Not long ago, FairlawnGig in Ohio began serving businesses with symmetrical connectivity, offering speeds up to 1 Gigabit (1,000 Megabits) per second. The incremental build is progressing and now the city is offering Fiber-to-the-Home (FTTH) connectivity to residents in Fairlawn.

They Want It

According to a recent Akron Beacon Journal article, demand for residential services is already strong with more than 1,400 subscribers in line for installation; one-third of the installation is now complete. If 4,100 households and businesses in Fairlawn sign up, the city estimates it will break even. In the neighborhood where the first series of installations are taking place, 80 percent of households have signed up.

Fairlawn's goal is not to make profits from its investment; city leaders consider the network an essential piece of infrastructure like roads or sewers. They’ve chosen to fund the investment with municipal bonds, an atypical funding mechanism for Internet infrastructure. Their decision, however, underscores their commitment and belief that better connectivity is an essential service that will keep the community competitive.

“It’s going to make [Fairlawn] much more attractive,” [said local business development manager Mike Perkins]. “Fairlawn is at the forefront and everyone else is going to be playing catch-up.”

Nuts And Bolts Of FairlawnGig

When we interviewed Deputy Director of Public Service Ernie Staten about the project last spring, he described the city’s partnership with Extra Mile Fiber, an Ohio company that collaborates with Fairlawn to provide Internet access services. The city and Extra Mile will share revenue from the service, FairlawnGig.

Muscatine, Iowa, is ready to begin its upgrade, bringing municipal cable network customers up to Fiber-to-the-Home (FTTH) technology. Last week, the Board of Water, Electric & Communications Trustees from Muscatine Power & Water (MP&W) awarded the contract to a firm that will transform the network and bring speeds up to 1 Gigabit per second (1,000 Megabits per second) download tier. No word yet on upload speeds.

As we reported last spring, MP&W is taking a slow march toward finishing this project because there are a number of interlocking pieces that need to fit together correctly. The firm awarded the contract was able to introduce several alternatives that reduced the initial estimate of $8.7 million to $7.5 million. The upgrade will be funded with an interdepartmental loan from the electric utility.

At the same meeting, the Board also reviewed the 2016 budget which came out well for the MachLink communications utility.

Net income of $1,372,919 was budgeted for the communications utility, but actual net income was $2,148,272, with an ending cash balance of $8,257,000. There also is debt of $9,044,000 owed to the electric utility. Gowey said revenues were 3.2 percent over budget, while expenses were 25 percent under.

The upgrade will begin in May and customers are expected to be on the new system as early as August. The project should be completed by the end of 2018.

Folks in Ammon, Idaho, are now getting choice, speed, and affordability from their new municipal Fiber-to-the-Home (FTTH) network. Home owners are making the switch and waving "bye-bye" to the burdens of a broken market for the benefits of publicly owned infrastructure.

High Demand

Out of 369 homes in the first district, 239 have signed up to be connected to the open access network; 22 installations are complete. Installations are on hold until winter is over, but the city’s Technology Director Bruce Patterson expects to add more as people experience their neighbors’ fiber service. 

In order to connect to the network, homeowners pay for the cost of the installation themselves either with a $3,000 direct payment when the project is completed or through a special property assessment over a 20-year period. Property owners who don’t want to be connected aren’t obligated to pay. Residents or businesses connected to the network then choose an Internet Service Provider (ISP) from those offering services over the network infrastructure. The network’s technology makes switching providers a simple task that can be done online. 

ISP Like It, Too

Ammon makes it easy and inexpensive for new providers to offer services on their fiber as a way to encourage competition. Ammon told the Post Register:

“We tried to make sure the barriers to entry were as low as possible to encourage competition,” Patterson said. “There’s the potential for market disruption. If somebody else can get to you cheaper and present a better economic number, they have the potential to disrupt the marketplace, which is better for all of us.”

Mount Washington has selected a firm to handle the design and construction services for its planned Fiber-to-the-Home (FTTH) network.

Mount Washington

This past summer, the community received word that it would receive a $230,000 grant from the Massachusetts Broadband Institute (MBI), the state agency set up to administer federal and state funds for broadband network deployment. Mount Washington had already obtained special permission from the state legislature to proceed with a network sans a Municipal Light Plant (MLP). In Massachusetts, municipalities are required to establish MLPs to operate and manage any publicly owned Internet network. Because Mount Washington is so small, however, they felt creating another administrative entity would be an undue burden; state legislators agreed and created an exception for them in statute.

This past spring, they released a Request for Proposals (RFP) to locate a firm for design and construction.

An Important Step

The town of 150 full-time residents is located in the far southwest corner of the state and much of the community is covered by forest. The Mount Washington State Forest, the Mount Everett State Reservation, and the Taconic Mountains, give the community its nickname: “The Town Among The Clouds.” Incumbents have shied away from investing in Mount Washington; even plain old telephone service is bad there. 

The town considered participating in the Wired West broadband cooperative, but eventually chose to pursue their own network. Mount Washington’s publicly owned network will connect to MassBroadband 123, the statewide middle mile network. The network will also need to find an Internet Service Provider (ISP) to offer Internet access via the new infrastructure.

In the press release, announcing the decision to move on to the next step:

Glenwood Springs recently released a Request for Qualifications (RFQ) as it looks for firms to help them develop broadband planning. The Colorado community’s residential Fiber-to-the-Home (FTTH) pilot program obtained a 25 percent take rate just by word of mouth and according to the RFQ, community leaders in Glenwood Springs are ready to expand that success. Proposals are due February 28th.

Beyond The Pilot

We told you about the community’s early deployment of fiber for businesses, community anchor institutions (CAIs), and  municipal facilities, and how the city offered wireless service to residents. The pilot program offers the opportunity for 36 homes to connect to the fiber network; speeds range from 100 Megabits per second (Mbps) to 1 Gigabit per second (Gbps) at $40 - $70 per month, respectively. The program obtained a positive cash flow in its third month and broke even at 58 months, according to the RFQ.

The RFQ states:

The City is seeking qualified firms to assist the City with the development of (1) a financially sustainable broadband internet business model (“Model”) and (2) a detailed implementation plan.  The Model will consist of a comprehensive business plan, detailed financial model, and recommended financing options.  Upon successful delivery and adoption of the comprehensive business model (Phase 1), an implementation plan consisting of network design, construction documents, sample RFP documents, and a marketing strategy will be developed (Phase 2).  

Glenwood Springs already owns significant fiber resources, its own Broadband Department within the municipal electric utility, and has been operating the network since 2002. The community opted out of restrictive state law SB 152 in 2008.

Last spring we reported that Spencer Municipal Utilities (SMU) was marching steadily on with its Fiber-to-the-Home (FTTH) project that it started in 2015. Within a few months, SMU is set to begin the fourth and final phase; the entire community will soon will have access to fiber connectivity. 

Last And Final Phase

As part of the last phase, the utility will place a new substation in the northeast section of town. According to SMU General Manager and CEO Steve Pick, the utility has purchased a prefabricated structure built especially for this purpose. The structure will be delivered and installed by the sellers and the utility will pay approximately $40,000 for the building.

Spencer, Iowa, population 11,200, is one of the many rural towns that chose to invest in the necessary infrastructure to improve connectivity for local businesses and residents, rather than gamble on whether or not national companies would ever deliver. They began serving customers in 2000 with a cable network and, after they realized customers’ bandwidth demands would continue to rise, decided to upgrade to fiber. The network has been good for the quality of life and economic development in Spencer.

Prepping For The Future

Amanda Gloyd, SMU marketing and community relations manager, told the Daily Reporter:

“Our customers continue to use more bandwidth and we only see that continuing to increase in the future. In the areas of Spencer where the conversion is already complete, we are able to offer 50 [Mbps] all the way to 1 [Gbps] of service, which is exciting to be able to offer in addition to the increased reliability, decreased maintenance and paving the way for how our communication services will be delivered in the future.”

This is the transcript for episode 235 of the Community Broadband Bits Podcast. Lee Brown and John Williams from Erwin, Tennessee, join Christopher Mitchell to talk about the incremental build out of a Fiber-to-the-Home network. Listen to this episode here.

Lee Brown: The great thing about municipal broadband is it allows each community to decide what's right for them. We're in the greatest place of all time is being able to make that decision to do what's right for your community.

Lisa Gonzalez: This is episode 235, of the Community Broadband Bits Podcast from the Institute from Local Self-Reliance. I'm Lisa Gonzalez. We wanted to interview folks from Erwin, Tennessee for some time, now, and this week we're lucky to have them. The community, population around 6,000, has been building out a Fiber-to-the-Home system incrementally for the past few years. In addition to improving connectivity for residents and local businesses, the network has improved operations for the municipality's other utilities. Today, Christopher talks with Lee Brown, general manager of Erwin Utilities, and John Williams, fiber engineer. Lee and John, describe how the community had carefully considered what was best for them, before pursuing a fiber network. As it turns out they had considered fiber for a while before the circumstances were right to deploy. They started with a pilot program, and the network continues to grow. John and Lee offer Erwin's rational for the incremental approach, and share the way the network has improved services for all utility customers. Not only those that take Internet access services. Now, here's Christopher talking with Lee Brown, general manager, and John Williams, fiber engineer from Erwin Utilities in Erwin, Tennessee.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits Podcast. I'm Chris Mitchell, and today I'm speaking with two gentlemen from Erwin, Tennessee. We'll start with Lee Brown, the general manager of Erwin Utilities. Welcome to the show.

Lee Brown: Thanks, Chris. We appreciate being able to be part of this, today.

Christopher Mitchell: We also have with us, John Williams a fiber-optic engineer for Erwin Utilities. Welcome to the show.

The mythical Paul Bunyan was enormous. Paul Bunyan Communications’ GigaZone appears to be following his example as it continues to expand throughout northern rural Minnesota. The cooperative recently announced that they are expanding the upgrade once again, bringing Gigabit per second (Gbps) capacity to their members via the Fiber-to-the-Home (FTTH) network. This time, members in the communities of Kelliher and Northome will have access to the upgrade.

The Big Gig

The expansion brings gigabit network to more than 1,700 additional locations; this will bring Paul Bunyan’s GigaZone footprint to more than 29,400 locations. The network covers more than 5,000 square miles in Beltrami County and also reaches areas of Cass, Hubbard, Itasca, Koochiching, and St. Louis Counties.

In November 2016, the cooperative began offering service on the Red Lake Nation, which makes it one of only a few tribal communities with high-quality Internet access. Paul Bunyan provides gigabit connectivity to local schools for affordable rates and has been awarded the Leading Lights National Award for most Innovative Gigabit Broadband Service.

A Long Time Coming

Paul Bunyan Telephone began in 1950 when the residents in very rural northern Minnesota either had no telephone service, or received it from their townships, which meant they had to share lines with up to nine other customers. As a prerequisite to obtaining a loan from the Rural Telephone Administration (RTA) through the Rural Electric Administration (REA), the Co-op Board had to purchase and operate an existing system. They started with the privately owned Kelliher Telephone Company along with the Hendrickson Township Telephone system. In addition funds they had obtained by selling memberships in the cooperative, the board directors agreed to mortgage their own property as collateral so another local cooperative and a local bank would loan Paul Bunyan Telephone enough to purchase both telephone systems. It was a risk, but it paid off.

It’s no small feat to plan, deploy, and operate a municipal citywide Fiber-to-the-Home (FTTH) network, but communities are doing it. We’ve put together a Citywide Municipal FTTH Networks list and a map, with quick facts at your fingertips. If your community is considering such an investment, this list can offer a starting point on discovering similarly situated locations to study.

The list is divided by state and each state heading offers a description of any barriers that exist and a link to the statute in question. Under each community, we also included relevant links such as to the provider’s website, coverage on MuniNetworks.org, and reports or resources about the network.

We used four basic criteria to put a community on our list and map:

• The network must cover at least 80% of a city.
• A local government (city, town, or county) owns the infrastructure.
• It is a Fiber-to-the-Home network.
• It is in the United States. 

Share the list far and wide and if you know of a community network that meets our criteria that we missed, please let us know. Contact H. Trostle at [email protected] to suggest additions.