Ever since the towns of Mooresville and Davidson purchased and began fixing the failed Adelphia franchise in their part of North Carolina, private sector purists have tried to portray their efforts as a disaster. MI-Connection has had some serious difficulties amid higher than expected costs, but just reported a promising increase in revenues.

At their monthly board meeting at Davidson’s Town Hall on September 22, Transition Manager David Auger said that, from July through September, the system had increased its voice customers by 48 percent over the first quarter last year, its video customers by 296 percent and its data customers by 2,248 percent. 83 days of the gains, said Auger at the time, were actual, and 9 were projected, since September was not yet over. The final customer numbers, which the system released today, showed that the last few days of September growth activity exceeded projections: voice customers grew by 60 percent over the first quarter last year, video customers by 319 percent, and data customers by 2257 percent.

This network was targeted time and time again by Time Warner Cable and its allies in pushing the anti-competitive bill that has effectively stopped any investment in next-generation networks in the state by killing local authority to make broadband investments. They regularly blamed the network's problems on the local governments owning it while providing no context -- the network was in terrible shape because its prior private-sector owner saw little reason to invest in it. The network is now far superior because the local governments care more about encouraging economic development and creating local jobs than producing a quick profit for out-of-state shareholders. As MI-Connection continues to correct its problems, Davidson's government is remarkably open and transparent. You can read just about all the documents relating to the network, finances, and history here.

If you the take a look at our community broadband map, you'll see that Texas has only one citywide wired network owned by the public: Greenville. The story behind it is the same story we hear from just about every other community - but they actually spelled it out on their history page.

In 1999, Greenville, Texas' economic development leaders were unable to attract certain businesses and on the verge of losing existing companies due to a lack of high speed Internet. In response, Mayor Sue Ann Harting asked SBC for a commitment to deploy DSL. That request was denied. The city's cable franchise, Time Warner, also declined to commit to cable modem Internet deployment. Greenville found itself in a situation similar to one that many towns had faced years ago when railroads changed transportation. If the railroad was not routed through a town, that town just might die. What would happen to Greenville if the information superhighway did not come through the city?

Incumbent cable and telephone companies, their lobbyists, and associated "think tanks" like to claim that communities are somehow "duped" into building publicly owned networks. The truth is that just about every community wants to avoid the hassle of building a network but incumbents refuse to invest sufficiently to keep the community competitive for economic development and a high quality of life. They build networks when backed into a corner, not because they want to. Fortunately, all that hassle almost always pays off with far more benefits than problems over the long term as communities transition from depending on some distant corporation to solving their own problems locally. In fact, the results are often like that of Greenville:

Greenville citizens were not willing to take that chance. They took destiny into their own hands by amending the city charter to allow their revenue-only supported, municipally-owned electric system to build a hybrid fiber coaxial system to make high speed Internet available to everyone.

One of the key differences between community owned networks and those driven by profit is customer service. Community-driven providers spend more and create more jobs in the community to ensure subscribers' needs are met. The massive private companies instead choose to outsource the jobs to call centers (sometimes in the U.S., sometimes outside) in order to cut costs (and jobs - see the report from the Media and Democracy Coalition). We've seen a few examples of the big carrier approach in this arena - as when Cablevision billed apartment residents $500 after a fire for the DVR that was consumed in the blaze... stay classy, Cablevision. Another difference between community networks and the big carriers is that big carriers see little reason to upgrade their anemic networks to ensure communities remain competitive in the digital age. As Free Press has long documented [pdf] big companies like AT&T have been investing less in recent years as the U.S. has continued falling in international broadband rankings. Up here in Minnesota, Qwest has invested in FTTN - what they call fiber-to-the-node. We call it Fiber-to-the-Nowhere. For those who happen to live very close to the node, they get slightly faster DSL speeds that are still vastly asymmetrical. Meanwhile, Qwest has branded this modest improvement for some as "fiber-optic fast" and "heavy duty (HD)" Internet, misleading customers into thinking they are actually going to get faster speeds than Comcast's DOCSIS 3. Much as I hate to praise the middling DOCSIS 3 upgrade, it certainly offers a better experience than any real results we have seen with Qwest. But as we carefully documented in this report, community networks offer more for less. Two friends recently moved to Qwest. One, J, was convinced by a Qwest salesperson that Qwest would be much faster so he signed up for a 20Mbps down package.

Spanish Fork, a well-regarded community broadband network, is now offering triple-play services on its hfc network. Previously, the town was offering broadband and television but recently added telephone after feeling the time was right. From the article:

John Bowcut, director of Information Systems for Spanish Fork, said 15 percent of homes signed up when told telephone service was available over the cable. The network only used door hangers to advertise at first because it intended to have a slow rollout. Then the service was promoted in the city newsletter. SFCN's phone rollout was slow for a reason. Small neighborhoods were notified one at a time, which allowed the network to handle the load. Bowcut said they didn't want to open sign-ups citywide and then have to tell people their connection date was three months out. He said the most people had to wait this way was 10 days. Initially about 1,500 homes signed up for phone service, out of 5,534 homes in Spanish Fork.

The new telephone service runs an economical $14.95 with a variety of features. 75% of the town takes at least one service from the network, perhaps because of the great customer service:

Perrins was a beta tester for the system. He thought going through that process was awesome. They fixed every problem quickly and fine-tuned the network. "It was fun because the employees were so excited and eager to find and fix the problems."

Prior to the telephone rollout, only some 60% of the community took a service from the network, as explained in this article

About 60 percent of Spanish Fork residents already subscribe to SFCN's cable TV and high-speed Internet. The customer appeal of the city-run communications utility is that Spanish Fork provides both the infrastructure and the service -- a practice that was actually outlawed by the Utah Legislature in 2004, though Spanish Fork was grandfathered in. This means SFCN can cut out any middle-man service provider, which amounts to about $2 million in savings each year, Mayor Wayne Andersen said. "I think it was a sad day when the state Legislature put the kibosh on that sort of thing," Andersen said.

Back in 1998, the Braintree Electric Light Department (Massachusetts) built an HFC network for remote monitoring of their electrical services. In 1999, they extended the network to become the first broadband provider in town.

With about 1,500 Internet customers solely from word-of-mouth advertising, BELD staff looked to expand the offerings from its HFC network. In 2000, a cable television plan and $3.5 million bond issue were approved at Town meeting. State-of-the-art digital cable service was launched before the end of that year, and by the end of 2001, BELD was serving 4,000 cable and nearly 3,000 Internet customers.

As a measure of their success, citizens just voted BELD Broadband the top ISP of the area for the 3rd year in a row ...

The town also voted the department Best Cable TV Provider (for the second year) and Best Phone Service in 2010, casting votes via BestOfSurveys.com with Market Surveys of America, an independent survey company and member of the Better Business Bureau.

You can follow BELD Broadband on twitter.

Sounds like the Scottsboro Electric Power Board is doing well. They offer fiber-optic services to businesses in addition to the cable services they offer to the general public.

Our Cable employees have also had a busy summer. We are experiencing a good bit of growth in business phone line installations and fiber optic data installations. Our phone partner Knology (based in West Point, Georgia) is doing a great job for us. Knology provides the telephone switching and long distance connections so we can concentrate on customer connections and customer service.

Knology seems to have partnered with a number of muni networks to offer telecom services.

The American Cable Association has profiled Tacoma's Click! network. Click! is an HFC network owned by the city, via the public power utility. Tacoma Power only offers one retail service: cable television. Voice and broadband data services are provided by independent services providers who use the network on an open access basis. The network has been quite successful. Some 25,000 households subscribe and it has kept competitor rates (Comcast, for instance) far lower than nearby Seattle, for instance. I previously noted the economic development victories attributable to the network.

"If you're a cable TV customer or an Internet customer of any company in our footprint, you pay between 35% and 49% less than if you are not in our footprint," said Diane R. Lachel, Click! Network's Government and Community Relations Manager. "That's really significant. That's what the Telecom Act of 1996 was all about. That's the kind of competition Congress intended."

Other communities aspiring for successful networks should study the approach of Marketing and Business Operations Manager Mitch Robinson. Click! has embraced local content - something every community should do to differentiate itself from absentee-owned incumbents.

One Robinson innovation was the localization of video-on-demand (VOD). The inspiration for this product was the lack of Tacoma community news from the TV stations based in Seattle, about 30 miles northeast of Click!'s headquarters. Tacoma tends to make the local TV news mostly when the news is bad. In response, Click! decided to build relationships with a multitude of local nonprofits to create a steady inventory of VOD segments exclusively available to Click! viewers. One VOD service, called Safe Streets, shows how to energize a neighborhood by curbing gang activity, setting up block watches, cleaning up derelict properties, and scrubbing away unsightly graffiti. Click! also has exclusive VOD rights with The Grand Cinema, a local independent movie theater that also sponsors local film festivals. Through the Click!

In January 2001, or about 1 million years ago in tech time, Site Selection Online published "Wired Cities: Working-Class Communities Build Next Frontier of High-Speed Connectivity". I found it years ago when reading up on the Click! network in Tacoma, Washington. I recently stumbled across it again and thought it might be interesting to evaluate its claims after a decade (or close to it) had passed. The lead of the article discusses Tacoma its relationship to Seattle. Tacoma had extremely poor connectivity from the private sector and its public power utility decided to build an HFC network to extend broadband to everyone in the community. Tacoma's Mayor notes that over 100 companies poured in after the community solved its own broadband problems - generating some 700 jobs in 18 months. Fast forward to today, and this paragraph:

As a result, the next frontier of information companies isn't being confined to the Silicon Valleys of the world. It's taking root where you might least expect it: in places like Tacoma, LaGrange, Ga., and Blacksburg, Va.. And in most cases, it's government taking the lead, beating business to the punch by stringing fiber and building networks in working-class communities that most bottom-line corporations would otherwise ignore.

The principle of self-reliance is timeless. And we see the same idea in news articles today: local governments bringing broadband to areas the private sector cannot. In 2010, the fastest and more affordable broadband networks in the US are not in Silicon Valley -- they are in Lafayette, Chattanooga, Wilson, Utah, and other places where the community decided to prioritize big broadband. Because of the competition in Tacoma, prices for telecom have remained lower than in nearby Seattle - as I quoted a Tacoma resident previously:

I have Comcast in Tacoma and all I know is since there is competition down here Comcast is about half the cost as it is in Seattle. They give you a rate good for a year. When your year is up you call up and just say Click! and bam back down you go.

Cedar Falls, Iowa, is the latest of a number of publicly owned cable networks that are upgrading to FTTH. Cedar Falls has been planning this for some time, squirreling away net income over the years as it ran surpluses to help afford the costly upgrade. A story in the WCF Courier notes it will cost $17 million and is expected to be completed in 2012. The bonds used to finance the project will be repaid over 10 years. When I last spoke to folks in Cedar Falls, they had massive take rates - bolstered by local service that Mediacom could not compete with. Cedar Falls Utilities (CFU) had already been offering fiber services to local businesses and will be expanding that to the entire area. According to an article in the Cedar Falls Times, the utility had already been installing FTTH capability into greenfield developments, so they have certainly planned for this transition. Motivation for the upgrade seems to be the faster broadband speeds and more capacity for HD channels. The Utility also noted that needed bandwidth has been doubling every year -- a likely reason they opted for FTTH rather than a cheaper DOCSIS3 upgrade that would not offer the same scalability as FTTH (and DOCSIS3 is much more constrained in upstream capacity). The Cedar Falls Times article explains the benefits of FTTH over HFC:

An HFC plant uses thousands of active devices (such as amplifiers) to keep data flowing between the customer and the service provider. Any one of these devices can fail, interrupting service. In contrast, the all-fiber plant will be a passive optical network, with no active components between the distribution center and the end user. Fewer “moving parts” means fewer points of failure and a more reliable system.

CFU puts community needs first:

“We know from experience that economic growth comes to cities that keep their infrastructure up to date, whether it’s roads, water, electricity or broadband,” said Krieg [CFU General Manager]. “CFU is going to do what it takes to make sure Cedar Falls has leading-edge communications technology, and maintain economical rates for internet and video services.”

The network was launched in 1996, one of the first communities with citywide broadband access.