In the city of Fullerton, California (pop. 140,000), privately owned infrastructure builder and operator SiFi Networks has turned on the first section of what will be a city-wide, open access Fiber-to-the-Home network. The project makes Fullerton SiFi’s first FiberCity — a privately built, financed, and operated open access network it plans to duplicate in more cities across the country in the future. When complete next fall, the Fullerton FiberCity network will pass every home and business in the city, with the company's subsidiary, SiFi Networks Operations, selling wholesaling capacity to as many Internet Service Providers (ISPs) as want to enter the market. 

A Different Approach

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SiFi’s FiberCity model remains somewhat unique in the United States, and is much more common in Europe and Asia. CEO Ben Bawtree-Johnson attributes their success to cracking the economic code for private investment in open access information infrastructure, which has seen more attention in recent years as investors and fund managers have seen opportunities. “[O]ur vision really is to create as many last-mile fiber optic networks as we can across the USA in a long term sustainable fashion,” Bawtree-Jobson remarked on an episode of the podcast last fall. “[W]e're all about long term, dry, low yielding, risk mitigated investments, so everything we do is based around 30-year plus type investments.”

Over the summer, Windstream and Colquitt Electric Membership Corporation announced that the two entities will work together to expand fiber optic Internet access throughout the electric co-op’s service territory in rural south Georgia. Windstream, the fifth largest telephone company in the nation, will maintain ownership of the newly deployed network and use it to offer its Kinetic broadband services to residents and businesses, while Colquitt, which has more than 45,000 members, will take advantage of the fiber connectivity to improve the management of its electric grid.

The announcement came one year after Georgia lawmakers clarified that electric cooperatives in the state are able to invest in broadband infrastructure to serve their members and established guidelines for co-ops that want to get into the business.

Working Out the Details

According to Telecompetitor, the project will expand Fiber-to-the-Home connectivity and gigabit speeds to Colquitt members who currently have access to Windstream’s much slower DSL services.

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Windstream plans to use Colquitt’s labor force and its Rights-of-Way and electric poles to help deploy the network, but the telephone company will own the actual fiber optic lines. Colquitt will receive an indefeasible right of use (IRU) for some of the fiber capacity for internal uses and smart grid applications.

The Covid-19 pandemic has made it difficult for local governments to hold in-person meetings, but the people of Block Island, Rhode Island, didn’t let it get in the way of bringing better connectivity to their community.

Late last month, voters in Block Island’s sole town of New Shoreham gathered (at safe distances) in the local school building and on its grounds to approve $8 million in borrowing to build an island-wide, municipal fiber network. Residents were overwhelmingly in favor of funding the broadband network, which would be the first of its kind in the state.

Townspeople and visitors alike have been dissatisfied with communications services on the island for many years. In response, the town built a fiber network to connect anchor institutions last year. Now, New Shoreham is preparing to expand its fiber network to island homes and businesses.

“I believe the vote to authorize the pursuit of the island-wide broadband will prove to be a transformational vote in this town’s history,” Town Manager Jim Kern told the Block Island Times. “And the level of support for the proposal reflected that.”

Coastal Community Needs Connectivity

New Shoreham is home to about 1,000 year-round residents, but the island, located about 9 miles south of the Rhode Island mainland and 14 miles east of Long Island, New York, is a popular destination for summer tourists. More than 40% of Block Island is currently protected via conservation easements.

We published our first profile of the largest cable and telecom providers in 2018, where we detailed the lack of real choices most Americans had when it came to high-quality, reliable broadband. At the time, we found that for the largest Internet Service Providers (ISPs) investment was correlated to competition rather than the regulatory environment. Monopoly ISPs expanded their Fiber-to-the-Home networks only in areas where they faced competition, and rural Americans were left behind as a result.

Our 2020 report, Profiles of Monopoly: Big Cable and Telecom finds that these key points remain true, and the report includes a host of new maps to show it. From the report:  

• Comcast and Charter maintain an absolute monopoly over at least 47 million people, and another 33 million people only have slower and less reliable DSL as a “competitive” choice.
• The big telecom companies have largely abandoned rural America — their DSL networks overwhelmingly do not support broadband speeds — despite many billions spent over years of federal subsidies and many state grant programs. The Connect America Fund ends this year as a failure, leaving millions of Americans behind after giving billions to the biggest firms without requiring significant new investment.
• At least 49.7 million Americans only have access to broadband from one of the seven largest cable and telephone companies. In total, at least 83.3 million Americans can only access broadband through a single provider.

Read the 2020 report Profiles of Monopoly: Big Cable and Telecom [pdf].

Maine’s High-Speed Internet Infrastructure Bond Issue, which we first wrote about a month ago, has passed. 76% of voters said yes to Maine Question 1, which authorizes the issuance of $15 million in general obligation bonds to fund projects which will expand broadband access for residents in underserved and unserved areas. Underserved areas are those where less than 20% of the households have speeds of 25 Megabits per second (Mbps) download and 3 Mbps upload. Unserved areas are those where broadband service isn’t offered by provider. The northern and eastern parts of the state suffer from particularly poor connectivity options. The money will join $30 million in additional federal, local, and private money, for a total of $45 million to be invested in the near future.

Where We Go From Here

The ConnectME Authority will administer the grants. It’s a significant injection of funds for the broadband authority, which has given out slightly more than a million dollars a year over the last ten years to build mostly last-mile connections and bridge the broadband gap. Passing the measure makes Maine the first state to bond to fund broadband projects, serving as an example to other states looking for avenues to do the same. 

As it stands, somewhere around 83,000 households lack access, though this doesn’t include those families who can’t afford to subscribe. The impact of this digital divide has become even more starkly outlined over the last six months, and since the future of telework relies on affordable, reliable, high-speed connections, states that don’t commit resources to the problem will fall further behind. 

A Concerted Effort

Alabama-based Cullman Electric Cooperative recently launched its new Fiber-to-the-Home network Sprout Fiber Internet, reported the Cullman Times.

In 1936, Cullman Electric was the first co-op in the state of Alabama to “energize” its electric lines. Today, it serves about 44,000 member-owners in the north central part of the state.

The first phase of the co-op’s project will extend the Sprout Fiber Internet network to 12,000 of those members, making gigabit Internet access available to both residents and businesses. Community members are looking forward to faster broadband speeds, while state and local officials hope the new network will boost the region’s economy.

“This is going to be a game changer,” State Representative Randall Shedd said at the announcement. “When rural Alabama has high speed Internet, then rural Alabama will be able to do work in rural Alabama.”

Connecting the Grid and Their Members

The electric co-op’s decision to invest in a Fiber-to-the-Home network was influenced in part by a petition organized by Baileyville residents dissatisfied with the poor broadband options available in the area.

Additionally, Cullman Electric was interested in developing a fiber network to connect its substations and better manage its electric grid. “It will cut down outage response times significantly and lay the foundation for us to take advantage of cutting-edge technology in the future,” shared CEO Tim Culpepper.

In less than a month Maine will hold a Special Referendum election which includes a measure with significant ramifications for Internet access in the state. On July 14, Mainers will be asked to vote Yes or No on Question 1, a $15 million Internet Infrastructure Bond Issue designed to bring high-speed service to the approximately 85,000 households in unserved or underserved areas.

The $15 million in general obligation bonds would go to the ConnectME Broadband Authority, which administers the state's broadband grants, to provide funding for projects with an emphasis on connecting unserved or underserved areas. This new funding would leverage an additional $30 million in matching federal, private, and local investments.

If voters approve the referendum, Maine will become one of few states (if not the first) to bond to fund broadband deployment, taking advantage of current historically low interest rates.

Meeting a Need

Tens of thousands of homes and businesses in Maine fall short of even the slowest upload and download speeds defined by the FCC as modern broadband. Those in the northern two-thirds of the 35,000-square-mile state deal with particularly poor conditions, with either no connectivity options or maximum download and upload speeds of 10/1 Megabits per second (Mbps). The ConnectME authority has given out $12 million over the last decade to fund projects, with an emphasis on last-mile connections, but broadband gaps still remain.

Nancy Smith, Executive Director of GrowSmart Maine, told WABI:

We know that access to high speed internet is critical for students to access education, even when they're at home. And for all of us to access medical care through tele-health. Investments in broadband are also critical to growing the economy and creating jobs, particularly in rural areas.

Mainers Weigh In

Westfield Gas+Electric (WG+E) started its broadband division WhipCity Fiber and the buildout of their network five years ago. The project started with only serving Westfield, but WG+E is now contracting with other small towns in Massachusetts to assist in building and potentially operating their own fiber networks.

Today, WG+E is slated to help connect 12,400 households in 20 Massachusetts towns over the next 10 years. In order to do this, WG+E and WhipCity Fiber will receive more than $10 million over the next ten years through the Federal Communication Commission’s Connect America Fund Phase II auction, which awarded $1.5 billion in subsidies to broadband providers to expand rural connectivity across the nation. The 20 towns that are partnering with WG+E to build fiber networks are: Alford, Ashfield, Blandford, Becket, Charlemont, Chesterfield, Colrain, Cummington, Goshen, Heath, Leyden, New Ashford, New Salem, Otis, Plainfield, Rowe, Shutesbury, Washington, Wendell, and Windsor.

Adapting While Expanding

Westfield has been slowly building out its network, which is owned and operated by WG+E, and it is now roughly 75 percent complete. Lisa Stowe, the communications manager at WG+E, said that they temporarily paused new installations in Westfield due to the Covid-19 pandemic. However, she is hopeful that they will begin connecting new customers and resume their buildout of the network this year.

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To construct the WhipCity Fiber network, Westfield issued a $15 million bond. The city must pay down that bond and do routine updates to the network as they continue expanding. Stowe explained that they are well on track to having the network fully constructed within their original six year timeline.

While large Internet service providers routinely face some of the lowest customer satisfaction rates in the country, municipal broadband networks, like FairlawnGig in Fairlawn, Ohio, have set themselves apart by offering superior customer service to residents and businesses.

Case in point: recent subscriber surveys from FairlawnGig revealed that 94% of residential respondents were satisfied with their service from the community-owned network. Businesses in Fairlawn also appreciate the municipal fiber provider. A similar survey given to businesses showed that about 700 jobs — at least — can be directly ascribed to the FairlawnGig network.

“Our customer service revolves around our building a strong and diverse network to our residents and businesses,” Fairlawn Deputy Director of Public Service Ernie Staten said in a press release. “We have the extremely high customer satisfaction scores to prove it.”

Numbers Don’t Lie

FairlawnGig conducted its survey of residential subscribers at the end of April and found an astonishingly high rate of satisfaction among those surveyed. Overall, 94% of respondents said they were satisfied with the service and 77% reported that they were “very satisfied,” which is impressive even with an accuracy range of plus or minus four percentage points. Another three quarters of survey takers said that FairlawnGig’s customer service is “excellent.”

In addition, about half of respondents said that FairlawnGig was “extremely important” in their choice to live or stay in the community. And the survey found that activities like working from home and streaming movies and other entertainment increased after residents started subscribing to FairlawnGig’s Internet access.