Lac qui Parle County in western Minnesota has some of the best connectivity in the state. As part of the county’s efforts to get the word out about opportunities in the region, their new Facebook video highlights access to great Internet access and hopes to draw more citizens to the region.

"Come for the Jobs. Stay for the Lifestyle"

Pam Ellison, Economic Development Director for the County, describes the network that is available across the county to businesses and residents. High-quality Internet access is a way to retain businesses, attract new endeavors, and entice people to fill new positions.

Back in 2009, the county began working with Farmers Mutual Telephone Cooperative to find a way to improve Internet access. Through their collaboration, the two entities received a 2010 American Recovery and Reinvestment Act (ARRA) to deploy Fiber-to-the-Home (FTTH) connectivity and replace antiquated dial-up. At the time, about 52 percent of premises were still using their telephones to connect to the Internet.

Lac qui Parle had approached incumbent providers, but none were interested in upgrading in the sparsely populated region. Farmers Mutual Telephone Cooperative had deployed in other communities in western Minnesota and had the experience required in such a rural area. The project’s $9.6 million ARRA combined grant and loan allowed the project to be completed by the summer of 2014. Read more details about the network and the story in Lac qui Parle County in our 2014 report, All Hands on Deck: Minnesota Local Government Models for Expanding Fiber Internet Access.

Check out Lac qui Parle County’s video:

As Newport Utilities (NU) in Tennessee moves forward with a plan to offer Fiber-to-the-Home (FTTH) connectivity, they are holding public informational meetings. At a recent meeting, locals received the plan positively, reinforcing that idea that NU is on the right track.

The network will be funded by a $3.5 million interdepartmental loan from the utility’s electric system in addition to a USDA loan. The first phase of the build out will connect just under 6,800 residential and approximately 1,200 business premises. It will also bring electric substations, the city of Newport, emergency services, and local schools on to the new infrastructure. The second phase will continue to connect remaining NU’s service area.

Why Are THEY Here Anyway?

In recent weeks, anti-muni groups from Knoxville and other areas have targeted the project, raising questions among the community; NU officials wanted to address the misinformation directly. Chair of the board Roland Dykes said:

“There has been alot of publicity, negative and positive in the community and we wanted to do this to make sure everybody understood what we are trying to do, and what broadband will mean for our community.” 

WNPC reported that “virtually all of the attendees were positive about the plan, because many areas of Cocke County are without Internet service.” WNPC also noted that the only unfavorable opinion was from an attendee who refused to answer when asked if he was backed by the cable industry. That individual doesn’t live in Cocke County.

Raising Speeds, Holding Down Rates...A Muni Tradition

Sandpoint, Idaho’s fiber-optic infrastructure is ready to lease to Internet Service Providers (ISPs) interested in serving the north Idaho town. A regional provider recently announced that it will take advantage of the community’s fiber to expand its network by leasing dark fiber from the city to serve local commercial subscribers.

Big Plans Begin To Unfold

The city installed fiber during road project construction over a five-year period. About a year ago, Sandpoint released a Request for Proposals (RFP) to help the community of 9,700 people make strategic use of its dark fiber network. In addition to leasing dark fiber to providers, the network will serve municipal needs such as public safety and city offices. In February, the City Council established rates for dark fiber leasing and maintenance.

Things have been somewhat quiet until Intermax Networks announced that it has entered into an agreement with the city to lease excess capacity on Sandpoint’s network and will use the new infrastructure to offer connectivity to local commercial subscribers.

President Max Kennedy said in an official statement:

"We’ve provided fiber services to commercial businesses in Sandpoint for years, but today we are proud to be the first private partner with the City of Sandpoint to expand our network by licensing space on the city’s new fiber infrastructure.

…

Sandpoint has been an integral part of Intermax since the company was founded in Sandpoint in 2001. This year we are going to be dramatically expanding our service capacity in Sandpoint, and we’re pleased to be working with the city on this great project."

Intermax serves commercial sites throughout northern Idaho with fiber and connects to peer networks in Seattle and Portland. The company also provides a variety of services to residential customers and anchor institutions in Kootenai, Bonner, Boundary, and Spokane Counties.

Don't Forget Mr. And Mrs. Sandpoint

Ammon’s fiber optic utility is opening up competition for residents and businesses in the Idaho community of about 15,000 people. Their software defined network (SDN) allows users on the network to increase efficiencies and explore all sorts of creative visions that require high-quality connectivity.

Innovation Just Keeps On Keepin' On

Now, Ammon is partnering with one of the providers on its infrastructure to launch the Ammon Tech Hub & Research Infrastructure Virtual Ecosystem (THRIVE). The project is available at no cost to researchers and developers and supports: 

1. Research requiring cloud functionality, high bandwidth, low latency network connectivity and a ‘living lab.’ 

2. Developers working on next generation networking services, products or Internet of Things (IoT) hardware in need of cloud functionality, high bandwidth, low latency network connectivity and a community of willing Beta testers. 

THRIVE is designed to allow Ammon premises that are connected to the Fiber-to-the-Home (FTTH) network participate in projects so locals can contribute to research and development. In its press release, the city described research on aging and “smart” smoke detectors in its press release. The project will allow researchers and developer from all over the world to access Ammon’s network for collaborative projects.

Read the press release here.

For more on Ammon’s ground-breaking approach, check out the video we produced with Next Century Cities:

June will be an exciting month for people living in Brownton, Buffalo Lake, Fairfax, and Stewart in Minnesota. RS Fiber Cooperative will begin construction so those premises can connect to the Fiber-to-the-Home (FTTH) network now serving six other communities in the central Minnesota region. This stage of the buildout should bring another 500 subscribers on to the network by the end of the year; the network already serves 1,100 premises.

Bringing The Last Towns Into The Fold

According to general manager Toby Brummer:

“As construction of the network continues, we expect our customer numbers to continue to grow. Once we have the final four towns connected to the network, construction can begin on Phase Two of the project which will involve bringing gigabit fiber service to the township members of the RS Fiber Cooperative.”

Customers who take FTTH service now can sign up for voice, video, and Internet access up to 1 Gigabit per second (1,000 Mbps). Addresses that are outside the fiber connection service area have been able to obtain service from the cooperative via its fixed wireless RS Air service.

A Story Of Peaks And Valleys On The Prairie

The RS Fiber Cooperative story began in Sibley and Renville Counties as a regional municipal effort but when Sibley County pulled out, the project had to restructure their plan and design a new strategy. Rather than leave the rural farms behind, the participants decided to form a broadband cooperative to serve as many premises as possible.

Local farms - some of which had no Internet access at all - needed high-quality Internet access in order to operate in the modern agricultural economy. National providers had decided that the area was too sparsely populated to justify investment, so the locals decided they needed to act.

For the second week in row, our staff has felt compelled to address a misleading report about municipal networks. In order to correct the errors and incorrect assumptions in yet another anti-muni publication, we’ve worked with Next Century Cities to publish Correcting Community Fiber Fallacies: Yoo Discredits U Penn, Not Municipal Networks.

Skewed Data = Skewed Results

Professor Christopher S. Yoo and Timothy Pfenninger from the Center for Technology, Innovation and Competition (CTIC) at the University of Pennsylvania Law School recently released "Municipal Fiber in the United States: An Empirical Assessment of Financial Performance." The report attempts to analyze the financial future of several citywide Fiber-to-the-Home (FTTH) municipal networks in the U.S. by applying a Net Present Value (NPV) calculation approach. They applied their method to some well-known networks, including Chattanooga's EPB Fiber Optics; Greenlight in Wilson, North Carolina; and Lafayette, Louisiana's LUS Fiber. Unfortunately, their initial data was flawed and incomplete, which yielded a report fraught with credibility issues.

So Many Problems 

In addition to compromising data validity, the authors of the study didn’t consider the wider context of municipal networks, which goes beyond the purpose of NPV, which is determining the promise of a financial investment.

Some of the more expansive problems with this report (from our Executive Summary):

Hudson Oaks, Texas, will be deploying infrastructure this summer in order to bring high-quality connectivity to businesses and residents. At a recent city council meeting, community leaders authorized the project to allow the town of about 1,700 people to be the first to offer gigabit connectivity in Parker County.

Working With A Local Provider

The city will own the infrastructure and recently entered into a partnership with local Internet Service Provider (ISP) NextLink to offer service via the fiber-optic network. NextLink is headquartered in Weatherford, about five miles from Hudson Oaks. Fort Worth is about 25 miles due east of Hudson Oaks.

According to the Weatherford Democrat, properties within city limits will be served by the new fiber service that will be funded with public investment. On the city’s Facebook page, residents asked questions and city administrator Patrick Lawler addressed them:

“The city of Hudson Oaks cannot by state law spend funds outside the city limits unless expressly given the authority such as we have with water. Fiber does not qualify for this exclusion. NextLink, however, may expand the service at their discretion. In order to prepare for that possibility we have placed additional fiber strands for future expansion.”

Earlier this month, the city authorized the issuance and sale of $1.54 million combination tax and revenue certificate of obligation to help fund the project.

Prices for Internet access should run around $50 - 60 per month for 50 Mbps and $150 per month for gigabit connectivity. Construction on the network should start this July.

Telecompetitor - May 25, 2017

Municipal broadband networks do not have a strong financial track record, according to an analysis conducted by the University of Pennsylvania’s Center for Technology, Innovation and Competition. The municipal broadband financial analysis, which looked at 20 municipal fiber projects, found that only nine were cash-flow positive and that of those, seven would need more than 60 years to break even.

...

An Opposing View

Municipal network advocate Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, pointed to several flaws in the Penn Law municipal broadband financial analysis.

He noted, for example that a substantial portion of the 20 networks studied were “early in the process and very small.” He also argued that the 2010-2014 study period may have biased the results, as that period included a recession and subscribership for some of the networks has increased substantially since 2014. He noted, for example, that EPB’s broadband network in Chattanooga had about 50,000 to 55,000 subscribers in 2014 but has now hit the 90,000 mark.

The Penn Law authors’ approach was “not the proper way to measure these networks,” said Mitchell in a phone call with Telecompetitor. The analysis “doesn’t take into account jobs created or the impact on the municipal budget,” he said.

He argued, for example, that a municipality that previously paid $1 million annually for connectivity might instead pay itself $500,000 for connectivity on the municipal network.

...

Read the full story here.

Highlands, North Carolina, deployed a Fiber-to-the-Home (FTTH) infrastructure and fixed wireless complement to serve the community. The small rural community has been operating the municipal network in the Appalachians since late 2015, but is now considering passing the mantle to a private partner. They recently released a Request for Information (RFI) and responses are due June 9th.

High In The Appalachians

Tourism is one of the town’s staple economies, as it’s known for its natural surroundings atop the Nantahala National Forest in the mountains. While less than 1,000 people live in the town all year, summer tourists swell the population to around 20,000. There are several country clubs nearby that cater to the affluent second-home owners in Highlands and there are at least 500 homes that are valued at $1 million or more.

The FTTH network does not serve the entire community. Local leaders want the network available to the entire community, in part to keep second home owners in Highlands for extended periods of time. With better connectivity, many could work from home. The community also operates a municipal electric utility that owns 2,600 utility poles and 110 miles of line, most of it aerial. Interestingly, the Highlands Electric Utility serves over 3,000 accounts, some in the suburban Atlanta areas.

Highlands issued the RFI to search out  provider that would be interested in expanding the FTTH network and acquiring more customers for the network as a whole. They still want to own the infrastructure, but hope to attract a provider willing to lease the existing network and add to it.

Read the rest of the RFI.

Responses are due Friday, June 30th.