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Telecompetitor Talks Awful Municipal Broadband Report

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.

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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.

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Read the full story here.

Cities With Municipal Networks Go Far In #StrongestTown Contest

Update: Traverse City, Michigan, took home the prize as 2017 #StrongestTown. Congrats to Traverse City!

Keeping with the spirit of March Madness, the nonprofit StrongTowns ran the second annual #StrongestTown contest based on the nonprofit’s Strength Test and Principles. Of the 16 communities that participated, almost a third have been featured on MuniNetworks.org for their Internet infrastructure plans: Ellsworth, Maine; Lafayette, Louisiana; Traverse City, Michigan; and Valparaiso, Indiana.

These five communities have battled their way forward against steep competition. Through articles and podcasts on Strong Towns, they tried to showcase how their residents are active in their communities and committed to change at the local level. All five overcame the initial rounds, and Traverse, City, Michigan made it to the final round against the Canadian city of Guelph. The winner will be announced Monday, March 27th on the contest page.

Community Networks Support Vibrant Towns

It comes as no surprise to us that these communities would be in the running for #StrongestTown. Building a community network takes public support and a realistic look at financials. Publicly owned networks encourage job creation, improve healthcare, and connect low-income residents. The towns that made the cut took different approaches to better connectivity. 

Gigabit Community Funds Coming to Lafayette and Eugene

In 2014, Mozilla and the National Science Foundation (NSF) created the Gigabit Community Fund to help local communities test new gigabit technologies. This year, projects in Eugene, Oregon, and Lafayette, Louisiana, will receive awards from the fund. Each community will receive $150,000 $300,000. Organizations that want to apply for the funding with their project ideas need to submit applications by July 14, 2017.

Learn more about the application process and the award at the Gigabit Communities website.

The recent announcement described the reasons for adding these cities to the list of past winners - Chattanooga, Kansas City, and Austin:

Why Eugene and Lafayette? Mozilla Community Gigabit Fund cities are selected based on a range of criteria, including a widely deployed high-speed fiber network; a developing conversation about digital literacy, access, and innovation; a critical mass of community anchor organizations, including arts and educational organizations; an evolving entrepreneurial community; and opportunities to engage K-12 school systems. (emphasis ours)

Check out this video on Mozilla and the Gigabit Community Fund:

Update: After publishing this story, we received the official news release from the city of Eugene and the Technology Association of Oregon, which provided a little more information. Specifcally that grants usually range from $5,000 - $30,000 and that the pilot period is typically 16 weeks. You can read the news release here.

Quick Reflections on Google

I have been a Google Fiber supporter, believing that Google's investments and policy goals would move the United States forward, away from the monopolies of entrenched incumbents. When others claimed that Google was abandoning fiber, I argued that Google had not yet decided... it was arguing internally about the right path. 

But now I think it is pretty clear that Google is done with significant fiber investment, particularly for single family residential homes. I have strong doubts that Google will continue with the Huntsville-type approaches of leasing dark fiber, but I hope that will continue.

Google's decision to pursue other, likely more lucrative investments like AI and autonomous driving may be more profitable, but it is certainly disappointing for those of us working to ensure everyone has high quality Internet access.

It is important to note that companies like US Internet, Ting, and Sonic, among others have establishing strong businesses competing against the biggest telephone and cable companies. Google's exit is not evidence that ISPs cannot do well. It is evidence that Google has other opportunities and that its large scale focus on building its own fiber had too slow of a return for its Silicon Valley expectations.

This brings me to something I wrote 5 years ago, not actually expecting that Google would give up after only 5 years. 

If I were moving south of Minnesota in the near future, it would be to Chattanooga or Lafayette, not Kansas City. Who knows what Google will be doing in 5 years? We know exactly what EPB and LUS will be doing.

Wow. I think Kansas City is definitely better off for having worked with Google to enable that network. But there is no doubt in my mind that local investments are a better bet than hoping some distant company will save your community. I think this article understates Google's impact in KC significantly, but we are once again reminded that there is much more to benefiting from a network than simply laying fiber.

New Resource: Map, List Of Citywide FTTH Munis

It’s no small feat to plan, deploy, and operate a municipal citywide Fiber-to-the-Home (FTTH) network, but communities are doing it. We’ve put together a Citywide Municipal FTTH Networks list and a map, with quick facts at your fingertips. If your community is considering such an investment, this list can offer a starting point on discovering similarly situated locations to study.

The list is divided by state and each state heading offers a description of any barriers that exist and a link to the statute in question. Under each community, we also included relevant links such as to the provider’s website, coverage on MuniNetworks.org, and reports or resources about the network.

We used four basic criteria to put a community on our list and map:

  • The network must cover at least 80% of a city.
  • A local government (city, town, or county) owns the infrastructure.
  • It is a Fiber-to-the-Home network.
  • It is in the United States. 

Share the list far and wide and if you know of a community network that meets our criteria that we missed, please let us know. Contact H. Trostle at htrostle@ilsr.org to suggest additions.

Community Fiber Network Diversifying Economy in Louisiana

Acadiana, the southern region of Louisiana, is seeing a resurgence of industry thanks in large part to it publicly owned fast, affordable, reliable network. Years ago, the city of Lafayette, Louisiana, built the LUS Fiber network to connect homes and business.

Now, LUS Fiber is helping to diversify Acadiana’s economy, which once almost exclusively relied on the oil industry. Fiber networks offer much potential for economic development. 

“The State of Business” in the Silicon Bayou

The October-November issue of the Acadiana Profile at MyNewOrleans.com ran an article on the changing landscape of Acadiana’s businesses. Author Kimberly Singletary provides an overview of three growing industries: technology, manufacturing, and healthcare. All three need access to reliable, high-speed connections.

Singletary spoke with One Acadiana, an economic development organization in Lafayette:

“We’ve had a long history of innovation in IT and software,” says Jason El Koubi, CEO of One Acadiana. “But it's still very much an emerging field.”

Due to what El Koubi describes as “almost a grassroots movement in cultivating IT over the years,” the Acadiana region enjoys a robust offering of internet services resulting in a competitive, cheap and extremely fast LUS Fiber network.

LUS Fiber offers affordable, high-speed connectivity to several software developers that have made Acadiana their new home. The network offers speeds of up to 2 Gigabits (2,000 Megabits per second). In 2014, LUS Fiber attracted three companies, bringing almost 1,000 jobs to the “Silicon Bayou.” Another company, Waitr, an Uber-like food delivery service, is planning to add an operations center to Lafayette, which will bring another 100 jobs to the community.

More Than Tech: Industries Need Connectivity

Haunted Halloween Weekend: Broadband Trick Or Treat

Are you spending the Halloween weekend watching scary movies on Netflix? Researching pagan rituals online? Scouring the web for last minute costume ideas? If you are don't have decent Internet access, even those simple tasks can be downright horrifying.

If you are trapped as a cable monopoly zombie, you understand the difference between Broadband Tricks or Treats. We created this graphic last year to celebrate the spooky differences between community networks and cable monopolies and it's too good to bury in a shallow grave! Here it is again...back from the (un)dead!

Trick or Treat - Subscriber reviews edition!

View a larger version of this graphic here [pdf]. Stay up to date on community networks with our newsletter!

Google Fiber Pauses - But No One Else Should

Google Fiber has finally announced its plans for the future after weeks of dramatic speculation that it will lay off half its workforce and give up on fiber-optics entirely. Google has now confirmed our expectations: they are pausing new Google Fiber cities, continuing to expand within those where they have a presence, and focusing on approaches that will offer a better return on investment in the short term.

Nothing Worth Doing Is Easy

In short, Google has found it more difficult than they anticipated to deploy rapidly and at low cost. And in discussions with various people, we think it can be summed up in this way: building fiber-optic networks is challenging and incumbents have an arsenal of dirty tricks to make it even more so, especially by slowing down access to poles.

That said, Google is not abandoning its efforts to drive better Internet access across the country. In the short term, people living in modern apartment buildings and condos will be the greatest beneficiary as Google takes the Webpass model and expands it to more cities. But those that hoped (or feared) Google would rapidly build Fiber-to-the-Home (FTTH) across the country are likely disappointed (or slightly relieved, if they happen to be big incumbent providers). 

This is a good moment to talk about the lessons learned from Google Fiber and what we think communities should be thinking about. 

Let's start by noting something we have often said: Google Fiber and its larger "access" approach have been incredibly beneficial for everyone except the big monopolists. Its investments led to far more media coverage of Internet access issues and made local leaders better understand what would be possible after we dismantle the cable broadband monopoly. 

Benoit Felton, a sharp international telecommunications analyst wrote a very good summary of Google Fiber titled Salvaging Google Fiber's Achievements. Some of my thoughts below overlap his - but his piece touches on matters I won’t address, so please check out his analysis.

I want to focus on a few key points.

BT Brings Free Wi-Fi To New Burlington Transit Center

Burlington Telecom is teaming with Green Mountain Transit to provide free high-speed Wi-Fi to commuters and GMT employees at the new transit center, reports Vermont Business magazine. The bus transit center opened on Oct. 13.

The magazine noted:

“A reliable high speed Wi-Fi connection on the Downtown Transit Center platform will improve the customer experience, allowing passengers to use their wait time more effectively as they work, connect with friends, or download an e-book to enjoy on the ride.”  

Burlington Telecom general manager Stephen Barraclough told Vermont Business:

 “The opening of the new Downtown Transit Center is a much needed development for the many who commute to and from Burlington daily, and provides an exciting opportunity to highlight Burlington’s powerful gigabit infrastructure as an accelerator for economic, educational and community benefit.” 

Burlington Telecom joins a growing list of U.S. communities that are making free high-speed Internet connectivity available at public transit stations and airports. 

Free Wi-Fi At The City Gateway

In April 2015, we noted that LUS Fiber began sharing its municipal Gigabit network with travelers at the Lafayette Regional Airport in Louisiana. Free Wi-Fi is available at the airport supported by LUS Fiber, allowing guests to check email, post to social media, and browse the Internet.

Community Connections - Terry Huval from Lafayette, Louisiana

"We Speak French, Eat Crawfish, and Have the Fastest Broadband in the World." 

Terry Huval's fascination with fiber started with the fiber on his fiddle strings, so it's pretty appropriate that he regailed Christopher with his skills during this Community Connections episode. 

In the previous episode you heard from former Mayor, Joey Durel about overcoming controversy and Lafayette's LUS Fiber.

In this episode, Huval emphasizes why ownership is so important for cities to control their fiber infrastructure. He also touches on the other benefits of the public fiber network: faster response for outages, better connectivity for public safety and traffic control, and more than $13 million in cost savings for residents and businesses!

We hope you enjoy!