How Chattanooga, Bristol, and Lafayette Built the Best Broadband in America
LUS Fiber now offers its business subscribers the current ultimate in broadband speeds. An April 5th press release from LUS Fiber reports that business customers of the state's only community-owned ftth network now have access to 1 gig symmetrical internet connections.
The ability to offer such fast speeds in both directions is a big draw to business customers, boosting the potential for economic development. In the press release:
“Gigabit service from LUS Fiber is one of the most robust Internet offerings on the market today,” says Terry Huval, Director of Lafayette Utilities System and LUS Fiber. “We built this community network with a promise to the people of Lafayette that we will work hard to provide them with new opportunities through this unique, state-of-the-art fiber technology…and that’s just what we’ve done.”
We have reported extensively on events surrounding the development of, and contiued corporate attack on, the LUS Fiber system. The local Lafayette Pro Fiber Blog reporter, John, notes how this advancement is rare in the US because the LUS 1 gig service can be offered to all business customers, not just those considered part of a "business core."
John also provides an excellent analysis of how LUS Fiber uses a different customer service approach than traditional ISPs. While he reports on engineering details, he also dicusses a key policy difference between providing the best service and providing any service:
Oversubscription and "best effort" is the name of the game for almost all ISPs and the bandwidth available to the last mile customer is in practice limited: if all subscribers were to use their full bandwidth at once the available speed would drop to a small fraction of the promised bandwidth. LUS has always played that game a different way, minimizing oversubscription and ensuring that even during busy hours of the day the customer's full bandwidth is available. That's in marked contrast to what I used to experience on Cox when the kids in my neighborhood got off the bus.
A recent article by Chloe Morrison on Nooga.com, highlighted the inquiries and envy from all over the globe about Chattanooga's awesome community fiber network. According to Rick Barrett of the Journal Sentinel, Milwaukee is one of many admirers with wandering eyes that keep taking a peak at Tennessee. No wonder! The "Gig City" has set the gold standard for connectivity. Additionally, the city has cleverly capitalized marketing the opportunities to spread the word about their network and to attract more economic opportunities.
Collaboration is the popular theme that is associated with development. When looking back in Wisconsin, collaboration seems rare to find. We have reported extensively on AT&T's attempts to instigate discord, drag out legal proceedings, and fatally halt the possibility of community owned broadband in Wisconsin. If the Badgers want to compete in the digital economy, as they claim they do, they will have to stop listening to the big cable and DSL companies:
Only a few Internet users, such as a hospital or a large company, would currently benefit from the full capabilities of a gigabit network that can move large amounts of data at incredible speeds. It's like buying a Jaguar when a Ford Focus would be perfectly adequate, said Andrew Petersen, spokesman for TDS Telecom in Madison. (from the Barrett article.)
We have all read this tired comparison before and it still seems silly from a technological perspective. Planning for the future is critical when investing in essential infrastructure. Technological advancement moves at a fast pace, rather than an adequate pace.
Consider this assage from the Nooga article and consider how many of the benefits of a next-generation networks TDS would actually care about:
What could you do if bandwidth was no longer a barrier? Choose your track and bring your world-changing gigabit idea to the Gig Tank.Whether you are an entrepreneur or student, there is an opportunity for you. But you better act fast! The deadline for applications is fast approaching -- get in your application before Tuesday, March 20 transitions into March 21. They have prizes and plenty of other benefits for the people selected to join the program. If you are the first to identify someone who joins the program, you could get some cash money yourself - so check out this video and spread the word.
Chelan PUD is asking the people of their rural community whether they “love” or “just like” their beleaguered and pioneering fiber-optic network. At a series of public input meetings to be held across the county over the next month, residents will have the chance to hear opinions from business, economic, and marketing consultants, as well as express their devotion, or lack thereof, to the network. The future of the network is in question and the Chelan PUD needs to hear from its owners.
At the first meeting, on February 28th, most residents of Chelan County said that having a locally owned and controlled network available to them was a priority. Consultants hired by the PUD said the fiber-optic network could be self-sustaining in the long term with changes in business planning. Recommendations included writing off internal debt, more aggressive marketing efforts to existing and ready locations, and collaborating with ISPs to obtain more subscribers in the open access network. Yes, the PUD Fiber-optic network has had its problems, including high installation costs due to the landscape and lack of conduit, changes in PUD leadership, and incompatible existing residential technology. Nevertheless, experts and the local community appear patient and cautiously optimistic. More meetings will follow; the next is scheduled for March 19th.
Providers lease from the PUD (state law prohibits them from competing directly with retail services) and proceeds from wholesale electricity sales have allowed the network to continue expanding. As we have reported in the past, the PUD is an open access network and while it has not been able to pay down its debt, and has had some difficulties, the PUD network has recognized value in the community, as evidenced at this first meeting. It certainly beats not having access to the essential infrastructure necessary to succeed in the modern economy.
At the current rate, EPB can shave seven years off the time it will take to pay off its telecom debt, becoming virtually debt-free by 2020 instead of 2027 as projected, Eaves [EPB CFO] said. Even so, the government utility still is spending money to sign up new customers, a process that will increase debt until 2013, Eaves said. The utility has $51 million in total debt so far, but it only needs 30,000 customers to break even on operational costs, Eaves said. "We are currently cash- flow positive from an operations standpoint, but still increasing debt to fund the capital associated with signing up new customers," he said.As we frequently remind our readers, finances are complicated. Even though the network continues to do very well, its debt will increase for a few more years while it continues rapidly acquiring new subscribers. Each subscriber takes years to pay off the debt of connecting them. Recall that EPB unexpectedly got a Department of Energy stimulus grant to deploy its smart grid much more rapidly than planned for. As the electric division owns much of the fiber fabric, the grant does not impact the finances of the Fiber-Optic division, aside from allowing EPB to roll the network out to more people more rapidly. The changed plan increased their costs and their revenues over the original plan.
Today, the Institute for Local Self-Reliance, which advocates for community broadband initiatives, is tracking more than 60 municipal governments that have built or are building successful fiber networks, just as they created electric systems during the 20th century. In Chattanooga, Tennessee, for example, the city’s publicly owned electric company provides fast, affordable and reliable fiber Internet access. Some businesses based in Knoxville -- 100 miles to the northeast -- are adding jobs in Chattanooga, where connectivity can cost an eighth as much.Though I encourage readers to read the full column, I love the conclusion:
Right now, state legislatures -- where the incumbents wield great power -- are keeping towns and cities in the U.S. from making their own choices about their communications networks. Meanwhile, municipalities, cooperatives and small independent companies are practically the only entities building globally competitive networks these days. Both AT&T and Verizon have ceased the expansion of next-generation fiber installations across the U.S., and the cable companies’ services greatly favor downloads over uploads. Congress needs to intervene. One way it could help is by preempting state laws that erect barriers to the ability of local jurisdictions to provide communications services to their citizens. Running for president in 1932, Franklin D. Roosevelt emphasized the right of communities to provide their own electricity. “I might call the right of the people to own and operate their own utility a birch rod in the cupboard,” he said, “to be taken out and used only when the child gets beyond the point where more scolding does any good.” It’s time to take out that birch rod.
We have had one instance where we needed to contact customer service, and the problem was fixed quickly and easily by the most polite customer service rep I’ve ever dealt with. Comcast came by recently to offer us a “substantial savings” if we’d make the switch back to them. My question was, why now? I was a customer for years and treated poorly as rates increased exponentially. Now the offer the discount? No thanks. For the $5 extra per month that we pay for EPB, we receive better features, prompt and polite customer service, and an all around trouble free experience. Thanks EPB!