Lake County could not reach agreement on a permanent contract with National Public Broadband, its consultant firm for nearly two years. The two sides battled for nearly two months and couldn’t solve issues based on bonus payments and the ability for the county to fire NPB without cause and without penalty. The negotiations had bogged down work on the actual project, Commissioner Paul Bergman said, and the board wanted a fresh start.

As Minnesota's rural county-wide FTTH projects move forward, we have the opportunity to learn more about them in upcoming events.  Thanks to Blandin's broadband blog for covering these issues!

On February 10, Cook County is welcoming Dan Olsen from WindomNet to discuss their experiences with a community-owned fiber network. You can listen to a previous interview on the North Shore with Dan Olsen.  In the interview, Dan Olsen mentions that a number of residents use WindomNet to work remotely, commuting only once a week to their jobs in South Dakota.  

For the rest of us, mostly located in the metro area of Minneapolis and Saint Paul, we can learn about the projects in Cook, Lake, and Sibley Counties at a Telecommuniations and Information Society Policy Forum at the HHH School of Public Affairs at the University of Minnesota.

In a situation similar to the Frontier letters to Sibley we published last week, the cable company Mediacom has sent letters to Silver Bay and Two Harbors in Lake County to scare them into abandoning the rural county-wide FTTH network that they are building with federal broadband stimulus aid.

Interestingly, rather than sticking to the normal fear, uncertainty, and doubt (FUD) campaign, Mediacom apparently based its threats on a draft previous version of the joint powers ordinance rather than the language actually passed by the resolutionsincluded in the current JPA. Whoops.  [See Update below]

Mediacom, perhaps you should focus on improving your networks rather than stifling potential competition.  Please send us copies of letters your community network has received from incumbent providers.

Without further ado, here is the letter [download pdf] sent to Silver Bay and Two Harbors on December 21, 2010 by Tom Larsen, VP of Legal and Public Affairs for Mediacom:

Re: Joint Powers Agreement with Lake

County Dear Mayor Johnson:

Mediacom prides itself in being one of America's leading providers of telecommunications services to small and medium sized communities. As you may be aware, Mediacom offers a highly competitive suite of high-speed Internet, cable television and phone services to homes and businesses throughout Silver Bay (the "City").

It has come to our attention that the City passed a resolution on November 15, 2010 approving a Joint Powers Agreement with Lake County (the "JPA"). Given the significant private capital that Mediacom has invested in order to make advanced telecommunications services available throughout the City, we were extremely surprised to learn that your resolution approving the the JPA includes the following finding in Section 4(e):

Like the debate over whether the meetings being held to draw up the rollout plans for the county should be public or private, NPB needs to better apply the rules of working within the expectations of open government. We demand transparency and a full accounting of tax dollars. It’s fair to wonder, as some board members did last week, just what NPB would withhold from the board if things don’t go swimmingly with the Lake County plan.

Green Tech Grid asks, "Are Munis and Co-Ops Leading Smart Grid?" And the rest of the article says, "YES." This should come as no surprise for readers of this site. The dynamics, and even players, in smart-grid are very similar to those of community networks. There are essentially two approaches to smart-grid: that of the investor-owned utilities that see smart-grid investments as an opportunity to raise rates, and that of munis and coops who see an opportunity to cut costs and better serve their ratepayers.

In Leesburg's case, they knew that just an advanced meter deployment would cut their cost. "We told our commission we're not going to increase our rates because we're rolling this out," said Paul Kalv, Electric Director of Leesburg Power. "And we know we'll be reducing the customer charge to share those savings." So far the city has saved about $1 million. Kalv talks a lot about his customers. When one guy complained about his smart meter, Kalv personally went over to his house to check it out. It is that sort of on-the-ground interaction that is simply not possible for the CEO of investor-owned utilities, like Florida Power & Light Company, where Kalv worked for 22 years.

I raise this issue to note that the article discusses Leesburg and Lake County, Florida, without mentioning their investments in broadband. But when Leesburg applied for the Google Gigabit project, they noted their fiber-optic assets.

I just spoke with Danna MacKenzie of Cook County and Gary Fields of National Public Broadband (working with Lake County) to find out just how excited they are about yesterday's announcement of broadband stimulus awards. Both Lake and County (separate projects) have been funded to build fiber-to-the-home networks to everyone on the power grid in the region. They are pretty excited. In a few years, these North Shore Communities will likely have better broadband options than the metro region of Minneapolis and Saint Paul -- a far cry from the beginning of this year when a single fiber cut stranded the whole north shore. Bob Kelleher at Minnesota Public Radio covered the awards:

Combined, they will connect 37,000 residents, 1,000 businesses and 98 institutions such as hospitals and schools.

Cook County actually has a double whammy - they already stood to benefit from the North East Service Cooperative, which is building high capacity fiber-optic lines through the North Shore to offer middle-mile backhaul and connect local government facilities and schools. As of yesterday, they will also get a fiber-to-the-home network from the Arrowhead Electric Cooperative. Cook, currently served in part by Qwest, has little access to true broadband -- some 37% have access to anemic DSL connections and the rest are stuck with dial-up. Details of the award from Kelleher at MPR:

Joe Buttweiler, who directs membership services with the Lutsen-based Arrowhead Electric Cooperative, said 70 percent of the federal award is a grant and the remainder a loan. He said the cooperative will add another $600,000 for capital.

Back in April, Blandin's Broadband blog published the short summary of the Arrowhead project:

Bank ATM's failed. No one could use their credit cards. But as bad as that was for business, the 12-hour-long outage knocked out what the federal government calls a "vital part of our nation's emergency response system." The outage killed 911 emergency service in Cook County, Chief Deputy Leif Lunde said. ... With no 911 service, county officials turned to volunteer firefighters to field emergency calls from normally un-staffed fire halls. Fire truck radios relayed the information back to Grand Marais.

A northeastern Minnesota county is doing just that and may have the answer, at least for those in the "second Minnesota." Lake County hopes to blaze a trail to a faster Internet with private businesses paying most of the cost. County officials want to lay fiber optic cable, capable of carrying high-speed signals, to every home and business with electricity. If it happens, Lake County could become a model not only for Minnesota but the country by offering its rural citizens the same service as their big-city cousins receive.

The NOFA explicitly calls 768/200 Kbps broadband “sufficient access to broadband service to facilitate rural economic development,” but how many jobs will this kind of broadband really attract to a depressed area? How many new services can service providers sell over such networks? Will the networks support public needs for distance education or health care? And how long will it be before the equipment has to be replaced? In the words of a rural telco manager I spoke with recently, “You want to put money into something long-term if you’re going to start building networks. Don’t build something you’ll have to throw away in two or three years.”

Lake County is a rural area in northeastern Minnesota. Its planned network requires 800 miles of fiber to more than 7,300 homes and 500 businesses – every premises in the area that has electricity or telephone service now. It’s the first project of National Public Broadband (www.nationalpublicbroadband.org), a nonprofit helping communities develop and operate municipal fiber networks. NPB’s CEO is Tim Nulty, director of the ECFiber project awaiting funding in Vermont.