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Minnesota Local Governments Advance Super Fast Internet Networks

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Local governments in Minnesota have been at the forefront of expanding fast, affordable, and reliable Internet access - often in some of the most challenging areas of the state. ILSR has just released a policy brief to explore some of these approaches: Minnesota Local Governments Advance Super Fast Internet Networks. The full report is available here. The brief examines five communities that have taken different approaches to expanding access, from working with a trusted local partner to creating a new cooperative to building community-wide FTTH networks. Lac qui Parle County has worked with Farmers Mutual Telephone cooperative to bring fiber networks to those who had been stuck on dial-up. Finding itself in a similar situation with no reliable partner, Sibley County is creating a new coop to work with. Scott County built a fiber ring to connect community anchor institutsion to dramatically expand access to high capacity networks and lower telecommunications budgets. That network has helped to lure several major employers to the area by leasing fiber to them. Windom and Monticello have built FTTH networks in extremely challenging conditions. Though Windom is far smaller than most have believed is feasible to build such a network, it has thrived and is now connecting many of the small towns surrounding it. It was essential in retaining jobs in the community that would have been lost without it and has attracted new jobs to the region. Monticello is a younger network and has remarkably benefited the community even as it has struggled financially due to dirty tricks from the telephone and cable companies. The policy brief makes some policy recommendations while focusing on some local solutions to difficult problems in ensuring all Minnesotans have fast, affordable, and reliable Internet access.

Being a Gig City: It's All About the Upload

This is the second in a series of posts examining a premier Gigabit Community - Wilson, North Carolina. The first post is available here. It's all about the Upload. If you are the owner of a small engineering business with dense blueprints to send to your European clients, or a specialized country doctor who depends on the quick transmission of x-rays, a digital film effects company, a photographer or a local broadcaster, your ability to upload your dense information to your colleagues, clients, and residents means business. For Gig City, Wilson in North Carolina, offering gigabit upload speeds to its community is essential to ensure local businesses thrive. According to a recent Speed.Net report, upload speeds in the United States compared to the rest of the world are dismal. If you live in Hong Kong (60 Mbps), Singapore (47Mbps) and South Korea (44Mbps), you are in the drivers' seat with the fastest upload speeds in a world where time wasted means money. If you are in the U.S., as of February 2014, you're in the slow lane. We rank 41st at 6.69 Mbps. But not if you live in Wilson. With access to Greenlight's gigabit residential upload speeds, living in Wilson means being competitive and working easily with the world's top achievers. The owners of Wilson-based Exodus FX know this. Digital artists Brad Kalinoski and Tinatsu Wallace found Wilson in their nearly impossible search for small-town affordability but world-class broadband infrastructure. Two years ago, they started a small growing boutique that caters to the visual effects needs of global film and television production companies. When their broadband rates in West Virginia skyrocketed despite the local broadband infrastructure seriously underperforming, the company's survival depended on relocating. Exodus FX logo "We had to choose an area that could offer a low cost of doing business, while delivering an infrastructure better than that of other states and countries," wrote Mr. Kalinoski, a three-time, award nominee for his special effects contributions to Black Swan and LOST, the Final Season.

An Increasing Call for Community Owned Networks

While Comcast focuses on increasing its market power rather than improving services in the communities it monopolizes, no one should be surprised that we are seeing a surge in interest for building community owned networks. We've heard from many people who want to learn how they can start - more than we can always respond to, unfortunately. We are working on a resource to answer many of those questions, but it always boils down to 2 things: building a supportive network of people and getting informed. Get the word out - especially to local business leaders and anyone else who may be supportive. There are many potential business models and financing opportunities, but some will work better than others in each community. That said, there are some basics that every community should be immediately considering. The first is building a fiber network to connect anchor institutions such as schools, libraries, first responders, municipal facilities, and the like (see our Fact Sheet on savings from such networks). These networks should be constructed in such a way as to enable future expansions to local businesses, residents, and generally everything in the community or even beyond for rural areas. That means choosing the backbone routes carefully and ensuring that as much fiber is available as possible. Using conduit with channels and always leave at least one channel free to pull a future bundle (replacing a smaller count bundle that can then be removed to continue having a free channel). Another smart move is to begin getting conduit and fiber in the ground as part of other capital projects, like street rebuilds, water main replacement, and the like. We will discuss how Santa Monica did this in an upcoming case study. In the meantime, there is no better resource than CTC Technology & Energy's recent report, Gigabit Cities: Technical Strategies for Facilitating Public or Private Broadband Construction in your Community. We have additional resources organized in two places: on MuniNetworks.org and on ILSR.org.

Processes for a Gigabit Community: Community Broadband Bits Episode 87

More communities are today considering how they can improve Internet access in their community than at any other time. Having a gigabit is quickly becoming the standard - not because we all need 1,000 Mbps but because we know that everything we want to do is possible on a gigabit connection. Video games aren't going to interfere with Netflix streaming or someone working from home. In this week's Community Broadband Bits podcast, Joanne Hovis joins me to talk about a recent paper stuffed with valuable information for communities seeking opportunities for better networks, whether publicly or privately owned. Joanne is the President of CTC Technology and Energy, which has just released Gigabit Communities: Technical Strategies for Facilitating Public or Private Broadband Constructions in your Community. The paper was financially supported by Google. We discuss the nuts and bolts of important strategies, including Dig Once type approaches and various ways local governments can use their processes to lower the future costs of building a fiber network. I don't know of a better paper on this subject - so I strongly encourage people to both listen to the interview and read the paper. Read the transcript from our conversation here. We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address. This show is 25 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed. Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to Valley Lodge for the music, licensed using Creative Commons. The song is "Sweet Elizabeth."

Westminster's Fiber Project Drawing Business from New York City to Maryland

Westminster's FTTP pilot project continues to blossom. We recently heard from Dr. Robert Wack, one of the local leaders of the project.

Engineering, the first phase, is almost completed with bids for construction soon to be solicited. 

Even before any fiber is in the ground, Westminster is feeling the positive economic development effects from the network. According to Dr. Wack, Carlisle Etcetera, a women's fashion clothing  company, will be relocating from New York City to Westminster. Carlisle will bring its distribution and data centers because it will have access to the next generation fiber network.

The local Industrial Development Authority is an official supporter of the project and will contribute local funds for capital costs.

Community Fiber Is Not Just About the Fiber

The focus on community networks tends to linger on the technology - FTTH is much faster and more reliable than cable or DSL services. But community fiber is only partially about the superior technology, as evidenced by a recent story over at Broadband Reports - "Verizon has been Quietly Increasing FiOS Fees." We don't see this behavior in Chattanooga, which has gone over four years without raising the fees for Internet access to telephone services. Community networks rarely increase their fees because the cost of delivering Internet and telephone services declines over time. Television prices go up, though less rapidly for community networks than big cable firms because the big firms demand a bigger margin. Further, we see that Verizon has been sneaking its price increases into things like the router rental fee, as Comcast and most providers have long done. At one point, renting the Comcast modem cost me $2, then $5, now $7, and in some places $9 I hear. Per month. I bought my own now - took less than a year to payback. But my bill has gone up even more since then, so I didn't gain much. Now Verizon is even charging for battery backup units:
In addition to price hikes, promotion cuts, the new gateway rental fee and the activation fee, Verizon also recently started charging users for the backup batteries in their ONT units, first charging users for backup battery replacement, then charging users to get any backup battery in the unit to begin with.
Anytime you hear someone arguing that munis should only be able to build their own networks where the private sector absolutely refuses, recall that community owned networks are not simply a consolation prize, they are often superior. Better customer service, lower rates over the long term, and more likely to invest in upgrades as needed - there is no good reason to condition this investment on the refusal of some other distant company to provide an inferior alternative.

Being a Gig City: Incubating Small Businesses

This is the first in a series of posts examining a premier Gigabit Community - Wilson, North Carolina. According to the U.S. Small Business Administration, 85% of all jobs originate from companies with fewer than 30 employees, and 87% of businesses which started through business incubators have succeeded after five years. So Wilson, North Carolina, focused its "Greenlight" gigabit beam on its local business incubator, the Upper Coastal Plan Business Development Center. "Greenlight is driven by three guiding principles," said Will Aycock, the network's General Manager. "Supporting the economic health of the community, improving the delivery of city services, and enhancing the quality of life for the citizens of Wilson." Providing access to symmetrical gigabit speeds has allowed the community's small business incubator to take its services to the next level, to give budding entrepreneurs access to the future today and in a uniquely affordable way. According to Greg Goddard, Executive Director of the Upper Coastal Plain Council of Government, access to gigabit speeds has meant "Taking our incubation to the next level." Historically their business incubator has attracted "low tech" entrepreneurs: consultants, counselors, state associations, childcare and healthcare providers, people who need work space after normal office hours, even Chic Fil-A administrators, for employee training. The incubator provides a full suite of services including a receptionist, copy and fax machines, phones, 24 hour secure entry, kitchen, meeting rooms, training classes, access to experts, parking, and now, symmetrical gigabit speeds, all for an affordable price. "An 8' by 8' cubicle with those full-suite services leases at $275/month," he said. The goal is to stimulate budding internet-age businesses. Free Wi-Fi in Wilson And it has, even for young entrepreneurs elsewhere in the state. For a tech entrepreneur like Dan Holt from Wake Forest, renting space at this Wilson-based incubator lets him be part of the future, and to experience the possible which is impossible at his home in Wake Forest only 30 miles away. Dan is a self-described techie for a local Raleigh defense subcontractor but he likes to be known as founder of the Wake Forest Fiber Optic Initiative.

Policy Brief: Building Community Broadband Access

In partnership with the Center for Popular Democracy, we have created a new policy brief: Building Community Broadband Access. We offer examples of communities that have acted to improve access by using smart strategies that facilitate community owned networks.

This fact sheet provides information to legislators, advocates, or concerned citizens who want to educate others about the benefits of publicly owned networks. This is the latest in our growing collection of convenient, compact, and instructive fact sheets. 

The Center for Popular Democracy works with a long list of local, state, and national groups to exercise grass-roots democracy. 

Download the Policy Brief [PDF].

Sun Prairie Ponders Fiber Network Investment in Wisconsin

The Sun Prairie City Council met on January 14th to discuss a possible investment in a municipal fiber network. Thank you to local resident Jonathan Kleinow for alerting us to developments in the south central Wisconsin town.

The Star published an article about the meeting in which The Motive Group presented information to the Committee of the Whole. According to the story, the consulting firm has been working with Sun Prairie Utilities for a year to find ways to improve local connectivity and spur economic development with fiber. The community is considering the possibilities of a triple-play FTTH network for the areas 30,000 residents.

Sun Prairie Utilities solicited responses to a community survey. They received 700 responses with 88% in favor of a fiber investment. 

From the article:

The recommended plan put for[th] by The Motive Group has a total cost of near $27 million, with $21 million of that as year-one capital expenditures to serve roughly 13,550 homes and businesses in the city.

Budgeted in the initial year's expense total is $11 million for aerial and underground construction and equipment.

Once the fiber system is operational and available for customers, [The Motive Group's Beth] Ringley said projections show $9.97 million in annual operating revenue by year 20 of the system to go along with expenses of $1.26 million.

By year 20, total assets are projected to be at $27.16 million, with total cash at $12.56 million.

Councilman Jon Freund commented that he was opposed to the idea at first but that he now believes Sun Prairie Utilities and the City could partner to distinguish the community. From the article:

“Technology has become a greater and greater need for both businesses and residents,” Freund continued. “This is an opportunity for us to basically differentiate Sun Prairie from all the other communities in Dane County.”

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He added that fiber installation would “put Sun Prairie on the leading edge” for economic development and local and long-distance education opportunities.

High Speed in the Blue Grass State: Russellville's Gig

The Logan Journal recently reported that the Russellville Electric Plant Board (EPB) now offers gigabit service to local businesses. The article notes that Net Index, an online tool to measure download and upload speeds, recognizes EPB as the first Gig city in Kentucky. To learn more about the community and its network, we talked with Robert White, General Manager of EPB.

The community of 7,000 is the county seat of south central's Logan County. Russellville is located in the center of several other larger communities: Nashville, Bowling Green, Hopkinsville, and Clarksville, Tennessee. Manufacturing has been a large part of the local economy for generations, but community leaders recognize the vulnerability of a narrow economic base. In order to encourage a versatile economy, Russellville invested in its telecommunications utility.

The community wants to encourage small business while simultaneously providing manufacturers the connectivity they need. Leadership sees the ability to remain competitive directly tied to their network. In addition to the economic development opportunities a fiber network can provide, communities like Russellville rely on electricity revenue from large consumers. Retaining the large electric consumers that also provide jobs in the community is a must.

Russellville's electric utility created a strong advantage when it was time to venture into telecommunications. EPB had already established a strong relationship with its Russellville customers, says White, and locals felt they could trust their municipal electric provider.