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North Carolina Coop Fibers Up Rural Counties and More - Community Broadband Bits Podcast 188

North Carolina is increasingly split between those in urban areas, where some private sector providers are investing in next-generation gigabit networks, and rural areas where the big providers have no plans to invest in modern networks. But coming out of Wilkes County, a cooperative ISP called Wilkes Communications and River Street Networks is taking fiber where the big companies won't. 

This week, Wilkes Communications and River Street Networks President & CEO Eric Cramer joins us for Community Broadband Bits episode 188 to discuss their approach, history, and plans for keeping rural communities well connected. They offer gigabit fiber, telephone, and cable television services. Wilkes has already upgraded all of its original 8800 member-owners from copper to fiber, with some help from the broadband stimulus programs to reach the costliest areas. It is now expanding to nearby areas and has overbuilt the population center of the county after CenturyLink continued plugging away with last century solutions. 

Coops like Wilkes are especially important as North Carolina's Legislature has created barriers to prevent municipal networks like Wilson (coverage here) from serving their rural neighbors. 

This show is 25 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.

Transcript below.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Kathleen Martin for the music, licensed using Creative Commons. The song is "Player vs. Player."

Mount Washington Muni: Permission to Move Ahead Granted

The town of Mount Washington, Massachusetts, has successfully streamlined its ability to invest in a municipal Fiber-to-the-Home (FTTH) network.

On January 22nd, Governor Charlie Baker signed a home-rule bill specifically granting the tiny town of 124 residents a special authority:

"Notwithstanding any general or special law to the contrary, the town of Mount Washington may own, operate, maintain, manage or hire others to do so on its behalf, and to take any reasonable action necessary to establish and operate broadband high speed internet infrastructure and services without the establishment of a municipal light plant."

Another Underserved Rural Town

Mount Washington is located in the southwest corner of the state; much of the community is covered by the Mount Washington State Forest and Mount Everett State Reservation. Large incumbents do not feel investment in fast, affordable, reliable network infrastructure would pay off. Due to a small population, the Taconic Mountains, and thickly wooded geography, any return on investment will take longer in Mount Washington than in urban areas.

Brian Tobin from the town's Select Board told WAMC:

“The town of Mount Washington is about as underserved as you can get in terms of broadband,” Tobin said. “Some people have long-distance wifi and others have satellite internet, but neither of those are satisfactory and it’s certainly not a 21st century solution to having reliable broadband.”

The community recognized that if they want 21st century connectivity they would have to build a municipal network.

Not Sold On Wired West

Many other communities in western Massachusetts have committed to joining the Wired West Cooperative, which requires member towns to establish a Municipal Light Plant (MLP). The MLP is a state-required municipal entity responsible for the administration of a municipal network. Wired West officials describe it as a "cooperative of MLPs."

Speeds Up, Prices Steady (or Down!) With EC Fiber

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.

Fiber-to-the-Home May Be the Cherry on Top in Traverse City

In Traverse City, Michigan, big plans are underway. The local electric utility is considering constructing a Fiber-to-the-Home (FTTH) network for next-generation high-speed Internet access.

About 10,000 people call the "Cherry Capital of the World" home. The area primarily relies on tourism and high-speed Internet access can help diversify the local economy. At the moment, Traverse City Light & Power (TCLP) is holding planning meetings with community stakeholders to discuss how to build a network to meet the needs of the community.

An Opportunity for Connectivity

The city has been mulling over the possibility of general connectivity for a while - especially citywide Wi-Fi. In 2007, TCLP had just finished installing fiber optic cables to connect electrical substations. They leased some lines to large nonprofit institutions, such as school systems and health facilities, but they still had spare capacity. TCLP realized that they had the potential to expand to residents.

They partnered with the Downtown Development Authority to create a downtown Wi-Fi zone in 2014. The zone automated parking meters and connected tourists, but the Wi-Fi's technological limitations, such as signal strength, soon became apparent. TCLP concluded that citywide Wi-Fi would not be the best option for Traverse City.

Now community leaders are considering using existing fiber, which is already planted throughout the community. TCLP, city and county officials, and other stakeholders have discussed how to develop fiber assets for a FTTH network. The city has several options: a phased approach (connecting the city section by section), a pre-subscriber approach (connecting neighborhoods where people pre-subscribe in great number), an incremental build (slow and steady), or an immediate citywide build (all at once). They also still have to figure out exactly how to cover the costs. 

Economic Development and Community Vitality

Holding Their Breath in Bradley

Cleveland Utilities (CU), serving Bradley County, is carefully searching for the best way to improve connectivity for its southeast Tennessee customers. After exploring a number of possibilities, CU sees a partnership with Chattanooga's EPB as the brightest opportunity but their collaboration rests on lawmakers in Nashville or the U.S. Court of Appeals.

The Need Is There, The Neighbors Are Close

CU President, Ken Webb knows the community needs and wants something better than AT&T for Internet access or cable TV from Charter Spectrum, especially in rural areas. Residents and business owners have gathered at community meetings. Local community leaders have passed resolutions asking the state to roll back restrictions and contacted CU directly but the utility's hands are tied as long as state barriers remain in place.

For over 7 decades, CU has served residents and businesses, providing electricity, water, and sewer. After a 2015 feasibility study revealed a $45 million estimate to build out a triple-play fiber to the entire county, CU began considering a limited pilot project.

They have been talking with their neighbors, EPB, about the possibility of partnering for some time Webb told the Times Free Press:

"We don't want to reinvent the wheel," Webb said Tuesday. "We continue to study our options (for adding telecommunications services), but we would prefer for the state to allow us to have the option of working with EPB."

Waiting...Waiting...Waiting

Right now, the prospect of fiber in Bradley County appears to hinge on two possible outcomes. First, if last year's FCC decision to roll back state barriers is affirmed by the U.S. Court of Appeals for the Ninth Circuit and legal review stops there, the EPB will not need to worry about a legal challenge. 

Missouri Legislature Off to Another Anti-Muni Session: Pick Up Your Phone and Call!

If you pay attention to state laws affecting municipal networks in Missouri, you are experiencing an unsettling feeling of deja vu right now. On January 7, Representative Lyndall Fraker introduced HB 2078, a bill much like last year's Senate anti-muni bill. Fraker is Chair of the House Utility Infrastructure Committee, where  the bill is now awaiting a hearing, so it has a good chance of being heard sooner rather than later. 

Your Phone Call Required! 

Time to call Members of the Committee, especially if any of them represent you, and let them know that you expect them to vote against this bill. It is anti-competitive, opposed to local authority, and prevents new investment. Bad bill! 

Preventing Partnerships to Maintain The Status Quo

This bill would not only make it extremely difficult for local communities to invest in publicly owned Internet networks, but would complicate and delay public-private partnerships. A number of communities across the country already own infrastructure and are exploring ways to partner with private providers who want to use it to serve schools, businesses, and residents. If a community wants to lower telecommunications costs or obtain better services, this legislation would have them first jump through a series of obscure, expensive, and cryptic hoops. This legislation creates barriers that serve no purpose except to erect hurdles that discourage local communities from finding better providers.

Shoot-Out Over the WiredWest: MBI Pulls Funding in Massachusetts Saga

Officials from WiredWest Communications Cooperative in western Massachusetts spent years working with small towns creating a collaborative plan to develop a regional fiber network. The deadline for participation was, January 9th, a little more than a month away, and even though the trail had been thorny, the path now seemed clear. Suddenly, the state revoked critical funding, sending the carefully planned and negotiated project into shambles.

WiredWest Coop Born, Reborn, Ready to Ride

More than five years ago, a group of small towns in Western Massachusetts formed a communications cooperative that evolved into the WiredWest Communications Cooperative Corporation. Their goal was similar to that of any cooperative organization: use the collective resources of the member towns to construct a much needed utility - a fiber-to-the-home network (FTTH) - that could address a persistent problem for a group rural communities - the lack of quality Internet access.

The number of participating towns in the coop has fluctuated over the years; 44 towns are currently official members. Its business plan and operating agreement have also changed as member towns come to consensus on what presents the best path for their local needs.

As the coop refined its model, the business plan, and the operating agreement, WiredWest volunteers worked to secure early subscriber commitments from residents and businesses. Each community obtained a certain threshold of commitment in order to join the coop. To date, WiredWest communities have obtained approximately 7,000 early subscribers.

Each town must establish a Municipal Light Plant (MLP), a process consistent with Massachusetts State Law. The MLP is the entity that is responsible for owning and operating a municipal fiber network. WiredWest describes itself as a cooperative of MLPs with delegates from all 44 member towns as decision makers. The coop's business model also requires a series of votes to ensure local accountability before a town can be considered a member of WiredWest:

Hanover, New Hampshire, Taps New State Law for Network

The town of Hanover, New Hampshire (pop. 11,500), is considering building its own municipal fiber-to-the-home (FTTH) network following the enactment of a new state law that makes it easier for communities to take on such projects.

Under the new state law (Chapter 240, HB486-Final Version), New Hampshire towns and cities can now establish special assessment districts to finance telecommunications infrastructure, expanding a long-standing statute. Specifically, the law now includes “communication infrastructure” as among the types of “public facilities” for which a special assessment district can be formed.

Under the expanded law, communities can finance fiber optic networks by billing individuals who reside within the district for a prorated share of the cost of installing that communication infrastructure.

Prospects for Fiber Raised

Hanover town manager Julia Griffin told our Chris Mitchell in a recent podcast of Community Broadband Bits:

“For the first time I think there is a role here for a municipal entity to help ensure that fiber is installed and that homeowners and businesses have an opportunity to connect to that network."

...

“Prior to this we've been able to create districts for water and sewer and sidewalks and street lights and even for downtown maintenance; but never for communication infrastructure. Nor has the statutes that have been on the books for years, been as expansive as this one is in terms of laying out just how we make these assessment districts work.”

Since New Hampshire Gov. Maggie Hassan signed the special assessment districts measure into law last July, Hanover has started looking into building a municipal network. It is in the process of finalizing a contract with Wide Open Networks to perform the cost analysis and system network design.

Hanover Explores Building Fiber Network 

Full Speed (and Price List) Ahead for the Roanoke Valley Broadband Authority

After a rocky start and a long period of transition, the Roanoke Valley Broadband Authority in Virginia is preparing for the years ahead. Hoping to snag schools, hospitals, government offices, and Internet carriers with their prices, the Broadband Authority just released its proposed rate structure. 

They expect to complete construction of five major sections of the fiber network by early March. Starting in mid-April, customers will have service. The proposed rates are as follows:

  • Dark Fiber: $40-$100 per strand mile depending on whether the institution is a nonprofit
  • Transport Service (requires a 2 year term): speeds between 10 Megabits-per-second (Mbps) - 200 Gigabits-per-second (Gbps) for $350 - $4,510 
  • Dedicated Internet Service (requires a 2 year term): 10Mbps - 1Gbps for $550 - $5,687 

The full preliminary proposed rate structure [PDF] is available from the Broadband Authority’s website.

The Authority will hold a public hearing on Friday, March 18 at 8:30 a.m. on the rate structure. After the public hearing, the board may request to adopt the preliminary proposed rates. Local news has the rest:

Rural Kansas Cooperative Continues Fiber Network Expansion

In July, the Columbus Telephone Company (CTC), a cooperative in rural Cherokee County, Kansas, announced plans to expand its fiber-to-the-home network to the nearby city of Pittsburg. 

When CTC built the fiber network in 2004, it was the first 100% fiber-optic network in the state. This expansion marks the first time the coop has expanded outside Cherokee County, located in the southeast corner of the Sunflower State. 

New Branding for New Expansion

Last year, CTC announced the creation of Optic Communications, a new brand the company started to expand beyond their original footprint. The news of the expansion to Pittsburg comes after the network’s first expansion project last year. They built a fiber-optic ring that now links together Cherokee County’s three major cities: Columbus, Galena, and Baxter Springs. The coop has also acquired Parcom, LLC, the leading Verizon retailer in the region.

Subscription Details

Residential rates for stand alone Internet access from Optic Communications are $40 for 10 Megabits per second (Mbps), $50 for 20 Mbps, $65 for 50 Mbps, and $90 for 100 Mbps. All speeds are the same for both upload and download. Gigabit service is also available but rates determined on a case-by-case basis. Optic also offers customized bundles including subscription options for any combination of Internet access, phone, and cable TV service. 

Rates for the different bundled packages vary based on the number of cable TV channels the customer wants, access to DVR and HD capability, and which tier of phone service. The network also offers designated Internet access and phone rates for business customers.

A Long History of Innovation

The people in this rural community have a long legacy of telecommunications innovation. In 1905, a group of Columbus-based farmers started the CTC coop to bring telephone service to their rural homes. Throughout the 20th century, CTC provided phone service to people living within the 2.4 square mile serving area within the City of Columbus.