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. 

The expansion in Champaign-Urbana has begun! On May 8th, iTV-3 held a ribbon cutting to celebrate the start of its plan to bring fiber to the homes of neighborhoods that sign up for service. IllinoisHomePage.net reported on the event with the video below.

An April press release announced the celebration that kicked off efforts to meet iTV-3's ultimate goal:

This will enable iTV-3 to expand the network and provide Gigabit service to more than 250,000 homes including 45,000 households and businesses in the Champaign-Urbana area. 

The company has promised to expand to neighborhoods where they achieve a 50 percent commitment. 

Earlier this year, the ISP increased speeds for free in order to offer service that meets the minimum speeds as revised by the FCC. The lowest tier available from iTV-3 via the UC2B network is now 30 Mbps. All speeds are symmetrical.

The UC2B partnership with iTV-3 has been heralded by public leaders. UC2B's private sector partner, iTV-3 is an Illinois company with a track record of business decisions that support local communities. Their agreement is structured in such a way that will protect the UC2B nonprofit and subscribers in the future. At the event, a representative from iTV-3 briefly described the company's approach to the communities it serves:

"We own and operate the Family Video stores nationwide as well, and for us, we've always enjoyed being part of the community and this in and of itself is a community wide effort," said Trevor Rice, who is the marketing director for iTV-3. "Without the community's involvement, we're not going to be able to expand." 

As the FCC works to update current policy to encourage ubiquitous Internet access and adoption, community networks are also taking an active role. Earlier this month, customers of iTV-3 received a boost in speed with no increase in price. iTV-3, a community minded local provider, chose to make the change in order to ensure all its customers were well within the new broadband speeds as redefined by the FCC in January 2015.

Early last year, UC2B and iTV-3 announced their new partnership. The company, which has provided services to residents and businesses to Illinois communities since 2009, is leasing UC2B infrastructure and equipment and will own any infrastructure it builds as part of expansion. 

iTV-3 increased customers' speeds by 10 Mbps, according to a press release on the change:

20/20 Mbps increased to 30/30 Mbps

40/40 Mbps increased to 50/50 Mbps

50/50 Mbps increased to 60/60 Mbps 

“We are increasing the speed tier of all existing Champaign and Urbana iTV-3 customers by 10 Mbps at no additional charge to ensure that every user will exceed the new FCC definition of broadband speed,” said Dinkla. “New areas will be constructed beginning this Spring, bringing gigabit Internet speeds to businesses and neighborhoods throughout the community.  iTV-3 gigabit Internet is yet another reason for people to be excited to live, work, and do business in Champaign and Urbana.”

The UC2B Network and its partner, iTV-3, will soon bring gigabit capabilities to more people in the Champaign-Urbana community in Illinois. According to the UC2B press release [PDF], iTV-3 will expand existing fiber to areas of the community to serve residents and businesses. iTV-3 will take subscriptions for commercial and residential access online at www.theperfectupgrade.com.

In a statement from the FCC, Chairman Tom Wheeler commented:

"Congratulations to Urbana-Champaign Big Broadband (UC2B) and iTV-3 on making gigabit services over fiber available throughout the community. This public-private partnership provides a valuable model for communities and companies throughout the country and a demonstration of the creativity that is stimulated when localities are free to work with the private sector to improve broadband offerings.”

UC2B and the University of Illinois at Urbana-Champaign received American Recovery and Reinvestment Act (ARRA) funds to deploy an urban FTTH network in Illinois. The not-for-profit corporation offered economical Internet service to residential subscribers in economically disadvantaged areas, some as low as $19.99 per month. The network also connected a number of community anchor institutions including schools, hospitals, and municipal facilities throughout the Urbana-Champaign metropolitan area.

According to a fact sheet on the project [PDF], the company is a subsidiary of a family-owned business that started in Springfield, Illinois. iTV-3 has been an ISP since the mid 1990s but also owns and operates over 775 Family Video stores in 19 states and Canada. UC2B chose iTV-3 because the company operates in a manner consistent with the Community Broadband Principles, core values guiding UC2B since inception. iTV-3 will also contribute to UC2B's Community Benefit Fund, established to improve digital literacy and digital inclusion. 

The Illinois community of Urbana, home of UC2B, recently passed a resolution in favor of FCC's section 706 authority. The community's fiber project is bridging the digital divide in this community of 41,000.

On March 17, the City Council voted unanimously to support the FCC as it considers action to discourage, prevent, and remove state legislative barriers that block municipal networks. 

The language is similar to resolutions from communities such as Sebewaing, Vidalia, Ammon, and Moultrie. Urbana noted in its resolution that it has made substantial efforts to bring access to more people in the community.  We interviewed Carol Ammons from the U-C Independent Media Center and Brandon Bowersox-Johnson from UC2B in episode 42 of the Community Broadband Bits podcast. Chris, Carol, and Brandon discussed the way the community is capitalizing on the rare urban FTTH network.

RESOLUTION NO. 2014-03-017R

A RESOLUTION TO SUPPORT FCC EFFORTS IN PROTECTING LOCAL AUTHORITY

TO BUILD BROADBAND INFRASTRUCTURE

The City of Champaign is now celebrating the transition to the UC2B fiber network. With underground fiber lines, the City will no longer be plagued by weather related interruptions. Champaign is also counting on significant savings on a network that is more than 1000 times faster than the old connections. From the City of Champaign website:

UC2B fiber and Internet access also means real cost savings to the City. The City will now save $30,240 annually by dropping all of our T1 data lines, and $31,200 annually by using UC2B as our Internet provider. While a significant portion of this savings is offset by annual maintenance fees for the fiber rings the City uses, we still save over $13,000 net annually and have a much faster, much more reliable system that will allow our digital data transfers and Internet use to expand for years to come!

For more on the UC2B network, listen to episode #42 of the Broadband Bits podcast. We spoke with Carol Ammons and Brandon Bowersox-Johnson, both involved in Champaign's efforts to use the UC2B network to its full potential.

On September 19th, the Urbana Champaign Independent Media Center (UCIMC) hosted "Models for Building Local Broadband: Public, Private, Coop, Nonprofit." Christopher Mitchell was one of several panelists who discussed local broadband options and challenges.

The presentors live streamed to 138 attendees with 93 watching remotely various locations and 45 at the Media Center. If you were not able to attend or stream the live event, you can now watch the archived version. You can learn a little about the event and watch it at the UCIMC website, or watch the YouTube video here.

The Urbana Champaign Independent Media Center (UCIMC) will be hosting what is sure to be an interesting online discussion about local broadband models. On Wednesday, September 19th at 4:30 CST, an expert panel will be presenting "Models for Building Local Broadband: Public, Private, Coop, Nonprofit." The event will be held at Urbana City Hall in Illinois, but you can also stream the event live here.

In addition to our own Christopher Mitchell from ILSR, we will hear from Joanne Hovis, CTC Technology & Energy (public interest telecom expert and also NATOA President) and Wally Bowen, Mountain Area Information Network (non-profit internet provider in North Carolina).

From the press release: