Traverse City has officially launched its new municipal Fiber-to-the-Home network in the northern Michigan town of 15,000. The city's municipal electric utility, Traverse City Light & Power (TCL&P), owns the network and operates it in a partnership with Fujitsu, with the latter building and initially helping operate it, but turning management over to TCLP as the city utility feels comfortable with each aspect of the operation.

TCL&P Fiber is being built incrementally, starting in the downtown area where the economic heart of the community lies. The first phase is estimated to cost $3.5 million and will offer 2,200 locations service. The rest of the community will be connected in coming years and perhaps ultimately areas outside the current electric footprint.

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Getting up to Speed

Traverse City has been working in the communications space for more than 10 years with dark fiber leases to major anchor institutions and key economic entities. In more recent years they were providing free Wi-Fi downtown while considering how to improve Internet access to smaller businesses and residents. For years, they examined various options, with serious consideration of an open access network where the city would build the infrastructure but other ISPs would use it to connect customers. 

In an interview today, TCL&P Executive Director Tim Arends told us that they moved on this project after sensing a lot of pent up demand for better service — with speed, reliability, and especially customer service as common complaints with existing service. Though TCL&P did not name check the existing providers, AT&T DSL and Charter Spectrum cable are the main incumbent providers.

Almost 54,000 electric cooperative residents will see the benefits of a statewide law change in Maryland after a summer filled with changes. After a state vote to allow deregulation, Choptank Electric, which serves member owners across nine counties in Maryland’s Eastern Shore, voted in August to become member-regulated so that the cooperative can pursue broadband projects in a part of the state that has long suffered from poor or no connectivity options. 

A State Law and a Membership Vote

The process unfolded earlier this year, when representatives for the co-op spoke with the legislature in Annapolis about offering broadband to its members. State law at the time meant that electric utilities were regulated by the Public Service Commission, which prevented them from entering the broadband space. 

The Eastern Shore sits across Chesapeake Bay, with 450,000 people living across its nine counties. Driven by a lack of connectivity options and a desire for economic development, area legislators submitted HB 999, which drew support from dozens of businesses, 1,200 current Choptank customers, and a number of local governments. The “Rural Broadband for the Eastern Shore Act of 2020” [pdf] passed the state legislature on May 8th, 2020, and freed the co-op from regulation by the Public Service Commission. Talbot County resident Pamela Keeton testified to the Senate Finance Committee:

The bottom line is, no one wants to pay taxes and no one wants to spend money, so we’re left with no Internet service.

Another year of the Broadband Communities annual summit is behind us, and it’s worth revisiting the most salient moments from the panels that touched on the wealth and variety of issues related to community broadband regulation, financing, and expansion today and in the future. We weren’t able to make it to every panel, but read on for the highlights.

Last Mile Infrastructure and the Limits of CARES Funding

The first day of the program saw some heavyweight sessions from Coalition for Local Internet Choice (CLIC) on last mile digital infrastructure. For communities at all stages of broadband exploration and investment — whether exploring an initial feasibility study, putting together an RFP, or already planning for the future by laying conduit as part of other projects — partnerships dominated the discussion, with timing and debt also serving as common themes. 

ILSR’s Christopher Mitchel helped kick off the conference by moderating the first panel in the Rural/Editor's Choice track, and was joined by Peggy Schaffer from Maine's Broadband Office (ConnectME), Monica Webb from Internet Service Provider (ISP) Ting, and Roger Timmerman, CEO of Utah middle-mile network UTOPIA Fiber. 

The group discussed the open access models to start, and the benefits that could be realized from two- or three-layer systems. UTOPIA Fiber has seen some explosive growth and spearheaded significant innovation recently as it continues to provide wholesale service to ISPs that want to deliver retail service on the network. Ting, which recently signed on to be one of two providers on SiFi Network’s first FiberCity in Fullerton, California, also acts as an example of what can happen when we break away from thinking about infrastructure investment and Internet access as one-entity-doing-it-all.

In the city of Fullerton, California (pop. 140,000), privately owned infrastructure builder and operator SiFi Networks has turned on the first section of what will be a city-wide, open access Fiber-to-the-Home network. The project makes Fullerton SiFi’s first FiberCity — a privately built, financed, and operated open access network it plans to duplicate in more cities across the country in the future. When complete next fall, the Fullerton FiberCity network will pass every home and business in the city, with the company's subsidiary, SiFi Networks Operations, selling wholesaling capacity to as many Internet Service Providers (ISPs) as want to enter the market. 

A Different Approach

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SiFi’s FiberCity model remains somewhat unique in the United States, and is much more common in Europe and Asia. CEO Ben Bawtree-Johnson attributes their success to cracking the economic code for private investment in open access information infrastructure, which has seen more attention in recent years as investors and fund managers have seen opportunities. “[O]ur vision really is to create as many last-mile fiber optic networks as we can across the USA in a long term sustainable fashion,” Bawtree-Jobson remarked on an episode of the podcast last fall. “[W]e're all about long term, dry, low yielding, risk mitigated investments, so everything we do is based around 30-year plus type investments.”

Over the summer, Windstream and Colquitt Electric Membership Corporation announced that the two entities will work together to expand fiber optic Internet access throughout the electric co-op’s service territory in rural south Georgia. Windstream, the fifth largest telephone company in the nation, will maintain ownership of the newly deployed network and use it to offer its Kinetic broadband services to residents and businesses, while Colquitt, which has more than 45,000 members, will take advantage of the fiber connectivity to improve the management of its electric grid.

The announcement came one year after Georgia lawmakers clarified that electric cooperatives in the state are able to invest in broadband infrastructure to serve their members and established guidelines for co-ops that want to get into the business.

Working Out the Details

According to Telecompetitor, the project will expand Fiber-to-the-Home connectivity and gigabit speeds to Colquitt members who currently have access to Windstream’s much slower DSL services.

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Windstream plans to use Colquitt’s labor force and its Rights-of-Way and electric poles to help deploy the network, but the telephone company will own the actual fiber optic lines. Colquitt will receive an indefeasible right of use (IRU) for some of the fiber capacity for internal uses and smart grid applications.

The Covid-19 pandemic has made it difficult for local governments to hold in-person meetings, but the people of Block Island, Rhode Island, didn’t let it get in the way of bringing better connectivity to their community.

Late last month, voters in Block Island’s sole town of New Shoreham gathered (at safe distances) in the local school building and on its grounds to approve $8 million in borrowing to build an island-wide, municipal fiber network. Residents were overwhelmingly in favor of funding the broadband network, which would be the first of its kind in the state.

Townspeople and visitors alike have been dissatisfied with communications services on the island for many years. In response, the town built a fiber network to connect anchor institutions last year. Now, New Shoreham is preparing to expand its fiber network to island homes and businesses.

“I believe the vote to authorize the pursuit of the island-wide broadband will prove to be a transformational vote in this town’s history,” Town Manager Jim Kern told the Block Island Times. “And the level of support for the proposal reflected that.”

Coastal Community Needs Connectivity

New Shoreham is home to about 1,000 year-round residents, but the island, located about 9 miles south of the Rhode Island mainland and 14 miles east of Long Island, New York, is a popular destination for summer tourists. More than 40% of Block Island is currently protected via conservation easements.

We published our first profile of the largest cable and telecom providers in 2018, where we detailed the lack of real choices most Americans had when it came to high-quality, reliable broadband. At the time, we found that for the largest Internet Service Providers (ISPs) investment was correlated to competition rather than the regulatory environment. Monopoly ISPs expanded their Fiber-to-the-Home networks only in areas where they faced competition, and rural Americans were left behind as a result.

Our 2020 report, Profiles of Monopoly: Big Cable and Telecom finds that these key points remain true, and the report includes a host of new maps to show it. From the report:  

• Comcast and Charter maintain an absolute monopoly over at least 47 million people, and another 33 million people only have slower and less reliable DSL as a “competitive” choice.
• The big telecom companies have largely abandoned rural America — their DSL networks overwhelmingly do not support broadband speeds — despite many billions spent over years of federal subsidies and many state grant programs. The Connect America Fund ends this year as a failure, leaving millions of Americans behind after giving billions to the biggest firms without requiring significant new investment.
• At least 49.7 million Americans only have access to broadband from one of the seven largest cable and telephone companies. In total, at least 83.3 million Americans can only access broadband through a single provider.

Read the 2020 report Profiles of Monopoly: Big Cable and Telecom [pdf].