While Google Fiber and AT&T focus on the large cities of the Research Triangle of North Carolina, the small town of Holly Springs is pursuing a third option. 

Holly Springs will be the third town to see Ting’s “crazy fast fiber Internet.” After a successful foray into the U.S. mobile service market, the Toronto-based company Ting has started to provide Internet service by partnering with local governments. Ting will offer 1 Gbps in Holly Springs by building on the town’s $1.5 million municipal fiber network. 

Muni network restricted by state law

Holly Springs, with a population of almost 30,000, has worked hard to improve its connectivity. In mid-2014, they completed a 13-mile fiber Institutional network (often called an “I-Net”) to connect the municipal buildings and other public institutions, such as schools and hospitals. 

Unfortunately, when business and residents wanted to connect to the network, a North Carolina state law prevented the town from providing Internet services directly.  As it became obvious that Google Fiber would not pass through the town, leaders worked with a consulting company to try to draw in a private Internet service provider (ISP).

Ting! Innovative Partnerships

The locked-up potential of that fiber helped attract Ting. The municipal network's unused fiber will function as a backbone for Ting to deploy its own last-mile infrastructure, which will provide connectivity directly to homes and businesses.

Baltimore's City Council has decided it's time to move forward with a plan for city-owned fiber and they are putting pen to paper to get the ball rolling.

Since 2010, we have covered Baltimore's efforts to improve connectivity for businesses and residents. For a time, they expected FiOs from Verizon but when the provider announced it would not be expanding its network, Baltimore began to explore a Plan B.

Plan B included a publicly owned option, possibly making use of fiber assets already had in place. Mayor Stephanie Rawlings-Blake has supported taking steps to improve connectivity for Baltimore's economy, education, and general livability. A crowd funding initiative from the Baltimore Broadband Coalition has raised over $20,000 and the community has commissioned several studies. Baltimore even has a city broadband czar.

City Leaders Push On

Members of the City Council have recently renewed the call to action. Council Member Mary Pat Clarke introduced a resolution in September calling on the city to quickly develop a broadband plan. The resolution calls for fiber to all homes, businesses, and institutions in Baltimore in order to bring better connectivity to low-income households, improve economic development, and improve options for anchor institutions. 

The resolution has been referred to the Departments of Planning, Transportation, Public Works, Finance, City Public School System, and is now in the Mayor's Office of Information Technology.

Westminster Inspires Immediate Action 

After several years of planning, deployment, and the formation of a partnership with Ting, Westminster's fiber network is now serving its citizens. In August, local CPA Tim Redmond and his wife Allison were the first to get gigabit Internet access, according to a Ting press release.

Apparently, Redmond has been waiting for some time to be able to access such speeds online:

Redmond has followed along with Westminster’s efforts to get the gig for city residents. He first learned of gigabit fiber Internet coming to town in a pretty low-tech way. “We got our water bill and there was an enclosure. It described that fiber optic Internet was coming to Westminster” and introduced Ting Internet as the service provider for Westminster.

It was welcome news; Redmond has been following fiber since his college days when Verizon started to push FiOS in Baltimore. When it became clear that big providers aren’t willing to go anywhere but a major metro, he became despondent. OK, despondent might be a slight overstatement. “I was bummed,” is what he actually said.

Redmond first used his new gig Internet access to fire up his computer and telecommute to his office. Like many residents in Westminster, he will use the network to do more of the same - something he could only wish for prior to the city's initiative to bring publicly owned infrastructure to town.

Listen to Chris interview Dr. Robert Wack, the man who spearheaded the initiative, in episode #100, and Tucows CEO Elliot Noss, parent company of Ting, in episode #134 of the Community Broadband Bits podcast.

In a September 9th speech to the National Association of Telecommunications Officers and Advisors (NATOA), Gigi Sohn, Counselor to the Chairman at the FCC, encouraged government officials to build their own networks. She told attendees at the annual conference in San Diego:

Without question, the landscape is changing for local governments, but in a good way. Most significantly, the future is not in cable, but in broadband. Even the cable operators acknowledge this.

Rather than wait for incumbent ISPs to build the network your cities want and need, you can take control of your own broadband futures. Rather than thinking of yourselves as taxers and regulators, which has been the traditional role, you can think of yourselves as facilitators of the kind of services you’ve been begging the incumbents to provide for years.

This is incredibly exciting, and I’m sure somewhat frightening. But the new model for local governments looks to benefit their citizens through externalities, not direct revenues. 

Sohn referred to networks in Sandy, Oregon, where gigabit connectivity is available for approximately $60 per month. She also mentioned the increasing role of partnerships like the one between Westminster, Maryland and Ting. Sohn commented on the changing approach at the FCC:

We are making changes of our own at the FCC to reflect the shifting broadband landscape and make sure that we seize the new opportunities and mitigate the challenges. For example, we pre-empted restrictions on community broadband in response to petitions from community broadband providers in Tennessee and North Carolina.

Read more of Sohn's speech online at the FCC website.

The National Association of Telecommunications Officers and Advisors (NATOA) recently named the public private partnership (P3) between the City of Westminster, MD and Ting Inc. as 2015’s “Community Broadband Innovative Partnership of the Year.”  NATOA will officially honor the partnership at their Community Broadband Awards ceremony in San Diego this week.  

In a press release NATOA praised the P3 “...for showcasing an entirely new approach in public private partnerships to reach the common goal of bringing next generation fiber broadband to communities while demonstrating the possibility of creative solutions.”  In Ting’s own press release announcing the award, they described their unique arrangement as private partners in Westminster’s initiative aimed at providing their rural community of more than 18,000 people with blazing fast fiber internet service:

“We have agreed to an open access model. For a period of time at launch, Ting will be both the exclusive network operator and the exclusive service provider. After that, while we will maintain the exclusive role of network operator, we will open up the network to competitive service providers. That gives Westminster the dual benefits of stability and competition. They know that the network will be managed competently by one closely managed relationship. They also know that their businesses and residents will benefit from having many providers competing to offer them the best service at the best price.”

As Westminster begins serving customers with its new FTTH network and partner Ting, we were curious how many communities are there where a residential subscriber can obtain affordable gigabit access? We estimate the number of networks, large or small, where a majority of residents in a community can obtain gigabit service for $100 or less to be 12. Westminster will be there in a few years.

Update: Russellville, Kentucky; Salisbury, North Carolina; and Wilson, North Carolina, also offer a gigabit, bringing the total number of citywide gigabit networks to 16. On September 1, we added another network that we previously overlooked - CSpire in Quitman and Flora, Mississippi (and soon others).

Municipal citywide, sub $100 gigabit providers:

• Leverett, Massachusetts
• North Kansas City, Missouri
• Chattanooga, Tennessee
• Tullahoma, Tennessee
• Sandy, Oregon
• UTOPIA Cities, Utah
• Russellville, Kentucky
• Salisbury, North Carolina (Fibrant)
• Wilson, North Carolina (Greenlight)

We included municipal networks, cooperatives, and privately owned companies. When considering networks that cover multiple jurisdictions in a single area, we counted it as one (thus Google counts as 1 in KC, Chattanooga is 1 in TN). And we were looking for gigabit networks - not just gigabit download. While we prefer to see symmetrical connections, we accepted 500 Mbps up for our threshold.

Westminster recently officially lit up the new fiber network with its partner Ting. They create several videos to record the event, including this montage of interviews with movers and shakers in the municipal network industry. The two partners announced their agreement earlier this year: the city will own the infrastructure and Ting will provide retail services to local residents and businesses via the network.

In the video you will see Dr. Robert Wack, the City Council Member behind the initiative, along with leading telecom attorney Jim Baller, Gigi Sohn from the FCC, and Deb Socia who heads up Next Century Cities.

Check it out:

When Westminster, a community of 18,000 in rural Maryland, found itself with poor Internet access that incumbents refused to improve, it decided to join the ranks of a growing trend: public-private-partnerships between local governments and private companies to invest in next-generation Internet access. They are now working with Ting - one of a growing number of private sector firms seeking partnerships with cities – though how partnerships are structured varies significantly across communities.

In building an infrastructure intended to serve the community for decades, city leaders knew Westminster should retain ownership of the network to ensure it would remain locally accountable. Ting is leasing fiber on the network and providing Internet services to the community with plans to offer some type of video in the near future. The public-private-partnership (or “P3”) includes a temporary exclusivity arrangement for two years or when a minimum number of subscriptions are activated. Westminster will then have the ability to open up its network to other providers in an open access arrangement. 

Communities are realizing that if they want better connectivity, they need to take matters into their own hands. As local leaders wade through the complex process of planning, financing, and deploying Internet network infrastructure, P3s are becoming more common. Communities with little or no experience in managing fiber optic networks may assume that P3s are safer or easier. That may be true or not depending on the specific P3 approach; the data is only starting to come in. P3s have been relatively rare compared to the hundreds of local governments that have chosen to build their own networks in recent decades.

Partnerships will continue playing a larger role  when improving local connectivity but this area is still maturing – there are already a few examples of successful P3s though many will also recall the failed Gigabit Squared P3 approach. 

A group of municipal leaders and their private sector small ISP partners submitted an ex parte filing with the FCC today stating that they see no reason to fear Title II reclassification of Internet access. The statement, signed by a variety of towns and providers from different areas of the country is reproduced in full:

Dear Chairman Wheeler,

As a group of local governments and small ISPs that have been working to expand the highest quality Internet access to our communities, we commend you for your efforts to improve Internet access across the country. We are committed to a free and open Internet without blocking, throttling, or discriminating by ISPs.

As local governments and small ISPs, we wanted to ensure you are aware that not all local governments and ISPs think alike on matters like reclassification. For instance, on July 18, 2014, the mayors of New York City; Portland, Oregon; and San Francisco called on you to issue the strongest possible rules to guarantee Net Neutrality. Each of these communities is also taking steps to expand and improve high quality Internet access to their businesses and residents.

Our approaches vary but are already resulting in the highest level of service available because we are committed to expanding high quality Internet access to supercharge local economies and improve quality of life. We have no interest in simply replicating older triple play model approaches. We want to build the infrastructure of the future and we see nothing in the proposed Title II reclassification of Internet access that would hinder our ability to do that. As Sonic CEO Dane Jasper has strongly argued, ISPs that don’t want to interfere with their subscribers’ traffic should expect a light regulatory touch.

We thank you for your leadership during this difficult period of transition. We understand that many of our colleagues have trouble trusting the FCC given a history that has, in many cases, ignored the challenges small entities face in this industry. But whether it has been increasing the speed definition of broadband, or calling for the removal of barriers to community networks, we have been impressed with your willingness to take on powerful interest groups to ensure the Internet remains a vibrant, open platform.

We look forward to working with you to ensure that future rules recognize the unique challenges of small providers and innovative approaches to expanding access.

Sincerely,