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Seattle, Gigabit Squared, the Challenge of Private Sector Cable Competition
White Space Pilot Project Brings Basic Internet From Library to Residents … For Free!
The Gigabit Libraries Network (GLN) has orchestrated a pilot project to optimize white space technology for connectivity in and near community libraries and schools. We discussed this approach on our most recent podcast with Don Means, coordinator of the project.
White spaces wireless, sometimes referred to as "Super Wi-Fi" or "TVWS," can provide limited access in rural areas with limited funds and limited connectivity options. The technology is still in the development stage but creative people working in community libraries are finding new ways to use it.
GLN's goal is to bring next generation connectivity to all 16,000 libraries in the U.S. The organization grew out the 2007 "Fiber to the Library" Campaign from the Community TeleStructure Initiative. The initiative is a collaboration of institutions of higher education, corporations serving the higher education technology market, and related entities. GLN advances the idea that anchor networks, like those at the library, are cost effective ways to serve populations and to create middle mile access.
"White spaces" are the unlicensed low-frequency spectrum that was reserved for television signals prior to digitization of television. (If you are REALLY old, like me, you remember the "UHF" and "VHF" dials on the ol' black-and-white.) As we transitioned to digital TV, the spectrum was abandoned. White spaces differ from traditional point-to-point wireless spectrum because they do not require a line of sight. Buildings, trees, or other obstacles do not stop the signals. Thurman, New York, and New Hanover County in North Carolina use white space technology for limited Internet access in their areas.
Don Means on Libraries and White Spaces - Community Broadband Bits Episode 79
SpringNet Continues Driving Jobs and Revenue for Local Community
A year has passed since we covered SpringNet in Springfield, Missouri, and its remarkable impact on local businesses and economic development. We recently spoke with SpringNet Director, Todd Murren, and Network Architecture Manager, Todd Christell, to get an update on how the network is progressing.
Demand for SpringNet’s high-speed data services continues to grow steadily. Financial statements for City Utilities of Springfield show the network generated $16.4-million in operating revenue last year against costs of $13.2-million. Better yet, revenues have increased around 3% per year while cost increases are closer to 0.5%. The end result is close to $3 million in annual net income for SpringNet. And all of this comes from a network that only serves commercial and public sector clients because Missouri state law restricts municipal network provision to only “Internet service,” meaning SpringNet cannot offer triple-play packages to compete with incumbent providers.
One of the highlights of SpringNet’s economic development success has been the attraction and retention of travel giant Expedia. After a large national provider failed to deliver on negotiations with the company, SpringNet stepped in to make sure Expedia brought its call center to Springfield. That effort has paid off handsomely for SpringNet and the local community. Expedia now employs close to 900 in the area after announcing in July that it was hiring another 100 employees in Springfield.
Up next for SpringNet is an effort to leverage its fiber infrastructure to create even more jobs. Believing that future job growth will revolve around the advancements enabled by gigabit networks, SpringNet is working with the Mid-America Technology Alliance (MATA) to host a hackathon with partners in Kansas City to explore what is possible between gigabit cities.
Google Buys Provo Community-Owned Network
Provo started building their own municipal network in 2004 because they decided that providing access to high speed connectivity was important to their community’s future. In 2011, they started looking for a partner that could acquire their network and deliver an affordable service for Provoans. We’re committed to keeping their vision alive, and, if the deal is approved and the acquisition closes, we’d offer our Free Internet service (5 Mbps speeds) to every home along the existing Provo network, for a $30 activation fee and no monthly charge for at least seven years. We would also offer Google Fiber Gigabit Internet—up to 100x faster Internet than today’s average broadband speeds—and the option for Google Fiber TV service with hundreds of your favorite channels. We’d also provide free Gigabit Internet service to 25 local public institutions like schools, hospitals and libraries.
Fiberhoods New Destination for Start-Up Businesses
As more and more businesses consider broadband a critical utility, property demand reflects the need for high-speed Internet. In Kansas City, property designated as a future Fiberhood is already in high demand. Phillip Dampier reports in Stop the Cap! that tech businesses are relocating to get the jump on the gigabit fiber service, inching property values up in targeted areas.
And it is not commercial property in demand. Companies want access to the future gigabit network and are buying in residential areas, which are the first slated to recieve the fiber service. From the article:
Google is not officially selling fiber service to businesses just yet. Answer? Buy residential property in the area and move workers who could deliver increased productivity with faster Internet speeds.
That was the answer for Local Ruckus LLC, which is opening its new headquarters in a 2,500-square foot home in the first neighborhood scheduled to receive Google Fiber service.
“It just makes life easier,” CEO Adam Arredondo told the Kansas City Star.
Tech start-ups have been the target for the community since the Google Fiber intitiative. More and more are finding their way into the future fiber hoods and to the Kansas City region. The city is also using special initiatives to bring high tech companies and their jobs to Missouri.
Communities that are building their own FTTH networks should take a look at Google's approach. They neighborhood by neighborhood contests helped to make sure everyone knew about the network, increasing excitement. Marketing is tremendously important to securing enough subscribers to pay the debts of building the network.
Also from the article:
KCMO mayor Sly James last month unveiled Launch KC — an effort to attract technology companies to Kansas City, particularly start-ups.
James announced five companies and Union Station were prepared to offer free or “very affordable” office space in the city’s Crossroads district, the West Bottoms, and downtown. Office space is even available at the Kansas City International Airport.
Google Fiber Spurs Digital Divide Discussions
“I’m concerned that the digital divide” — the gap between electronic haves and have-nots — “will be exacerbated by the fact that you’ll have extremely fast Internet in some neighborhoods while people in neighborhoods with fewer resources will be left even further behind,” said Christopher Barnickel, an assistant director at the Kansas City, Kan., Public Library.
Christopher Barnickel, speaking with Scott Canon of the Kansas City Star, echoed the growing concerns of many in Kansas City. The Google fiber initiative, meant to offer the fastest broadband, may leave many behind. Google is connecting neighborhoods that met a minimum threshold for service, creating concern that low-income neighborhoods will not meet that threshold. Of the 202 possible neighborhoods, 22 will not be connected.
We discussed in a previous post how Google is in the unique position of being able to offer their gigabit service for such a low price. But one of the reasons they make it work is by building only in areas where people are ready to sign up today. Their agreement with the City is very clear that they do not have to serve everyone.
Google's Kansas City preregistration just ended. But Canon's words from 2 weeks ago remain important:
Two weeks remain for dozens of neighborhoods to sign up enough potential customers to qualify for Google’s service before a Sept. 9 deadline. But many neighborhoods — chiefly the least prosperous pockets of the metro area — remain far behind the pace needed to hit the Google-established thresholds of customer penetration.
That means many of the free connections Google agreed to make to public buildings, library branches and community centers won’t happen.
At that time, the map was fairly divided among income lines.
Google Creates Competition in Kansas City, TWC Hires 81 People
The company, which currently employs about 900 locally, wants to fill customer service, finance, sales and other positions.These are the jobs that result from competition - which does not exist when the providers a limited to a complacent duopoly comprised of a single cable company and a single telephone company. This is one of the way that community networks create jobs. Community Networks create traditional jobs to offer their own services (and a multiplier effect by using local accounting, local marketing, and other services). But they also create more revenue for local papers (advertising) and job opportunities with rival companies that suddenly need to fight for subscribers. On a different track, Light Reading says it has a copy of Google's franchise with the city and notes that Google is under no obligation to serve everyone in the city. However, Karl Bode rightly notes that it was the state legislature in Kansas, flush with AT&T campaign contributions, that revoked the authority of local governments to require cable providers to serve everyone. Presently, 14 "fiberhoods" in Kansas and 49 in Missouri have met the registration goals and will be among the first served. Google will build to any fiberhood that meets the minimum threshold of interest. One cannot blame Google then for only building where they will profit. In fact, this is what one would expect any rational profit-maximizing company to do. It is a failure of governance to require that everyone have access to an essential infrastructure. And we know what causes these failures of governance - systematic legalized bribery in our campaign finance system. Light Reading does note that the franchise is far more generous to Google than overbuilders can typically negotiate. This is a result of Google offering such a unique product. Local leaders decided to effectively subsidize Google's network with favorable terms in the right-of-way, including making inspections as quick and painless as possible.
The Economics of the Google Gigabit
Lesson 1: Google built its own network. It isn't leasing connections or services from big telecommunications companies. Building your own network gives you more control -- both of technology and pricing. Lesson 2: Google uses fiber-optics. These connections are reliable and have the highest capacity of any communications medium. The homes in Kansas City are connected via fiber whereas Time Warner Cable, CenturyLink, and others continue to rely on last-generation technologies because they are delaying investment in modern technology to boost their profits.Others have already followed these lessons but are not able to offer their gig for such a low prices. To understand why, let's start with some basics. I'm hypothetically starting Anytown Fiber Net in my neighborhood and I want to offer a gig.