Now that a judge has legally approved it, Ammon is forging ahead with an innovative approach to financing Internet infrastructure in Idaho.

On May 19th, the city council unanimously voted to create a Local Improvement District (LID). Ammon’s decision has secured a way to finance its open access Fiber-to-the-Home (FTTH) network.

Local Improvement Districts: You're In or You're Out

LIDs have been used for fiber-optic infrastructure in other places, such as New Hampshire and Poulsbo, Washington, but the approach is still not widespread. In Ammon, the city council's action creates a district from five subdivisions, where residents can “opt in” or “opt out” of participation in the FTTH network. The district includes 376 individual properties, and 188 of those property owners have expressed a desire to "opt in" to the benefits, and costs, of the network. Those who have chosen to "opt out" do not use the network, nor do they pay for deployment.

LIDs are specifically designed to take advantage of any boost to local property value -- and studies have linked FTTH with increased local property values. We’ve previously summarized the most common ways communities finance networks, but LIDs are a little different.

In western Massachusetts, 44 small towns continue the push for high-speed, high-quality Internet access. WiredWest (a cooperative of these town’s municipal light plants) has been ramping up the pressure on the state. They need funding to build a regional network, but a state agency has been reluctant to distribute money.

To update everyone on the ever-changing situation, WiredWest has launched a revamped website, focusing on the latest news and most relevant information. Bookmark WiredWest.net to keep informed.

WiredWest and MBI? It’s A Long Story

WiredWest began in 2010 as folks gathered together to bring better connectivity to their unserved and underserved communities.  They wanted a regional Fiber-to-the-Home (FTTH) network that would bring future-proof fiber optic technology into their homes. After years of working on business plans and creating a governance structure to represent all the towns, WiredWest hit a major roadblock erected by a state agency.

The Massachusetts Broadband Institute (MBI) is in charge of distributing state funding to project that will improve Internet access in the state. Previously, the agency had built a middle-mile network (which connects community anchor institutes and could serve as a backbone for FTTH networks). When WiredWest asked for state funding to help develop its fiber infrastructure, MBI stalled the process – to the point that even the governor’s administration got involved. The agency has made some decisions about which projects it will help fund, but its choices have been criticized.

This week in The Nation, Peter Moskowitz highlighted some of the nation's fastest municipal networks, bringing these Gig cities to a new level of national awareness. From Sandy, Oregon, to Wilson, North Carolina, and Chattanooga, Moskowitz touted these networks as a main reason the cities have been able to attract entrepreneurs and businesses.

The focus of the article was on Chattanooga's EPB Fiber network, how it propelled the city into the 21st century, and continues to spark innovation. Chattanooga's EPB now boasts a subscribership of 82,000 -- testimony to fast, affordable, reliable connectivity and good customer service.

“Really, these last two years you’ve seen it pick up steam,” said Christopher Mitchell, the director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance (ILSR). “It’s just going to keep on spreading.”

Six years ago, Chattanooga was the only city offering publicly owned 1-gigabit Internet. Today, over 50 communities do, according to ILSR, and there are over 450 communities in the United States offering some form of publically owned Internet. Many municipal networks are in small towns and rural areas where private high-speed Internet is hard to come by. But several dozen are in cities like Chattanooga, where there are other, private options for internet that tend to be much more expensive and slower than what governments have proven they can provide.

While the Internet network is one of many things Chattanooga is doing right, the option to obtain Gigabit per second (Gbps) service for only $70 per month is a big bonus. Other communities see Chattanooga's success and are starting to replicate their own affordable Fiber-to-the-Home (FTTH) Gig plans.

Read full article

Sandpoint, Idaho, located in the state’s panhandle, is likely to host Ting’s Internet service over publicly owned Fiber-to-the-Home (FTTH) infrastructure. All that remains is for the service provider to determine that the demand exists in the anticipated service area of approximately 9,700 people. In addition to residents and businesses in Sandpoint, properties in nearby Dover, Ponderay, and Kootenai are anticipated potential subscribers.

Sandpoint, Idaho

Approximately 7,500 people live in the city, which is the Bonner County Seat. The community is popular as a ski resort town and is located on Lake Pend Oreille. In addition to tourism, the manufacturing, aerospace, software, and healthcare industries are important employers in Sandpoint. It covers approximately 4.8 square miles and, five years ago, was named “most Beautiful Small Town” by Rand McNally and USA Today.

Seeking Assistance Moving Forward

The city has recently issued a Request for Proposals (RFP) to find a firm to propose a plan to make the best use of their existing dark fiber network. According to the RFP, Sandpoint is looking for consultants to help them engage in conversations with stakeholders and providers, determine the city’s assets, use their assets for maximum economic development, and a variety of other tasks.

Sandpoint has had an existing conduit system in place for some time but, according to the RFP, has not been “proofed” and may not be suitable for larger cables. The city also has an underground fiber backbone and is in the process of installing more fiber-optic cable.

Bonner County also owns conduit within Sandpoint that can be accessed as part of the town’s project. The RFP describes more conduit in and around the city and Sandpoint’s preliminary plans to use it to improve local connectivity.

Important dates:

After our article earlier this month on US Internet’s problems obtaining permission to install conduit under Minneapolis Park Board boulevard property, several other articles appeared in local media.

TV station KARE 11 ran a piece on the issue and interviewed Julie Stenberg, who observed, "Technically it's park land, but people are not playing Frisbee, they're not picnicking here.” (Watch the video below.)

The Star Tribune also ran an article noting that people like Julie, who live adjacent to park owned boulevards, may never have the opportunity to take Fiber-to-the-Home (FTTH) service from the local provider.  If US Internet wants to obtain a permit to bury conduit along the parkway in order to get to Julie's house - the only option available - they will have to shell out $27,000 in fees. People around the corner from Julie are already getting FTTH service from US Internet.

Permit Denied

According to the Strib, Commissioners denied a permit for boulevard placement and for placement under Minnehaha Creek in South Minneapolis because it lacked the detail they required. The Park Bard is concerned about damage to trees during both conduit placement and any maintenance:

“We’d directional drill, and we’d be 12 to 14 feet under the creek bed,” [US Internet’s Vice President Travis] Carter said. “You will not see anything when we’re done. It’s just a pipe deep underground that nobody will see.”

US Internet has no access to Comcast and CenturyLink poles, so an underground network is its only option. Alleys are too tight to safely use the boring and maintenance equipment, especially in the winter, but the Park Board is not convinced, “It’s really important for USI to demonstrate that there’s no alternative,” [Assistant Park Superintendent Michael Schroeder] said.

Caught Behind A Boulevard And A Creek

In August 2013, we reported on Lakeland, Florida’s dark fiber network that serves local schools, government facilities, and local businesses. Over the past year or so, community leaders have discussed whether or not to expand the use of Lakeland’s fiber resources.

A 2015 feasibility study suggested several other ways to use Lakeland’s existing 330 miles of fiber infrastructure to enhance connectivity for economic development and residential access. As the city examines its finances and its future in the coming months, city leaders are considering six avenues to meet the community’s needs. The options, some recommended by consultants, vary in type and investment and the City Commission will begin discussing the possibilities as they meet in the upcoming months.

Leaders Consider The Next Move

Lakeland is examining public policies that will encourage better connectivity, such as dig-once, permitting changes, and right-of-way regulations. With smart policies in place, Lakeland can lay the groundwork so they can build off progress made today.

In 2013, Polk Vision, a group of organizations, businesses, government, and individuals, along with the Central Florida Regional Planning Council developed the Polk County Broadband Plan. Another option is using the Plan as a guidepost and aligning Lakeland’s plan to support the goals set in the Polk County Plan. Connecting the schools to a larger network would be part of that plan.

Lakeland, like many other communities wants to give providers operating in the community today the opportunity to work with them to improve services. Another option the city will pursue is reaching out to providers in Lakeland and engaging in discussions to upgrade or expand services to better meet the needs of the community. (We haven't seen much success when communities pursue large incumbents, but smaller local providers are sometimes more willing to work with communities.)

Cedar Falls may be the Iowa city famous for its Fiber-to-the-Home (FTTH) network, but that won’t stop Muscatine. This small city of approximately 29,000 people is about to upgrade its aging network. For a little over a year, the municipal utility, Muscatine Power and Water (MP&W), has planned for the move to FTTH with funding from an interdepartmental loan. Now, FTTH is coming to Muscatine's MachLink Internet access service.

MP&W expects to break ground this year on this $8.7 million FTTH project and to finish building the network in 2017. Fiber will offer speeds much faster than those available on the existing hybrid fiber-coax (HFC) network. In anticipation, MP&W is increasing speeds for subcribers without raising rates.

More than a Year in the Making

The local newspaper, the Muscatine Journal, has closely followed the story. In late November 2014, MP&W announced the planned FTTH upgrade. MP&W is taking a slow and steady approach and planning to complete the upgrade in 2017. The latest Muscatine Journal article from this March emphasized how the large infrastructure project has many "interlocking" pieces that must fit together to make the project successful.

As we reported when MP&W announced the upgrade in 2014, a FTTH network will achieve immediate goals and help achieve a number of benefits. MP&W wants to improve residential services, reduce maintenance costs, and increase network reliability. Upgrading to FTTH will also contribute to long-term goals, such as encouraging economic development. Fiber is a future-proof technology, adapting to the increasing need for bandwidth from households, businesses, and institutions. MachLink will offer speeds of up to a Gigabit (1,000 Megabits) per second.

Outperforming Expectations

Highlands is a small community of less than 1,000 residents located in the Nantahala National Forest in the Appalachian Mountains. Along the western tip of the state, Highlands faces the same problem as many other rural communities - poor connectivity. In order to bring high-quality Internet access to residents and businesses, Highlands has implemented a plan to deploy city-owned Internet network infrastructure.

A Connected Escape Up In The Mountains

Highland entertains a large number of summer tourists who flock to its high altitude to escape summer heat and humidity. Summer visitors can fill the city’s six square miles and surrounding area with up to 20,000 people. The city operates a municipal electric utility along with water, sewer, and garbage pick up. 

To round off the list of offered services and bring better connectivity to the community, Highlands created the Altitude Community Broadband. In January, the Town Board authorized to borrow $40,000 from its General Fund and $210,000 from its Electric Enterprise Fund to deploy and launch the new service. The loan will be repaid with revenue from the new service.

The town has long-term plans to offer both Fiber-to-the-Home (FTTH) and fixed wireless service to residents and businesses in the downtown area. Fiber is already available in limited areas within Highlands proper; pricing is available on a case-by-case basis. The landscape is rugged, so residents outside of the city may not be able to transition to FTTH, reported a December HighlandsInfo Newspaper, but the fixed wireless access is still an affordable and workable option in a place considered a poor investment by large providers.

Residential options for Altitude Wireless Internet Access are:

Two new Requests for Information (RFI) were recently released in Palo Alto, California, and Pikeville, Kentucky. 

Pikeville, Kentucky

Pikeville is open to both public ownership and Gigabit service via privately owned infrastructure. This community of approximately 7,000 residents wants Fiber-to-the-Premises (FTTP) for businesses, community anchor institutions, municipal facilities, and residents. The regional Appalachian Mountain community, with many jobs lost due to the shrinking coal industry, is turning to connectivity as a way to spur economic development.

Pikeville’s RFI describes how service from existing providers is expensive and "sporadic." This RFI calls for a partner that will help the community develop an open access, affordable, financially sustainable network. In drafting the RFI, Pikeville’s officials made sure to note that low-income residents will not be left behind; bringing this asset to disadvantaged residents is a priority.

The city is the county seat of Pike County and home to a number of colleges as well as several large healthcare facilities. City, county, and federal government facilities are also located in Pikeville and need better connectivity. In 2015, the city obtained a $5 million grant for technology-based training and degree programs for residents in the area. A $1 million grant supplied funding for a Broadband Technology Center in Pikeville. Now the city needs fast, affordable, reliable Internet network infrastructure to complement the Center and to move the local workforce toward more information based industries.

Important Dates:

• Letter of Intent Due: May 23, 2016
• Questions Due: May 25, 2016
• Final RFI Submissions Due: June 3, 2016

The city’s website has more information and details.

Palo Alto, California

Palo Alto is a Silicon Valley city of 67,000 residents; daytime workers coming into the community swell the population to approximately 125,000. Incumbents include Comcast and AT&T who have intimated they might be interested in bringing fiber to the city, but have yet to act. Community leaders are exploring all options with this RFI.