About 15 years ago, two small cities in western Oregon faced an all too common predicament for rural areas. The Internet Service Provider (ISP) told they would not see high-speed Internet access until 2020. Taking matters into their own hands, the cities of Independence and Monmouth decided to collaborate on a project to bring the latest technology to their communities. 

Together they built a jointly owned Fiber-to-the-Home (FTTH) network, known as MINET (Monmouth Independence Network). Today, the network supports economic development and agricultural innovations. This piece focuses on only one of the cities, Independence, in order to provide an in-depth look at the community impact of the network.

Affordable & Reliable Internet Service

At the time, FTTH was almost unheard of. Even today, the technology is available to only a quarter of the entire U.S. population. MINET offers affordable, reliable connectivity for the 18,000 residents of both communities. The network has a low-cost option available to everyone of 2 Megabits per second (Mbps) for $10 per month. Other Internet access speeds available are:

Residents can also subscribe to triple-play bundles of Internet, voice, and video services.

Took Time to Develop

MINET has faced a difficult financial situation even though the network has brought many benefits and opportunities to the community. 

The League of Oregon cities provided a quick case study of the network in 2011. In the late 1990’s, the two cities developed a feasibility study only looking to connect the governmental buildings and the businesses. After studying the potential for offering services to residents, the cities decided to divide the project into two phases. Phase I: build fiber loops. Phase II: build the last-mile to homes and business and offer retail services. 

About a year ago, we reported that Rock Falls, Illinois, had decided to develop a fiber network to offer connectivity to local businesses. Now, the town of less than 10,000 is closer to expanding that network to offer Gigabit Internet access and voice to residents.

Considering Expanding Services

In September, community leaders began considering the expansion after consultants suggested investing in Fiber-to-the-Home (FTTH) as the best way to make use of the city’s resources. They offered a “fiberhood” option so Rock Falls Electric Department could connect new subscribers incrementally; they suggest starting with business corridors where many commerical entities are already taking service. The fiberhood approach requires people in specific areas of the city to sign up first, then after a certain percentage of the households committ, construction begins.

Rock Falls began planting fiber and conduit in the 1990s and have connected the municipal electric utility substations, schools, and other municipal facilities. They have also leased out excess capacity to private providers who want to offer connectivity to commercial customers in prior years.

Funding - It's Complicated

The fiber backbone is already in place but a complete citywide FTTH system will cost approximately $13 million, estimate consultants. After consulting bonding professionals, city leaders discovered that they needed to consider a few issues before deciding how to proceed. SaukValley.com reported on the financing discussion:

“We need either a feasibility study or our most recent audit that includes revenues from the broadband business to show we can make our bond payments,” [City Administrator Robin] Blackert said. “But a new feasibility study would cost us between $60,000 and $80,000, and we have no past revenue history with the new utility.”

A northern Minnesota county has been approved for federal funding to bring high-quality Internet access to some of the community's most rural residents. Lake County (population: about 11,000) has been building Lake Connections, a county-owned community network, for the past few years. People living in the densely wooded region have always lacked adequate Internet service, but with this funding, they will have better connectivity than many city dwellers.

The Federal Communications Commission (FCC) recently authorized $3.5 million for Lake Connections through the Rural Broadband Experiment program. Lake Connections previously faced numerous delays, but this next stage of the project is ready to move forward.

Despite Best Efforts, Delays

Lake County has long been working towards a more connected future by building a Fiber-to-the-Home (FTTH) network. The massive project covers almost 3,000 square miles, connect almost 100 community anchor institutions, and will provide connectivity to over 1,000 businesses. Grants, loans, and matching local funds to complete the project add up to approximately $70 million.

The county obtained federal stimulus funding through the American Recovery and Reinvestment Act (ARRA) in 2010 (see our 2014 report, All Hands on Deck: Minnesota Local Government Models for Expanding Fiber Internet Access). Incumbent providers, Mediacom and Frontier, delayed the project by alleging rule violations and fighting for ownership of utility poles. By July 2014, however, the fiber network started serving its first 100 customers.

Forty-three percent of residents in Erie County, New York, do not have access to high-speed Internet access. That’s a drag on the local economy, but the situation could soon change. Erie County residents and businesses have the opportunity to comment on their needs by taking a survey on local Internet connectivity. Residents and businesses in Erie County, New York, can fill out the survey at eriecounty.crowdfiber.com.

An Ongoing Effort, State Support

The survey features a speed test and a few quick questions, which will be used to map where folks lack connectivity. Governor Andrew Cuomo’s half a billion dollar New NY Broadband Program funds the survey. In August 2016, the governor stopped at the University of Buffalo in Erie County to speak about the plan, saying, “Erie County is our first priority.” 

This survey is the next step in an ongoing effort to bring 21st century connectivity to the county. In late 2015, Erie County started looking for an organization to study the feasibility of a countywide high-speed network. With the survey results, officials will be able to choose the best path forward. On December 5, county officials hosted a public meeting to discuss the survey and how they will use the results.

There are about 1 million people living in the far western county; approximately 260,000 of them live in the county seat of Buffalo. The community has considered the potential benefits of a municipal fiber network for some time and has been doing their research. Back in early 2015, they released a report that indicated a potential 1.1 percent increase in the county's GDP (approximately $450 million annually) with better connectivity.

"I Can Barely Do Anything" 

Since late 2015, the small city of Fairlawn, Ohio, has been planning and preparing for a network with next-generation connectivity. The city is building the network, FairlawnGig, which will offer speeds of a Gigabit (1,000 Megabits) per second to subscribers. All speed tiers will be symmetrical, so upload and download will be equally fast.

Lightwave reports that FairlawnGig has officially connected its first two business customers: RDA Hotel Management and the architectural firm David A.Levy & Associates.

Necessary Connectivity For Businesses

RDA Hotel Management officially signed up for the service and immediately experienced a 733 percent increase in Internet access speeds in its local hotel. The management company owns and operates the Hilton and Doubletree hotels throughout the nation. Two of the company's hotels have been connected to the network since early August as “beta customers” of the network. These “beta customers” (including hotels that hosted some Republican National Delegates) helped determine how well the network functioned, providing feedback on how to improve the experience for future subscribers. 

The local architectural firm David A. Levy & Associates is also pleased with the new connectivity. Neal Levy, business development director at David A. Levy & Associates described how the municipal fiber network has already improved productivity in the Lightwave article:

 "Prior to FairlawnGig, reliability was a serious issue and it took several minutes to save, transmit, and open a 50-MB file. Plus, our team couldn't work simultaneously in an AutoCAD [a design application used by many architect firms] file while it was auto saving or the file would freeze. Now it takes less than 10 seconds to open or save a file."

The FairlawnGig Story

This is the transcript for episode 230 of the Community Broadband Bits Podcast. Harold DePriest of Chattanooga, Tennessee, describes his role in building the fiber network in the city. This is an in-depth interview of over an hour in length. Listen to this episode here.

Harold DePriest: This fiber system will help our community have the kind of jobs that will let our children and grand children stay here and work if they want to. That is the biggest thing that has happened.

Lisa Gonzalez: This is episode 230 of the community broadband bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Chattanooga, Tennessee has been profiled in dozens of media outlets. It's a community reborn from one of the dirtiest cities in America, to what is now an economic development powerhouse. The city's publicly owned fiber optic network provides high quality connectivity that attracts businesses and entrepreneurs, but getting to where they are today did not happen overnight. In this episode, Chris has an in depth conversation with Harold DePriest, one of the men behind bringing fiber optics to Chattanooga. He's retired now, but as president and CEO of the electric power board, he was involved from the beginning. Harold describes how the electric power board made changes both inside and out, and went from being just another electric utility, to one that's considered one of the best in customer service in the country. The interview is longer than our typical podcast, but we think it's worth is. Now here are Chris and Harold DePriest, former CEO and president of the electric power board in Chattanooga, Tennessee.

Christopher Mitchell: Welcome to a community broadband bits discussion. A long form discussion, a little bit different from what we normally do, with someone that I have a tremendous amount of respect for, Harold DePriest. Welcome to the show.

Harold DePriest: Thank you. It's good to be with you Chris.

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.” 

Nguyen noted:

“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.”

Expectations, Planning

The Federal Reserve is responsible for setting interest rates and executing monetary policy in the United States, but many people don’t realize that the agency also has a hand in community development. This summer, the Federal Reserve Bank of Dallas released a report, Closing the Digital Divide: A Framework for Meeting CRA Obligations, which includes information for banks about funding digital inclusion programs and community networks.

The report, published in July, states:

“Access to broadband has become essential to make progress in all areas of community development—education and workforce development, health, housing, small-business development and access to financial services.”

Closing the Digital Divide is important not only because it provides substantial information for banks, but also because it indicates federal support exists for community-based infrastructure improvements. The report discusses improving Internet access for low and moderate-income individuals and neighborhoods.

Using The Community Reinvestment Act To Improve Infrastructure

From the 1930 until the late 1970s, many banks denied lending to individuals and organizations based on their location. The practice is called “redlining” after the red ink that outlined low-income neighborhoods on a map, and was made illegal when Congress passed the Community Reinvestment Act (CRA) in 1977. Under the CRA, banks must to use the same evaluation criteria for all loan applicants regardless of the neighborhood they live in, which expands lending to include low and moderate-income (LMI) individuals. The Federal Reserve assesses banks’ performance under CRA guidelines, which bring about $100 million in capital to low and moderate income areas per year through various projects. Improving Internet access is an increasingly large portion of these initiatives.

In The Weeds