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Santa Monica City Net Case Study

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Santa Monica has built a fiber network called City Net that has lowered its own costs for telecommunications, helped to retain businesses, and attracted new businesses to the community. Built incrementally without debt, it offers a roadmap any community can draw lessons from. Unlike the majority of municipal fiber networks, Santa Monica does not have a municipal power provider – City Net is run out of the Information Systems Department. The vision for the network and its expansion was created in the Telecommunications Master Plan in 1998, standardizing the procedure that we now call “dig once.” Careful mapping and clever foresight laid the foundation for growth. The first goal of the network was to save public dollars by eliminating leased lines from private providers. The first $530,000 investment in fiber infrastructure ultimately resulted in an ongoing savings of $700,000 per year. As part of their long term strategy, the City reinvested those savings in expanding the network. Over the past ten years, the network has expanded to offer dark fiber and services of 100 Mbps to 10 Gbps to area businesses as well as free Wi-Fi to the public in many areas. Money that could have been spent on leasing slower, less reliable connections from existing providers has instead been used to expand public infrastructure and other public amenities. Free Wi-Fi, public safety video cameras, and realtime parking info are just a few niceties that enhance the quality of life in Santa Monica. Download Santa Monica City Net Case Study [pdf] If you want to stay up to date with these kinds of stories, be sure to sign up for our Community Broadband Networks once-per-week email newsletter.

Santa Monica's Telecommunications Master Plan

In 1998, Santa Monica created a Telecommunications Master Plan that has guided it for the past fifteen years in building an impressive fiber network connecting all community anchor institutions and many business districts. We have just released a case study detailing this effort, entitled: Santa Monica City Net: An Incremental Approach to Building a Fiber Optic Network. Below, you will find the original Master Plan and Exhibits. Santa Monica got it right - this document can still be a model today for communities across the United States. This document is particularly important for local governments that do not have a municipal electric department because it offers an alternative model run out of the IT department.

Utah Senate Bill Attacking UTOPIA on the Fast Track: SB190

UPDATE: According to Pete Ashdown, the amendment has been pulled. Stay vigilant, these things rarely just go away.

We reported earlier this month that UTOPIA was once again facing legislative attack at the state level in the form of HB60. While the House has focused on other issues, the Utah Senate is launching its own attack. SB190 has also put UTOPIA in the crosshairs and events are happening quickly. Time to contact your elected officials, Utah!

According to Jesse Harris at FreeUTOPIA.org, SB190 as originally crafted, could have curtailed a pending deal between UTOPIA and Australian firm Macquierie. From Harris' February 19 story on the bill:

It appears the legislature is determined to chase off a $300M investment in our state’s broadband infrastructure to appease CenturyLink. Sen. John Valentine is running SB190 which has been very specifically crafted to prevent any UTOPIA city from using the same utility fee that Provo has to pay down the bonds. Moving to a utility fee to provide transparency on the cost of the UTOPIA bonds has been a key part of the Macquarie discussions so far, so it could very well put the deal in jeopardy.

Since its introduction, the bill was heard in the Senate Business and Labor committee. There was broad and fierce opposition and Sen. John Valentine, the sponsor of the bill, amended it. The changes made the bill palatable to Macquarie and it passed through committee to the Senate Floor on Feb. 24.

After the bill passed through the committee, Valentine introduced a floor amendment that will prevent new cities from joining the network. Harris now reports:

An Increasing Call for Community Owned Networks

While Comcast focuses on increasing its market power rather than improving services in the communities it monopolizes, no one should be surprised that we are seeing a surge in interest for building community owned networks. We've heard from many people who want to learn how they can start - more than we can always respond to, unfortunately. We are working on a resource to answer many of those questions, but it always boils down to 2 things: building a supportive network of people and getting informed. Get the word out - especially to local business leaders and anyone else who may be supportive. There are many potential business models and financing opportunities, but some will work better than others in each community. That said, there are some basics that every community should be immediately considering. The first is building a fiber network to connect anchor institutions such as schools, libraries, first responders, municipal facilities, and the like (see our Fact Sheet on savings from such networks). These networks should be constructed in such a way as to enable future expansions to local businesses, residents, and generally everything in the community or even beyond for rural areas. That means choosing the backbone routes carefully and ensuring that as much fiber is available as possible. Using conduit with channels and always leave at least one channel free to pull a future bundle (replacing a smaller count bundle that can then be removed to continue having a free channel). Another smart move is to begin getting conduit and fiber in the ground as part of other capital projects, like street rebuilds, water main replacement, and the like. We will discuss how Santa Monica did this in an upcoming case study. In the meantime, there is no better resource than CTC Technology & Energy's recent report, Gigabit Cities: Technical Strategies for Facilitating Public or Private Broadband Construction in your Community. We have additional resources organized in two places: on MuniNetworks.org and on ILSR.org.

Processes for a Gigabit Community: Community Broadband Bits Episode 87

More communities are today considering how they can improve Internet access in their community than at any other time. Having a gigabit is quickly becoming the standard - not because we all need 1,000 Mbps but because we know that everything we want to do is possible on a gigabit connection. Video games aren't going to interfere with Netflix streaming or someone working from home. In this week's Community Broadband Bits podcast, Joanne Hovis joins me to talk about a recent paper stuffed with valuable information for communities seeking opportunities for better networks, whether publicly or privately owned. Joanne is the President of CTC Technology and Energy, which has just released Gigabit Communities: Technical Strategies for Facilitating Public or Private Broadband Constructions in your Community. The paper was financially supported by Google. We discuss the nuts and bolts of important strategies, including Dig Once type approaches and various ways local governments can use their processes to lower the future costs of building a fiber network. I don't know of a better paper on this subject - so I strongly encourage people to both listen to the interview and read the paper. Read the transcript from our conversation here. We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address. This show is 25 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed. Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to Valley Lodge for the music, licensed using Creative Commons. The song is "Sweet Elizabeth."

Montrose Asks Voters to Take Back Authority to Establish A Telecommunications Utility

Colorado communities continue to seek to restore local authority for telecommunications. In April's election, elected officials of Montrose will ask voters to approve a measure that gives the municipality the right to establish a telecommunications utility.

Centennial, a Denver suburb, approved a ballot initiative last fall to use city fiber resources as a way to provide indirect telecommunications services. Centennial's community leaders want to create the most business friendly environment as possible to spur economic development

Montrose is taking a similar approach, although the language on this ballot does not limit the City to "indirect services." Elected officials have not mentioned the desire to provide any specific services yet, but the language of the ballot question suggests they do not want limited possibilities.

The City Council approved the following language for the April 1, 2014 ballot:

"Without increasing taxes, shall the citizens of the City of Montrose Colorado re-establish their City's right to provide all services restricted since 2005 by Title 29, article 27 of the Colorado Revised Statutes, described as "advanced services," "telecommunications services" and "cable television services," including any new and improved high bandwidth services based on future technologies, utilizing community owned infrastructure including but not limited to the existing fiber optic network, either directly or indirectly with public or private sector partners, to potential subscribers that may include telecommunications service providers, residential or commercial users within the City?"

A Montrose Daily Press covered the decision:

“We’ve been working on improving our broadband in the community for quite some time,” Virgil Turner, city director of innovation and citizen engagement, said. “The city has recognized that broadband is an area where we are not on equal footing with the Front Range.”

FCC to Investigate Barriers to Community Networks

We are supportive of the announcement today from the Federal Communications Commission. We salute the FCC for beginning to examine how state level barriers against municipal networks deter investment in the networks both communities and the nation desperately need. From the statement:
The Commission will look for opportunities to enhance Internet access competition. One obvious candidate for close examination was raised in Judge Silberman’s separate opinion, namely legal restrictions on the ability of cities and towns to offer broadband services to consumers in their communities.
The FCC has a history of encouraging states not to pass such laws (Commissioner Clyburn, previous FCC Chair, former Commissioner Copps) and the National Broadband Plan made recommendation 8.19: "Congress should make clear that Tribal, state, regional and local governments can build broadband networks." Even if communities choose not to build their own networks, having that capacity changes the dynamic of the big cable and telephone companies - something Franklin D. Roosevelt described as the "birch rod" in the cupboard (regarding municipal electricity):
But on the other hand the very fact that a community can, by vote of the electorate, create a yardstick of its own, will, in most cases, guarantee good service and low rates to its population.

How Ammon, Idaho, Builds Digital Roads - Community Broadband Bits Episode 86

Ammon, a town of 14,000 in southeast Idaho, has been incrementally building an open access, fiber optic network that has connected community anchor institutions and is starting to become available to local businesses. Ammon Technology Director Bruce Patterson joins us to explain how the community has moved forward with its model for improving Internet access. They first sought some stimulus support for the network but were not selected. But in the process, they had set aside the match funding and found that it would be less expensive to link municipal buildings across town with their own fiber rather than leasing from an existing firm. It is worth emphasizing that Ammon has no municipal electric utility, but the water utility has been a key participant in the network. In fact, much of Ammon's success has to be attributed to the willingness of multiple departments to work together, supportive and thoughtful city council members, and a Technology Director willing to think outside the limits of how things had traditionally been done. We've been covering Ammon for a few years, those stories are available here. Read the transcript of our discussion here. We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address. This show is 25 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed. Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to Fit and the Conniptions for the music, licensed using Creative Commons.

Chattanooga's Fiber Network Praised for Great Customer Service

One of the main differentiator's of community owned networks compared to the big cable and telephone companies is customer service. Being rooted in the community, vested in its success, and employing local residents just means better, more prompt service. A prominent Chattanoogan recently explained

My last shout-out is to EPB Fiber Optics.  This is not a paid commercial, just an opportunity for me to brag on some people who know what they’re doing.  I am the first to go on social media and complain about whatever store or business is guilty of subpar service.  It’s human nature, and it often makes for a good story.  I started using EPB for my cable, internet and phone service about a month ago.  I have encountered three problems during that time, none of them major, but all beyond my level of expertise.  Each time, I called their help line.  Each time, I spoke to local people who did not put me on hold for extended periods, nor did they force me to learn a new language.  They always solved my problem within five minutes.  My blood pressure thanks you, EPB.  This is how it’s done.

We hear these stories frequently with community owned fiber networks. It is hard to do a national study that quantifies the benefits of better customer service, but if we could, we have no doubt the locally owned networks would bury the national cable and telephone companies.

Community Fiber Is Not Just About the Fiber

The focus on community networks tends to linger on the technology - FTTH is much faster and more reliable than cable or DSL services. But community fiber is only partially about the superior technology, as evidenced by a recent story over at Broadband Reports - "Verizon has been Quietly Increasing FiOS Fees." We don't see this behavior in Chattanooga, which has gone over four years without raising the fees for Internet access to telephone services. Community networks rarely increase their fees because the cost of delivering Internet and telephone services declines over time. Television prices go up, though less rapidly for community networks than big cable firms because the big firms demand a bigger margin. Further, we see that Verizon has been sneaking its price increases into things like the router rental fee, as Comcast and most providers have long done. At one point, renting the Comcast modem cost me $2, then $5, now $7, and in some places $9 I hear. Per month. I bought my own now - took less than a year to payback. But my bill has gone up even more since then, so I didn't gain much. Now Verizon is even charging for battery backup units:
In addition to price hikes, promotion cuts, the new gateway rental fee and the activation fee, Verizon also recently started charging users for the backup batteries in their ONT units, first charging users for backup battery replacement, then charging users to get any backup battery in the unit to begin with.
Anytime you hear someone arguing that munis should only be able to build their own networks where the private sector absolutely refuses, recall that community owned networks are not simply a consolation prize, they are often superior. Better customer service, lower rates over the long term, and more likely to invest in upgrades as needed - there is no good reason to condition this investment on the refusal of some other distant company to provide an inferior alternative.