In late February, private Internet service provider, Countrywide Broadband (CWB), announced that it and Seaport Capital together would acquire assets belonging to iTV-3, Inc. In addition to fiber networks developed in Peoria, Bartonville, and Bloomington, iTV-3 is deeply involved in bringing connectivity to the Urbana-Champaign community. The company leases fiber on the UC2B network, has expanded the network by deploying its own fiber off the UC2B fiber rings, and promised to expand the Fiber-to-the-Home (FTTH) network across the community.

In the agreement with iTV-3, the UC2B nonprofit has a right of first refusal to purchase any local iTV-3 assets deployed if iTV-3 is purchased by another company. In short, UC2B has 60 days from the date of the CWB and iTV-3 purchase agreement to decide if they want to purchase the iTV-3 fiber expansions. If the nonprofit decides not to purchase the fiber, it will continue to own the UC2B rings and CWB will own the expansion fiber.

It was only a few weeks ago that we wrote about the upcoming sale of Bristol's BVU Optinet. It is important for communities to recognize that as these networks are built, they are targets for purchase and consolidation. Fiber networks are a hot commodity and local governments may be tempted to plug short term financial problems with a sale that has implications for decades – long after those elected officials have left office. 

They Chose iTV-3

The open access (FTTH) network, one of the few last-mile projects awarded funding during the first round of the American Recovery and Reinvestment Act (ARRA), cost $26 million to deploy. The network offered affordable access to residents - as low as $19.99 per month. At first, UC2B operated the network, but the organization later sought a private partner to manage and provide services. In 2014, UC2B chose iTV-3, Inc. as a partner to offer triple-play and to expand the network.

Back in June 2015, Santa Cruz announced a municipal fiber project with Cruzio, a local company that offers Internet access, colocation services, and a range of other data solutions. After finalizing details of the partnership, the city is officially moving forward with the plan. 

This past December, the Santa Cruz City Council voted unanimously to begin the $45 million fiber network. Cruzio intends to complete the project in the next 3 years, bringing next-generation, high-speed Internet access to the home of the UCSC banana slugs.

International Excitement

With the network given the green light, the city was abuzz. The open access Fiber-to-the-Home (FTTH) network will provide new opportunities for entrepreneurship throughout the city. The Santa Cruz Sentinel reported that the project is drawing interest from across the globe:

“Already, we haven’t even built the fiber network and people are already excited to work with us,” said Economic Development Director Bonnie Lipscomb, adding that a delegation from Beijing, China, visited Santa Cruz last week to discuss the project.

The Financial Plan

Through the partnership with Cruzio, the city will take out a financing bond that will be repaid by Cruzio’s customers on the network. Any funding gaps will be paid for 80% by Cruzio and 20% by the city. In the end, the city will own the infrastructure that Cruzio will manage. 

The decision to create the network has not been taken lightly. The Santa Cruz Chamber of Commerce CEO Bill Tysseling, spoke to the years of consideration and deliberation before this decision:

“It feels good to [have it] be passed, we had this conversation several decades actually.”

Ting has chosen the Greater Sandpoint, Idaho, region as its next Internet access service area. The partnership will allow Ting to provide gigabit Fiber-to-the-Home (FTTH) Internet access to residents and businesses in Sandpoint, Dover, Ponderay, and Kootenai. The four communities are located in Bonner County, in the panhandle area of the state; approximately 9,700 people populate the proposed service area.

Rural Subscribers Want It, Need It, Will Use It

Potential subscribers can pre-order right away as part of Ting's "demand assessment" phase. Construction will begin later in 2016 when Ting determines there is sufficient demand in the region. 

In a March 2nd announcement:

“Internet speed and infrastructure is an issue that is on the national agenda,” said Elliot Noss, CEO of Ting and its parent company Tucows. “While it’s obviously very important to get major metros connected with fast fiber Internet, Ting Internet is proving that the fastest Internet access available isn’t just for city centers. Smaller cities and towns need faster, more reliable Internet too. Maybe even more so.”

Ting has made it known that it is looking for more communities that are willing to lease their publicly owned fiber to the company. Ting hopes to build upon municipal fiber assets to bring FTTH to cities, towns, and villages of all sizes. We are pleased to pass on news of this plan to bring high quality Internet access to one of many less populated communities in the U.S. One should not have to live in a metropolitan area just to get fast, affordable, reliable Internet access.

The Ting Community Is Growing

Approximately 30,000 businesses and residential properties in downtown Lincoln, Nebraska, will have access to gigabit Fiber-to-the-Home (FTTH) by the end of 2016.

ALLO Communications recently announced that is it ready to begin the first phase of its four-phase plan to bring better connectivity to the town of 269,000. ALLO will use the city owned network of conduit installed in 2012 to house its fiber and expand where necessary. 

The arrangement will bring a triple-play fiber network of video, voice, and data to the entire city by 2020. The minimum speed available will be 100 Megabits per second (Mbps) and a 1 gigabit per second option will also be available. Both tiers will provide symmetrical speeds so upload will be just as fast as download.

In addition to improving connectivity for residents, businesses, and anchor institutions, the network will improve public safety. When he announced the start of construction, Mayor Chris Buetler said:

“The city will also be able to utilize the fiber system to work with traffic lights and traffic flow. This will allow new smarter traffic flow, less idling cars and help eliminate pollution. This project is another example of public private partnerships and is evidence of how this process benefits the city and its people."

Lincoln is only one of several communities that understand the value of conduit for potential partnerships or for future municipal investment. To learn more about the history of the project, listen to Chris interview David Young and Mike Lang from Lincoln in episode 182 of the Community Broadband Bits podcast.

Huntsville Utilities and Google Fiber announced today that the utility will construct a dark fiber network and that Google Fiber will offer services to the community via the city's new fiber infrastructure investment.

We applaud Huntsville and Google for helping develop an innovative model that will create more choices for local businesses and residents. We believe this is an important step that can lead to a true market for Internet access, allowing people a real choice in providers while ensuring the network is accountable to local needs.

Next Century Cities (NCC) describes the arrangement as a "promising new model for ensuring greater access to high-quality broadband Internet." We see this as a significant step forward in creating competition and bringing high quality Internet access to every one. For many years, we have seen communities desire to invest in infrastructure but not have to engage in service competition with powerful rivals like Comcast or AT&T.

Huntsville Is Different

Google Fiber is already known for bringing affordable gigabit service to subscribers in Kansas City and Provo, Utah and they have plans to expand in a number of other communities. Huntsville will be more than "just another" Google Fiber community because the infrastructure will belong to the community.

Other providers will be able to offer services via the network as well, ensuring more competition and providing choice for residents and businesses. Smaller providers will have an easier time establishing themselves in Huntsville with infrastructure in place on which to offer services. If subscribers are not happy with one provider, there is a good chance that there will be other options.

As communities across the country realize the big corporate providers may never bring the kind of connectivity they need, public-private partnerships (PPPs) are sprouting up everywhere. A new report by Joanne Hovis, Marc Schulhof, Jim Baller, and Ashley Stelfox, takes a look at the issues facing local governments and their private sector partners.

Interjection from Christopher Mitchell: Partnerships are emphatically not sprouting up everywhere. To be more correct, enthusiasm around the idea of partnerships is sprouting up in many places. But compared to the hundreds of municipal networks currently in operation, we could maybe name ten partnerhips in existence today.

The Emerging World of Broadband Public-Private Partnerships: A Business Strategy and Legal Guide examines the practical considerations when investigating PPPs for better connectivity. The report was published by the Coalition for Local Internet Choice (CLIC) and the Benton Foundation. 

The Benton Foundation sums up the three models explored in the report:

Private investment, public facilitation – The model focuses not on a public sector investment, but on modest measures the public sector can take to enable or encourage greater private sector investment. Google Fiber is the most prominent example, but there is significant interest among smaller companies

Private execution, public funding – This model, which involves a substantial amount of public investment, is a variation on the traditional municipal ownership model for broadband infrastructure—but with private rather than public sector execution.

Shared investment and risk – In this model, localities and private partners find creative ways to share the capital, operating, and maintenance costs of a broadband network.

The authors also share expertise on a range of legal topics that often arise when working with a private sector partner. They share their years of experience with matters such as confirmation of authority at state and local levels, project planning, and common issues related to negotiating the agreement.

Davenport, Iowa, is more committed than ever to bringing Fiber-to-the-Home (FTTH) to its residents and businesses.

At a January City Council public work session, current members detailed the city's plans for new members. Alderman Bill Boom noted that the community already has approximately 100 miles of fiber in place and by serving its own telecommunications needs, Davenport has saved $600,000 per year.

Connectivity As It Is Davenport

In January 2015, Davenport received the results of a feasibility study that documented lack of redundancy, inconsistent distribution of fiber, and complaints from businesses about speeds and costs. Incumbents are just not keeping pace with Internet access needs of Davenport's small business growth or the residential demand. Education and healthcare were two other areas where a fiber network could offer a long list of benefits to the community. The school district uses multiple providers because reliability is such a common issue.

People who live in Davenport also want better connectivity:

Residents, like retired University of Iowa Professor and resident of Davenport, Ezra Sidran also weighed in, saying they support a broadband infrastructure increase..

“I’m just for this, I don’t know the details all I can say [is] fiber optics are where it’s at,” Sidran said.

A Changing Community

Davenport, population 102,000, is part of the "Quad Cities" metropolitan area. The region includes four counties in northwest Illinois and southeastern Iowa and also encompasses Bettendorf, Iowa, and Rock Island, Moline, and East Moline in Illinois. The population of the entire area is approximately 384,000. 

In the 1970s and 1980s, the region endured some difficult economic times as the community shifted from agriculture and related manufacturing. International Harvester, John Deere, and Caterpillar factories all closed; the community has had to attract other employers. Hy-Vee, Tyson Fresh Meats, and Genesis Health System, are only a few of the major job located in the Quad Cities today.

Looking For A Partner

The East-Central Vermont Community Fiber-Optic Network (EC Fiber) recently announced plans to increase speeds across tiers with no increase in prices.

Changes will look like this:

• "Basic" will increase from 7 to 10 Megabits per second (Mbps)
• "Standard" will increase from 20 to 25 Mbps
• "Ultra" will double from 50 to 100
• The new "Wicked" plan will increase from 100 to 500 AND will include a price decrease. (Current subscribers to the Wicked tier who pay for 400 Mbps will also get the bump up to 500 Mbps and the price decrease.)

All speeds from EC Fiber are symmetrical so both download and upload are equally fast.

Self-Funded at the Start

Twenty-four communities in Vermont make up the consortium which began in 2009. The towns joined forces to deploy a regional Fiber-to-the-Home (FTTH) network when large corporate incumbent providers chose to invest elsewhere. Slow DSL was the best option in the area and local residents, businesses, and local institutions needed better connectivity.

Individual investors funded the initial network buildout but last year a new Vermont law took affect that allows towns to create "communications union districts." EC Fiber now functions under such a governance structure and organization officials expect to more easily attract larger investors and borrow at lower interest rates. EC Fiber hopes to answer requests to expand beyond its 24 member towns.

Characteristic Altruism

Increasing speeds with little or no rate increases is typical of publicly owned network communities. Tullahoma's LightTUBe, Chattanooga's EPB Fiber, and Lafayette's LUS Fiber have done it, often with little or no fanfare.