It took a while, but the State of North Carolina finally decided to take its turn at the throat of the FCC. Attorneys filed a Petition for Review in the 4th Circuit Court of Appeals similar to the one filed by the State of Tennessee in March. The Petition is available for download below.

Our official comment:

"Attorney General Cooper must not realize the irony of using state taxpayer dollars to ensure less money is invested in rural broadband, but we certainly do," says Christopher Mitchell with the Institute for Local Self-Reliance. "State leaders should stand up for their citizens' interests and demand good broadband for them, rather than fighting alongside paid lobbyists to take away those opportunities."

Like Tennessee, North Carolina makes an attempt to stop the FCC's well-considered Opinion and Order by arguing that the FCC overstepped its authority in violation of the Consitution. The FCC addressed this argument in its Opinion and Order along with a myriad of other potential arguments. For detailed coverage of the FCC's well-considered decision, we provided information on highlights of the decision back in March.

According to WRAL, Wilson is taking the new development in stride:

The City of Wilson was not surprised that North Carolina sued.

"We are aware of the suit," said Will Aycock, who manages the Greenlight network. "We knew that this would be an ongoing process."

The Attorney general's has not contacted Wilson about the suit, he added.

The State of Tennessee has filed the first appeal to the recent FCC Opinion and Order [PDF] reducing state barriers to municipal broadband. Governor Bill Haslam appears determined to keep his constituents in the Internet slow lane.

The state filed the short petition on March 20th arguing [view the petition on Scribd.]:

The State of Tennessee, as a sovereign and a party to the proceeding below, is aggrieved and seeks relief on the grounds that the Order: (1) is contrary to the United States Constitution; (2) is in excess of the Commission’s authority; (3) is arbitrary, capricious, and an abuse of discretion within the meaning of the Administrative Procedure Act; and (4) is otherwise contrary to law.

Haslam expressed his intention to explore the possibility of filing the appeal earlier this month reported the Times Free Press. In February, the Governor and Tennessee Attorney General Herbert Slatery signed a letter from a number of state officials to the FCC urging them not to change state law. U.S. Rep from Tennessee Marsha Blackburn and her Senate counterpart Thom Tillis introduced legislation to fight the Order just days after the FCC decision.

State Senator Janice Bowling, a long time advocate for local choice, and Rep. Kevin Brooks have taken the opposite perspective, introducing state legislation to remove restrictions to achieve the same result as the FCC Order with no federal intervention. Their bill has been publicly supported by the state Farm Bureau and local municipalities such as the City of Bristol.

For the facts on all things UTOPIA, we turn to Jesse Harris at FreeUTOPIA.org. In his latest post, he provides an excellent bullet list of the key factors in Macquarie's Milestone 2 proposal. An excerpt From his post:

The final cost per address is estimated at $22.60 per month. Macquarie estimates that re-working the deal to account for five cities bowing out trimmed the cost by $8.57 per month.

The revenue split is much more generous than I expected, allowing the cities to keep 75% of wholesale revenue after the first $2M per year. It’s expected to completely cover the debt service by 2021 with just a 24% take rate for premium services.

The basic level service has also been improved. Instead of 3M/3M service being included at no extra cost, it’s been bumped to 5M/5M. This matches Google Fiber speeds on the free tier. The data cap stays put at 20GB per month.

Almost all of the network revenues are being driven by Veracity, XMission, and SumoFiber. Other ISPs are very small by comparison.

The majority of currently connected users are in opt-out cities. This only reinforced that the votes there were “we got ours” selfishness.

Jesse has also managed to obtain a draft copy of the Milestone Two Report and has it posted for your review at his blog.

Recently, the network settled a long running dispute with the Rural Utility Service (RUS), reported the Standard Examiner. UTOPIA was awarded a $10 million settlement in a lawsuit filed in September 2011.

A November Salt Lake Tribune article reported that the RUS encouraged UTOPIA to seek federal loans in 2004 but took 19 months to approve the first payment, generating unanticipated expenses. Later, the agency withdrew promised funding with no formal reason. 

Our Community Broadband Map documents over 400 communities where publicly owned infrastructure serves residents, business, or government facilities. We rarely hear of publicly owned systems sold to private providers, but it does happen once in a blue moon.

Accelplus, the fiber optic FTTH network deployed by Crawfordsville Electric Light & Power (CEL&P) in Indiana was sold earlier this year to private provider Metronet.

According to a July Journal Review article, the transition for customers began this summer with completion expected by the end of 2014. Metronet invested approximately $2 million in upgrades. Metronet will also offer voice services via the network; Accelplus offered only Internet and video.

In the past, we have found that networks that offer triple-play can attract more customers, increasing revenues. In states where munis cannot offer triple-play or administrative requirements are so onerous they discourage it, municipalities that would like to deploy fiber networks sometimes decide to abandon their vision due to the added risk. 

A November 2013 Journal Review article reported that the network, launched in 2005, faced an expensive lawsuit commenced by US Bank. Apparently the network could not keep up with the repayment schedule for Certificates of Participation, backed by network revenue, that financed the investment.

Metronet purchased Accelplus and its assets for $5.2 million. The City also provided some economic development incentives. When all is said and done, investors are settling for a total of $5.6 million and the City avoids a $19.6 million lawsuit.

A February Journal Review article reported:

Metronet will receive a 10-year, $24,000 per year lease from CEL&P on property currently used by Accelplus. Metronet can purchase that property for $1 after the lease expires. Accelplus manager John Douglas has segregated those areas and provided AutoCAD drawings to Metronet.

This is the first of a three part series, in which we examine the current state of the UTOPIA network, how it got there, and the choices it faces going forward.

At the end of a month of public meetings, hearings, and city council votes, just over half of the cities that make up UTOPIA have chosen to take the next step in their negotiations with the Macquarie Group. The massive Australian investment bank has put forward an offer to become a partner in the troubled network in exchange for a $300 million capital infusion to finish the long-stalled FTTH buildout.

Of the 11 member cities that have debt obligations for the network, six (comprising about 60% of all 163,000 addresses in the UTOPIA area) have voted to proceed to “Milestone 2,” which means digging into details and starting serious negotiations on the terms of a potential public-private partnership. Macquarie outlined their opening proposal in their Milestone 1 report in April.

Macquarie has about $145 billion in assets globally, and is no stranger to large scale infrastructure projects. Their Infrastructure and Real Assets division has stakes in Mexican real estate, Taiwanese broadband networks, Kenyan wind power, and a New Jersey toll bridge, to name just a few. For their UTOPIA investment, they would be working with Alcatel Lucent and Fujitsu, highly capable international IT companies. So there’s some serious corporate firepower across the negotiating table from the UTOPIA cities - and in this case, that’s not actually a bad thing.

Burlington has seen ups and downs over the past few years but a new chapter is about to begin. The non-profit U.S. Ignite and the City are partnering to create BTV Ignite. The initiative will develop a gigabit community infrastructure and the applications that use it. With help from U.S. Ignite, Burlington will join the growing list of gigabit communities.

An advisory committee is fueling interest in the project. Mayor Miro Weinberger describes the effort as a way to develop a tech friendly local economy and increase access for individuals and institutions. A recent Government Technology article quoted the Mayor:

“We believe we’re well on our way to being the first city in the country that provides gigabit access to every student from kindergarten through college and even graduate school here in Burlington,” Weinberger said. 

The City and its partner have developed five critical steps based on consultation with Kansas City, Chattanooga, and other gigabit communities:

1.    Develop Structure to Foster Applications-Driven Energy

Much like the KC Digital Drive in Kansas City, [Executive Director of U.S. Ignite Bill] Wallace said the mayor’s advisory committee must play a key role in helping drive development.

2.    Create the Most Robust Infrastructure

Wallace said this will be particularly necessary for schools, businesses and libraries.

3.    Embrace Technology Through Community Events and Hackathons

By setting up a continuous stream of events like community hackathons, digital sandboxes and a hacker homes network similar to one developed in Kansas City, the city will be able to focus more on app development for specific capabilities, like cybersecurity or the development of complex systems.

4.    Share Practices With Other Cities to Deploy Networks

This could also mean sharing practices on how to generate applications.

5.    Tap into Federal Resources

Wallace said looking to federally funded resources like the National Science Foundation will be important when building out the infrastructure and developing applications.