Chattanooga's EPB Fiber on Community Broadband Bits Podcast Episode #59

Fiber to the Home
This summer, Broadband Communities Magazine published its list of 135 municipalities that have invested in their own FTTH networks. In the May/June issue, Masha Zager finds that a growing number of communities are building fiber to the home networks. Subscriptions to the magazine are available here.
In her accompanying article [PDF], Zager describes her precise criteria for inclusion on the list:
All the network deployers on this list
• Are public entities, consortia of public entities, consortia of public and private entities or, in a few cases, private entities that benefited from significant investment or participation by local governments.
• Own all-fiber networks that connect local homes or businesses to the Internet (or are actively developing such networks).
• Make available – directly or through retailers – such services as voice, Internet access or video (or are planning such services).
Zager left out commuities with Institutional Networks (I-Nets) that only serve government or schools. The list also omits communities that only lease dark fiber and those that provide services over cable or wireless.
The article discusses commonalities between municipal network communities, including the fact that many communities first run their own electric utility. Often I-Nets come first, serving municipal facilities, schools, and libraries. Next the network will serve commercial and industrial clients. Expansion to single and multi-dwelling households is usually the last step in community connectivity. As our readers know, the deployment and funding approaches can be as unique as the communities they serve.
Zager notes that a growing trend shows larger cities entering the telecommunications business. In the past, networks graced primarily small to mid-sized communities. Those communities were large enough to have necessary resources, but small enough to be ignored by major telecommunications providers.
We have followed developments in Leverett since we first learned about the small town's decision to build its own next generation infrastructure. The community has faced some challenges but is determined to get its residents connected.
After an overwhelming vote to support a bond measure and minor tax increase to fund the network, Leverett encountered delay when the State attorney general ordered a new bid in April. According to a GazetteNet article, a technical glitch on the bid form allowed bidders to exclude themselves from parts of the project, affecting the overall bid. Leverett awarded the first bid to G4S, but two other firms submitted complaints prompting the review.
After reviewing revised bids in May, Select Board awarded the $2.27 million contract to Millennium Communications Group. The GazetteNet reports that Millennium met with town officials in June to answer questions and examine the bid in detail.
The GazetteNet spoke with Select Board Member Peter d'Errico:
“When this is up and running, Leverett’s going to have state-of-the-art, worldwide telecommunications capability,” d’Errico said. “It’s comparable service to what Google is providing in Kansas City, and it means that Leverett will also become a desirable place for all kinds of people who work in the mediums that require that level of technology. I see it as having economic benefits for the town, cultural benefits for the town and when you add in things like telemedicine, it means that it’s more than lifestyle, it’s quality of life.”
Scheduled completion date is December 2014.
The Longmont community will soon have the chance to decide how quickly they want ubiquitous FTTH. On July 23rd, the City Council unanimously approved a proposal to ask voters in a referendum if they want to bond for funds to speed up construction of the LPC fiber network. Absent bond financing, the network will expand much more slowly over many years.
Readers will remember the 2011 referendum to allow the electric utility to offer broadband services to the people and businesses of Longmont. At the time, Comcast spent over $300,000 via the Colorado Cable Telecommunications Association to fund an unsuccessful Vote No astroturf campaign. The community approved the measure with 60% of the vote. There was an earlier referendum in 2009 that ended in a victory for Comcast following a successful astroturf campaign. Records showed a similar infusion of cash to sway the vote.
In the recent meeting, some Council Members expressed concern over the city bonding to invest in the telecom business. The Longmont Times Call reported on the meeting:
"We're again a government playing in the private world of capitalism," [Councilman Brian] Bagley said. "What if we don't know what we're doing?"
City Manager Harold Dominguez noted that even if voters approved a bond, the city could still take on a partner. If it passes, he said, the city would have a pretty good idea of how big a piece of the market it could get. And implementation wasn't a huge risk, he said, because the city already knew it could provide the service; it had been doing so for itself, the school district and a few other large users for years.
"Based on the information we've received, yes, we can do it," Dominguez said.
We introduced you to Olds, Alberta and their community network O-Net in 2012. Now this community of 8,500 will be the first Canadian "gig town" where residents will have access to a gig at incredibly low prices.
CBC News reports that the Olds Institute for Community and Regional Development, the nonprofit organization building the network, recently approved the upgrade. Residents with 100 Mbps will have access to a gigabit with no increase in price. Depending on how they bundle, the price for Internet will range between $57-90 per month.
CBC's Emily Chung noted how much of rural Canada offers only dial-up or satellite. Olds used to have the same problem; businesses were considering leaving town:
"We had engineering companies here who were sending memory chips by courier because there wasn't enough bandwidth to deal with their stuff," recalls Joe Gustafson, who spearheaded the project to bring a fibre network to Olds.
...
"Now there's no talk about people leaving because of bandwidth challenges."
The $13-14 million project, which also included a video conference center and 15 public use terminals for residents, launched in July 2012. The organization acquired a $2.5 million grant from the province of Alberta and a $6 million loan from the town of Olds. When incumbents were not interested in providing service over the network, O-Net adapted:
"We said, 'Well I guess if we're going to do this, we have to do our own services,'" Gustafson recalled.
The Olds Institute spent $3.5 million to buy the necessary electronic equipment to run internet and other services on the network and to build a central office to house it all. Last July, it launched O-Net.
The community-owned service offers not just internet, but also phone and IPTV services — TV signals carried on the network that includes dozens of SD and HD channels, and movies on demand that can be paused and later resumed.
WUNC 91.5, North Carolina Public Radio, recently introduced Greenlight to its audience. We have covered Wilson and Greenlight extensively since 2009. Will Michaels spoke with Will Aycock, highlighting the network's gigabit status.
"We're able to support the surveillance cameras and different sensors throughout the community to make us a smarter city. Certainly, we're able to support many institutions here such as schools and libraries," Aycock says.
"It's really about removing the barriers between our residents, our institutions and the Internet so that people have all the bandwidth they need."
In our 2013 case study, Carolina's Connected Community: Wilson Gives Greenlight to Fast Inernet, we documented the benefits to the community. Aycock commented on the role the network plays in bringing new residents and business to Wilson:
"We're actually seeing folks deciding to move to Wilson from other areas because they want access to this next-generation network," he says.
"People even decide, if they're going to build a house, where to build a house. For instance, radiologists want to be on the network because it helps them to more efficiently do their jobs from home."
Now if North Carolina's Legislature would just undo the 2011 power grab, when it passed legislation to revoke authority from communities to decide locally if building their own network made sense.
New Hampshire FastRoads will soon be working with Vermont's Sovernet to bring access to southern New Hampshire. According to the Brattleboro Reformer, Sovernet is ready to begin offering data and voice service as soon as the fiber infrastructure is complete.
"It's really exciting because while we do some business in New Hampshire we have not been able to do anything to the extent that we will be able to do on this fiber network," said Sovernet Vice President of Sale and Marketing Peter Stolley. "Needs over the Internet are constantly evolving and this gives us a virtually unlimited amount of speed to get to people."
Sovernet managed a similar project to New Hampshire Fastroads in Vermont, but in Vermont Sovernet installed and manages the fiber network.
FastRoads' open access model will provide infrastructure on which independent ISPs will offer service to community anchor institutions, businesses, and residents in underserved areas. The $7.6 million project is about 98% finished after a year-long installation period. New Hampshire Community Development Finance Authority, Monadnock Economic Development Authority and 42 towns in New Hampshire comprise the FastRoads collaborative effort.
Carole Monroe, New Hampshire FastRoads Executive Director told the Reformer:
"This project was done to reach the most rural and least served communities in this part of the state," Monroe said. "Up to now there has been no way to bring fiber to these homes and this is a great opportunity to get them that big broadband. We think that as more people come on board it will entice growth and allow us to expand our footprint to reach more businesses and homes."
We spoke with Monroe in Episode #36 of the Broadband Bits podcast. She shared a history of the challenges facing the collaborative and how the network was already bringing benefits to the community, even before launch.
We last checked in with Opelika, Alabama, as they began testing their FTTH network in a pilot project. The community previously overcame Charter Cable's campaign of lies and passed a referendum. Voters approved the plan for a $41 million fiber optic communications and smart grid network. The community has been constructing the network, expanding testing, and building a network hub facility.
OANow.com reporter Tamiko Lowery reports "lightning in a bottle" will soon be serving the public. Customer service operations at City Hall will end on August 2nd when all Opelika Power Services (OPS) offices move to the new facility. June Owens, manager of marketing and communications spoke with Lowery about the anticipated launch:
“Fiber is going to put Opelika on the map like never before,” Owens said. “Opelika should be very proud. Nobody in the state is doing a project like this. And there is not much outside the state of Alabama like this. This is 100 percent fiber to the home. Fiber to the house doesn’t require the electronics in the field – this eliminates problems in the field that you might have with other types of systems. It is truly state-of-the-art equipment at its best.”
...
Still in “Testing Mode,” there is not a pin-pointed launch date for the fiber-optic network services.
“But we’re getting close,” Owens said.
She says that once operational, OPS will be able to offer lower rates than surrounding areas to the approximately 12,000 electric customers in Opelika. Once up and running full-speed, OPS will be competing with Charter, Dish and Direct-TV for Opelika customers. In the future, OPS will offer back-up data services to Opelika businesses.
Mayor Gary Fuller spoke with Christopher for Episode #40 of the Broadband Bits podcast. They discussed the community's decision to take connectvity in their own hands after years of dissatisfaction with Charter Cable.
Overall, 79 percent of households would have to pay $3,000 apiece to fully fund FTTP construction costs.YIKES! Cue the foreboding music! Palo Alto has something like 25,000 households.