After years of consideration and planning, Waterloo, Iowa is finally moving quickly forward with its plan to build a citywide municipal fiber network. Once complete, the network aims to provide the city’s 67,695 residents with an affordable, fiber-based alternative to local monopolized broadband options that have long left regional locals frustrated and disappointed.  

Waterloo expects that it will cost somewhere around $115 million to build the necessary fiber backbone and connect all Waterloo residents and businesses to the fledgling network. City officials expect the first customers to go live sometime later this year at up to gigabit speeds, though it will take roughly three years for the entire network to be built.

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Much like the rest of the country, Waterloo leaders and residents received a crash course in the importance of affordable broadband during the Covid crisis, when the country’s spotty, sluggish, and expensive broadband networks were on full display due to a massive rise in telecommuting and home education.

Voters Declare GO Time on Muni Broadband

Fueled by frustration, Waterloo voters in September overwhelmingly approved the city issuing general obligation bonds to fund the start of construction for a city-wide municipal fiber network.

Kicking off the new year, Georgia Gov. Brian Kemp’s office announced $234 million of the state’s Capital Projects Fund (CPF) will be used to deploy new high-speed Internet infrastructure in the Peach State, courtesy of the American Rescue Plan Act.

The lion’s share of those federal funds, being administered by the state’s broadband office, will be gobbled up by the four national telecom giants operating in the state. The rest of the grant money will be shared by a half dozen electric cooperatives for smaller projects.

In total, the grants were awarded to 12 different applicants to fund 29 different projects across 28 counties.

“When combined with significant capital matches from the awardees, almost $455 million will be invested to serve over 76,000 locations in communities with some of the greatest need for high-speed Internet access,” the Governor’s office said in the Jan. 4 press announcement.

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The Big Telecom winners were Comcast, netting almost $67 million for eight projects that looks to extend broadband access to nearly 28,000 locations; $39.3 million for five Spectrum projects that plan to pass nearly 19,000 locations; Windstream raking in $34.8 million for four projects to make high-speed Internet service available to 4,500 locations, and MediaCom hauling in $27.9 million for three projects to reach 8,200 addresses. 

The electric cooperative grant awards were:

The City of Waterloo, Iowa has been flirting with the idea of building a municipal fiber network since 2005 when voters approved the creation of a municipal utility service. Voters said yes to the concept then but were not asked to put any money behind it.

"We were so excited we passed it, and then nothing happened. (The plan had) been gathering dust for 16 years," at-large Councilor Sharon Juon, a member of the city’s broadband committee in 2005, told the Waterloo-Cedar Falls Courier when the city council unanimously approved a $2.5 million contract with Magellan Advisors to design and engineer a fiber network last fall.

This is something our city needs so desperately. We've lost businesses because we don't have the broadband needed.

Now, officials in this northeast Iowa city of 68,000 residents (the eighth-largest city in the state) are ready to take the next step, going back to voters with a ballot question that seeks approval for the city to borrow $20 million to build the network backbone.

Voters will head to the polls to decide the question on September 13. It will need 60 percent approval at the ballot box for the measure to pass.

The ‘Time is Here’

Characterizing the effort to build future-proof fiber infrastructure as “good for the long-range interest of this community,” Waterloo Mayor Quentin Hart told The Courier:

For the past 15 to 20 years, the city has done a lot of talking of needing to do this and to work for our own fiber network, and the time is here.

Should the ballot measure pass, the funds would be used to build a 100-mile fiber backbone to support the city’s sewer, storm water, traffic, and water systems. Consultants to the city have said that general obligation bonds are not required, but would be used to lower the cost of financing the overall project.

Because its downtown buildings were made to resemble Windy City architecture, Fort Dodge was once nicknamed “Little Chicago.” But now, this north-central Iowa city with a population of just under 25,000 is building something the real Chicago, 360 miles east of Fort Dodge, does not have: a municipal fiber-to-the-home (ftth) network.

Having secured up to $36.8 million in loans from a consortium of local banks, the Cedar Rapids-based engineering firm HR Green has been hired by the city to put together a final engineering and design plan for a city-wide fiber network.

The RFP to do the construction work will go out to bid in late spring 2022, with actual network construction slated to begin in the summer of 2022. City officials say the new utility will likely begin offering high-speed Internet service to Fort Dodgers as soon as the summer of 2023, though the network won’t be fully built-out city-wide until 2024.

Unserved, Underserved and Poorly Served

In many rural communities, local governments, cooperatives, public entities, or nonprofit organizations will sometimes build the infrastructure necessary to deliver high-speed Internet service to the unserved and underserved because incumbent providers don’t see enough short-term ROI to justify the expense. But in more densely populated locales, municipal broadband is often pursued because the existing service from private providers simply isn’t up to par. The market has failed rural, suburban, and urban communities - just in different ways.

And that’s why in cities like Fort Dodge, the feasibility study commissioned by the city hits on a familiar refrain found in feasibility studies across the nation:

“Despite being the largest city in the region and key commercial hub, Fort Dodge telecommunications infrastructure is less advanced than in surrounding rural areas and small towns like Lehigh, Dayton, and Badger.”

Vinton, Iowa’s municipal communications utility, iVinton, connected its 1,000th subscriber with high-speed fiber optic Internet service this week.

Demand for fiber-to-the-home (FTTH) connectivity across the 4.74-square-mile Iowa community (est. pop. 5,100) is so substantial that iVinton, governed by the Vinton Municipal Electric Utility (VMEU), is having to schedule installations a month out as requests for residential service have surpassed the manpower available to complete them as quickly as they had hoped. 

As the telecommunications utility transitions out of its start-up phase – from working with external consultants to bringing all operations in house and limiting outside vendors – the biggest challenge iVinton has had to overcome is not having enough employees to take on the necessary roles, Matt Storm, iVinton’s Municipal Communications Manager, told ILSR in a recent interview. 

Still, the utility is plugging away to keep up with requests for residential installations as iVinton is eager to meet the surge in demand. “We’re supplying a service that’s needed for the community, and the community has responded,” Storm told ILSR.

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Just over a year into the municipal fiber network being operational, 1,000 of 2,450 residential and business premises, or 41 percent of the available premises in Vinton have made the switch. They've been lured by increased bandwidth, a higher quality of service, and the benefit of iVinton being a local provider with service technicians in town. Today, iVinton offers three symmetrical speed tiers to residents: 100 Megabit per second (Mbps), 250 Mbps, and 1000 Mbps connections for $70, $90, and $120 per month respectively. 

Our new report, Minnesota Broadband: Land of 10,000 Connectivity Solutions [pdf], showcases the diverse range of approaches communities and local Internet Service Providers (ISPs) have taken to expand affordable, high-quality Internet access in Minnesota. It includes a series of case studies that detail how communities are meeting the connectivity challenges of a broken marketplace shaped by large monopoly service providers. 

The profiled projects include municipal networks, public-private partnerships, cooperatives, and private investment. They run from the most rural areas of the state to Minneapolis. Some examples include:

• RS Fiber Cooperative, in south central Minnesota, which has brought fiber to local businesses and town residents. Rural residents benefit from RS Air, a fast wireless service available at affordable prices.
• Arrowhead Electric Cooperative’s fiber network in Cook County, which succeeded beyond original projections. It provides fast and affordable Internet access to one of the most far-flung parts of the state.
• St. Louis Park’s partnerships with both ISPs and the builders of large condominium complexes. One of the providers working with St. Louis Park is better known as the fastest ISP in Minneapolis, USI Fiber.
• Christensen Communications, a 100+ year-old telephone company in south central Minnesota. The company demonstrated a strong commitment to its communities when the pandemic hit, and is now going above and beyond to build fiber with federal subsidies.
• The Fond du Lac Band, in northern Minnesota, which built a fiber-to-the-home network that is rare in Indian Country.

Ry Marcattilio-McCracken, co-author of the report and Senior Researcher with ILSR’s Community Broadband Networks initiative, said of the report’s findings: 

Minnesota communities and local ISPs have found creative and sustainable ways to build future-proof networks across the state, despite a broken marketplace and state barriers that favor slow-moving, out-of-state monopoly providers clinging to outdated technology. Lawmakers must stand up for the cities and towns that sent them to the legislature, and remove the obstacles that prevent a more competitive market and local broadband solutions.

Last summer we wrote about the slow but steady progress the city of Waterloo, Iowa (pop. 68,000) has been making towards improving local connectivity options for residents and businesses needing it. The city hired Magellan Advisors to perform a feasibility study for a possible Fiber-to-the-Home (FTTH) network in the fall of 2019, but things have been mostly quiet since, with news outlets reporting on a reluctance to release the results of the study for fear of what incumbent cable provider Mediacom would might do to hinder its efforts.

These fears are not without reason, given the company’s previous efforts in the region to slow the specter of municipal competition with lawsuits, complaints, and propaganda efforts in its service territory.

When last we heard the feasibility study would be released this spring, and while we still have not seen a copy, Waterloo must be encouraged. The city’s Telecommunications Board of Trustees established a resident-led municipal broadband utility committee on January 27th, giving the group the charge of tackling “risk mitigation, community marketing, digital infrastructure and finance and business strategy” for a future network.

When the announcement was made, Board Chair Andy Van Fleet said the work would serve as "critical pillars to move this project forward successfully when the time is right to turn the plan into actionable items."

Update: The Community Broadband Action Network (CBAN) notes that it looks like SSB 1184 is dead, having been shelved in committee yesterday. They say the "bill was briefly discussed by a subcommittee of the House Commerce Committee on February 16th, but postponed 'indefinitely.'"

Original story:

Less than a year after an attempt to hamstring municipal broadband in Iowa, local opponents are at it again. If you’ve been around the block, Senate Study Bill 1184 will look remarkably similar to SSB 3009 from last January 2020, and that’s because it’s nearly identical. 

Like its last incarnation, SSB 1184 threatens the viability of any new municipal broadband effort by placing draconian financial barriers in the way, and, if passed, handcuffs existing networks as well as those under construction. Though there are no public fingerprints on the bill, the word around the capitol is that Mediacom is behind it. Among its provisions are those that would:

Iowa is home to many community networks, from co-ops to muni cable, fiber, and other technologies. Three communities in the state have just recently made important announcements about their plans, and several others are moving forward with networks. There is so much happening in Iowa right now that shows potential for other states that don't limit competition.

There is a long history of local broadband excellence in Iowa for new networks to draw on. Cedar Falls Utilities was just recognized as the fastest ISP in the nation by PCMag. It has well over 20 years of success, but recent years have seen it sharing its expertise and facilities to lower the cost for other communities to build networks without reinventing the wheel. Local private Internet service provider ImOn is also a partner for these networks, offering voice services.

Many of these networks being built will be able to share services and lower their costs by being on the same ring to get some scale benefits despite being smaller communities. I remember many years ago when Eric Lampland of Lookout Point started pushing for this ring, and I am dumbfounded why we don't see more of this cooperation among munis and small providers in other states. Thanks to Eric and Curtis Dean of SmartSource Consulting who helped me with background for this Iowa update.

We have a brief mention of West Des Moines's recently announced partnership with Google Fiber in here, but we're finishing a longer post that solely examines their approach. Between this, that, and our Coon Rapids podcast this week, it is officially Iowa week on MuniNetworks.org!

Vinton

Vinton's new municipal fiber network has just started connecting subscribers, leading to a memorable testimonial in the local paper, Vinton Today: