and believes the town “deserves the same opportunity to connect to the internet as those in larger communities.” 

The final estimates for the network came in at $603,000 but the town planned for any unanticipated make ready or dig costs and prepared for a high estimate of $650,000. To fund construction, Mount Washington authorized the use of $250,000 from their stabilization fund in 2015, received $230,000 in federal and state funds from the Massachussetts Broadband Institute (MBI) earlier this year, and established a plan to borrow the remaining $400,000 through a state loan program. This spring, received an additional $222,000 grant from the Executive Office of Housing and Economic Development, which will allow them to pay down the debt sooner and have the network paid off within five years.

The FTTH network is set to provide residents who opted in, over 60 percent of the town, with up to 1 gigabit of upload and download speeds. To opt in, residents deposited $300 per household and committed themselves to three years of data and telephone service on the FTTH network.

On August 1, 2017, the Franklin County Infrastructure Bank awarded Grove City, Ohio a $2 million loan to support their construction of a municipal fiber optic network. 

The Grove City Plan

According to the city’s Request for Proposal (RFP), the city is focused on first establishing an institutional network (I-Net) and plan to expand it to serve local businesses over time. The initial fiber optic network will connect Grove City to the South-Western City Schools, the townships of Jackson, Prairie, Pleasant, and the Solid Waste Authority of Central Ohio (SWACO). The goal is to create a network with a baseline of ten gigabits symmetric service, ten times the speed of current connections provided by Spectrum (formerly Time Warner Cable).

According to Mayor Richard “Ike” Stage, the increase in network speed will attract businesses and will generate a 100 new jobs for the city. Josh Roth, Senior Program Coordinator for Economic Development and Planning, has said “that Grove City has committed to one hundred jobs over the next three years.”

During the August 1, 2017 general session, the Franklin County Board of Commissioners  passed the resolution to authorize the loan to the city of Grove City. 

Franklin County Commissioner Kevin L. Boyce celebrated the project:

“[T]he fiber optics really makes a difference because companies will look at whether to expand or move there [Grove City]. It could be a deciding factor. Those are jobs that are retained that you may not see."

Over the past several decades, the population of Somerset County, Pennsylvania, has incrementally jumped up and down, but today's population is the same as it was in 1960. In order to boost economic development and encourage growth with more jobs, community leaders are deploying fiber for better connectivity in several industrial areas.

Financial Help For Fiber Connectivity

In May, U.S. Department of Commerce’s Economic Development Administration (EDA) announced that they would provide a $569,000 grant to the county to help fund the project. The EDA consider the project worth while because they expect the project to retain 20 existing jobs, generate 42 new jobs, and stimulate $25 million in private investment.

County officials intend to combine the EDA grant with an additional grant they received in January from the Appalachian Regional Commission. The ARC grant of almost $949,000 will allow Somerset County to dedicate approximately $1.5 million to run fiber four industrial parks. The County will match the grant award in order to fully fund the 22-mile network, which will expand existing Somerset County fiber infrastructure. View a map of the proposed expansion here.

Lack Of Meaningful Connectivity In Rural Pennsylvania

Recently, the County Board of Commissioners approved a contract with a firm to oversee the project. Long-term goals are to improve connectivity for approximately 1,100 businesses and 3,900 households along with local community anchor institutions (CAIs) and other entities. Approximately 18 percent of the people in Somerset don’t have broadband as defined by the FCC (25 megabits per second (Mbps) download and 3 Mbps upload) according to Form 477 data. The number is likely much higher, however, because Form 477 data tends to overstate coverage, especially in rural areas. Shortly after the county received the EDA award, two local Internet service providers expressed interest in delivering services via the new infrastructure.

This is the transcript for Episode 272 of the Community Broadband Bits Podcast. Christopher Mitchell sits down with three local leaders in Lyndon Township, Michigan, to discuss how the community decided to pursue a Fiber-to-the-Home network. Listen to this episode here.

Gary Munce: We had a voter turnout of 43 percent of the Township residents. That is by far and away the largest turnout for any August election in the history of voting in Lyndon township.

Lisa Gonzalez: This is episode 272 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. In August, the small community of Lyndon Township, Michigan voted to raise property taxes to fund publicly-owned fiber optic infrastructure. Marc Keezer, Gary Munce, and Ben Fineman from Lyndon joined Christopher to talk about the vote, their proposed network, and how they spread the word about improving connectivity in their rural community. Our guests also describe the work of Michigan Broadband Cooperative that's working on the Lyndon project. Now, here's Marc, Gary, Ben, and Christopher.

Chris Mitchell: Welcome to another edition of the Community Broadband Bits podcasts. I'm Chris Mitchell, and today I'm speaking with a cohort of folks from Lyndon Township in Michigan. I'll start with introducing Marc Keezer, Lyndon Township Supervisor. Welcome to the show.

Marc Keezer: Thank you, Chris.

Chris Mitchell: We also have Gary Munce who led the Lyndon Broadband initiative ballot campaign and is also a board member of the Michigan Broadband Cooperative. Welcome to the show.

Gary Munce: Thanks, Chris.

Chris Mitchell: And our third guest is Ben Fineman who volunteers as president of the Michigan Broadband Cooperative and is someone that I know has been working on this for a long time. Welcome to the show.

Ben Fineman: Thank you very much for having us, Chris.

The Fort Collins’ ballot measure that could amend the City Charter allowing high-speed Internet to become a municipal utility moves forward after a short legal scuffle. The question will be decided at the November 7th special election.

Failed Legal Petition

After the language of the ballot question was released following approval by City Hall, local activist Eric Sutherland filed a petition with Larimer County. Sutherland — well known for his numerous petitions wagered against the city, county and school district— claimed that the language “failed to consider the public confusion that might be caused by misleading language”. Sutherland also insisted the proposed City Charter Amendment isn’t legal under the Taxpayer's Bill of Rights (TABOR) amendment to the State Constitution. TABOR requires local governments to get voter approval to raise tax rates or spend revenue collected under existing tax rates. 

Attorneys representing the city of Fort Collins rejected Sutherland’s claims and maintained that the amendment isn’t covered by TABOR. A utility does not require voter approval to issue debt because it is legally defined as an enterprise, a government-owned business. Moreover, Fort Collins Chief Financial Officer Mike Beckstead testified that the bonds would be backed by utility ratepayers, not tax revenue. City Council explained in a statement that they included the $150 million-dollar figure in the ballot language in an effort to maintain transparency and show the level of commitment a broadband utility could require from the municipality. By including the dollar amount in the ballot language, the Charter would also establish a limit on any debt.

California Legislators have turned on their constituents living in rural areas who want to participate in the 21st century online economy. What began as a move in the right direction - allocating substantial resources to funding high-speed Internet infrastructure - has become another opportunity to protect big incumbents. It’s twice as nice for Frontier and AT&T, because they will be paid big bucks to meet a low Internet access bar.

Discretionary Fund

Democrat Eduardo Garcia, the main author on Assembly Bill 1665, represents the Coachella Valley, a rural area in the southern area of the state near Palm Springs. Democrat Jim Wood coauthored with eight others. Wood represents coastal areas in the northern part of the state, which was passed during the eleventh hour of the 2017 legislative session. Wood’s district and region has obtained several grants from the California Advanced Services Fund (CASF) that have helped to improve local connectivity. 

The CASF is much like CAF; both programs are funded through a surcharge on revenue collected by telecommunications carriers from subscribers. Since 2007, when California authorized the CASF, the legislature has amended the rules and requirements several times. Early on, CASF awards went primarily to smaller, local companies because large corporations such as AT&T and Frontier did not pursue the grants. Now that those behemoths have their eyes on CASF grants, they’ve found a way to push out the companies who need the funds and have shown that they want to provide better services to rural Californians.

AB 1665 allocates $300 million to Internet infrastructure investment and an additional $30 million to adoption and related local programs. Policy experts have criticized the legislation on several fronts. Consultant Steve Blum told CVIndependent:

The incumbents (large corporate ISPs) including AT&T, Frontier and the California Cable and Telecommunications Association jumped in and said, ‘We want the bill to be X, Y and Z.’ … Assemblymember Eduardo Garcia took it and started adding language that reflected the desires of these cable and telephone company incumbents.