In October in Minneapolis, Broadband Communities Magazine hosted the “Fiber for the New Economy” conference. The first day featured a set of four panels on the role of rural electric cooperatives in providing much-needed connectivity to far-flung communities.

We want to provide the highlights and give further context to some of the most fascinating stories. In this post, we’ll cover some of the latest research coming out of Ball State University’s Center for Information and Communication Sciences.

Indiana’s Electric Cooperatives 

Researcher Emma Green from Ball State University kicked off the track. Her presentation, “Rural Broadband: Technical and Economic Feasibility,” outlined the potential role of rural electric cooperatives in facilitating last mile (connectivity to homes and business) and middle mile (regional connectivity) deployment. 

Green's research centered on Indiana, where 14 percent of the population does not have broadband access (speeds of at least 25 Megabits (Mbps) download and 3 Mbps upload). In rural areas of the state, however, more than half of the population does not have access to those speeds. Green's research underscored how rural electric cooperatives can use their assets (such as Smart Grids, Right-of-Way access, and pole ownership) to facilitate middle mile connectivity. 

We previously noted some of this research from Ball State University in our post BBC Mag Spotlights Rural Electric Co-ops. Focusing on the middle mile is not always a pathway to long-term last mile solutions, and our Christopher Mitchell has often pointed out those pitfalls. Unless a provider is willing to invest in the critical last mile connections, middle mile networks have only a minimal impact.

Rural electric cooperatives are providing next-generation connectivity. In Oregon a consortium of electric cooperatives called LS Networks built a middle mile network a few years ago and now are taking the next step with last mile connectivity.

LS Networks’ Connected Communities program hopes to bring last mile fiber connectivity to 25 communities in rural Oregon and Washington. Internet access will officially be available in early 2017 in some communities. Depending on the needs of each community, the solution could be Fiber-to-the-Home (FTTH), or fixed wireless using the fiber-optic network for backhaul.

Connected Communities

The project started in July, but LS Networks only now made the official announcement. The Connected Communities program asks folks to nominate their community to be connected by filling out a short form. LS Networks will offer two types of monthly plans [pdf]: 100 Megabits per second (Mbps) for $40 and a Gigabit (1,000 Megabits) for $70. Customers will also be able to purchase voice service for an additional $15 per line and 50 cents per phone number.

Currently, the small, northern Oregon town of Maupin is the only official Connected Community. LS Networks is already at work building out a fiber connection to nearly all of the 400+ homes and businesses in the community. On November 9th, Maupin residents can take part in a town hall meeting at the South Wasco County High School to learn more about LS Networks’ plans and the Connected Communities program.

Consortium of Cooperatives

Paul Bunyan Communications in Minnesota reports it has expanded its “GigaZone” Internet service territory to Turtle River, Puposky, and Tenstrike and to additional areas of Bemidji.

More than 2,800 additional locations now have access to, among other services, Internet speeds of up to 1 Gigabit per second (Gbps) following the recent upgrades to its fiber-optic communications network, the Bemidji-based co-op notes.  

"Over the next several months we'll be activating the GigaZone in many more areas,” Gary Johnson, CEO of Paul Bunyan Communications, said in a company statement. "We will continue to do as much as we can to bring the GigaZone to all our members and the communities we serve as fast as we can." 

GigaZone Locations Top 20,000 

The co-op said its GigaZone service is now available to more than over 21,600 locations. Previous areas served include rural Park Rapids, Lake George, Trout Lake Township east of Grand Rapids, most of Grand Rapids, Cohasset, and LaPrairie.

The co-op has an online map showing the active areas of the GigaZone as well as future areas that are set for construction. The co-op said that members who subscribe to GigaZone Broadband can also add PBTV Fusion and/or low cost unlimited long distance phone service.

Co-op Wins Award In 2015

About a year ago, we reported that Paul Bunyan Communications won the 2015 Leading Lights National Award for Most Innovative Gigabit Broadband Service. The northern Minnesota cooperative beat out both local innovative local firms like C Spire and national companies like Google. 

Google Fiber has finally announced its plans for the future after weeks of dramatic speculation that it will lay off half its workforce and give up on fiber-optics entirely. Google has now confirmed our expectations: they are pausing new Google Fiber cities, continuing to expand within those where they have a presence, and focusing on approaches that will offer a better return on investment in the short term.

Nothing Worth Doing Is Easy

In short, Google has found it more difficult than they anticipated to deploy rapidly and at low cost. And in discussions with various people, we think it can be summed up in this way: building fiber-optic networks is challenging and incumbents have an arsenal of dirty tricks to make it even more so, especially by slowing down access to poles.

That said, Google is not abandoning its efforts to drive better Internet access across the country. In the short term, people living in modern apartment buildings and condos will be the greatest beneficiary as Google takes the Webpass model and expands it to more cities. But those that hoped (or feared) Google would rapidly build Fiber-to-the-Home (FTTH) across the country are likely disappointed (or slightly relieved, if they happen to be big incumbent providers). 

This is a good moment to talk about the lessons learned from Google Fiber and what we think communities should be thinking about. 

Let's start by noting something we have often said: Google Fiber and its larger "access" approach have been incredibly beneficial for everyone except the big monopolists. Its investments led to far more media coverage of Internet access issues and made local leaders better understand what would be possible after we dismantle the cable broadband monopoly. 

Benoit Felton, a sharp international telecommunications analyst wrote a very good summary of Google Fiber titled Salvaging Google Fiber's Achievements. Some of my thoughts below overlap his - but his piece touches on matters I won’t address, so please check out his analysis.

I want to focus on a few key points.

The results of a study are in and its authors recommend Stark County invest in a regional middle mile fiber-optic network, establish a broadband authority, and take other significant steps to keep the county from falling behind in today’s economy.

The Fourth Utility

The county has relied heavily on manufacturing and retail in the past but as those opportunities dry up, young people are moving away and the future is in jeopardy. Healthcare is another strong industry in the region, but access to high-quality connections is now a must-have for hospitals and clinics. Elected officials also recognize that diversifying the local economy to lure companies that offer higher paying positions will bring new blood to Stark County.

In order to attract new commerce to Stark County, Ohio, they formed a Broadband Task Team (SCBBTT) in the fall of 2014. They have adhered to the philosophy that connectivity is a “fourth utility” and should be treated like electricity, water, gas, or sewer systems. In May, the SCBBTT hired a consultant to perform a feasibility study; the firm presented its findings and recommendations on October 12th.

Consultants Offer Results, Recommendations

Consultants analyzed the amount of fiber in the county and reviewed the state of connectivity for businesses and residents and found both lacking.

Incumbents include local provider MCTV, which offers cable TV, Internet access, and phone services over its coaxial fiber network. Charter Communications, which recently acquired Time Warner Cable assets in the area, and AT&T offer cable and DSL but the feasibility revealed that there is very little fiber connectivity for residents or businesses.

They recommend that the county employ a six-pronged approach:

Residents of Salt Lake City’s Lorna Doone Properties will be enjoying Internet speeds of up to one gigabit for no cost, thanks to a partnership between Google Fiber and the Utah Nonprofit Housing Corporation (UNHC). In July 2015, the company announced that the Google Fiber Gigabit Communities program would bring free access to select low-income housing locations throughout cities within their service areas, and the residents of Lorna Doone are newest to this list. 

Google will supply Internet access and UNHC has a computer rental program, which is in part supplied by the local business community. In addition, the City of Salt Lake has helped to fund mobile computer labs to bring more low-income households online.

Internet access is vital not only for entertainment, but more importantly for completing homework, keeping up with the news, and participating in the digital economy. "We do not have cable television or anything, so it's a way that we stay connected,” Kelli Nicholas, a Lorna Doone resident said during Google Fiber’s launch event. "I read about our current events online, my son and I do homework things… [Google Fiber will] allow people who weren’t able to connect, to connect with one another.”

Aside from providing Internet access in the Lorna Doone apartments, Google has partnered with the Department of Housing and Urban Development’s ConnectHome program to provide gigabit service to public housing projects. A Google Fiber blog post announced the partnership:

“The web is where we go to connect with people, learn new subjects, and find opportunities for personal and economic growth. But not everyone benefits from all the web has to offer. As many as 26% of households earning less than $30,000 per year don’t access the Internet, compared to just 3% of adults with annual incomes over $75,000. Google Fiber is working to change that.”

Check out local video coverage of the launch event:

This is episode 223 of the Community Broadband Bits podcast. Eleven communities in Northern Utah are now served by a regional open access fiber-optic network, UTOPIA. Perry City's Mayor Karen Cronin and UTOPIA's Executive Director Roger Timmerman join the show. Listen to this episode here.

Karen Cronin: We don't have the money that some of the lobbyists are getting from big companies, but we have a voice and I think that our legislatures will listen to local voices if they have the courage to step forward.

Lisa Gonzalez: This is episode 223 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. The Utah Telecommunications Open Infrastructure Agency, also known as UTOPIA, began serving north-central Utah in 2004. The regional open access fiber-optic network has had its share of challenges since launch, but has slogged through them to now bring healthy competition to residents and businesses in 11 communities. Joining Chris this week are the mayor of one of the UTOPIA cities, Karen Cronin from Perry. Roger Timmerman, executive director of UTOPIA, is also part of the conversation. Our guests share stories about how competition has benefited local businesses and residents. They also describe infrastructure sign-up choices they have as property owners in a UTOPIA community and what it's like to have more than one or two ISPs at your feet. Now here are Chris, Mayor Cronin from Perry, and Roger Timmerman, executive director of UTOPIA.

Christopher Mitchell: Welcome to another episode of the Community Broadband Bits podcast. I'm Chris Mitchell. Today I'm speaking with two wonderful guests from the state of Utah. Roger Timmerman is the executive director of UTOPIA, the Utah Telecommunications Open Infrastructure Agency. Welcome to the show.

Roger Timmerman: Thank you. Thanks for having me on.

Christopher Mitchell: Perry City mayor, Karen Cronin. Welcome to the show.

Karen Cronin: Thank you. I'm delighted to be part of the conversation.

This spring, Lakeland city officials began contemplating the future of the city’s dark fiber network with an eye toward making a firm decision on whether or not to expand how they use it. Rather than pursue a municipal Internet network, Commissioners recently decided to seek out private sector partners to improve local connectivity.

Too Much For Lakeland?

Kudos to Christopher Guinn of the Ledger for very thorough reporting on the issue. According to his article, the city will release a Request for Proposals (RFP) for a solution that provides Gigabit (1,000 Megabits per second) connectivity to replace the current speeds in Lakeland. Cable serves the community now with maximum speeds of 150 Megabits per second (Mbps) download and about 10 Mbps upload.

In addition to the difficulty of establishing an Internet access utility, City Commissioners appeared intimidated by incumbents:

“I look at us trying to develop and design a fiber-to-the-home (network), the marketing, the technical support and all that, and going up against current providers, and I don’t see it,” Commissioner Don Selvage said.

Pilot Won't Fly

One of the options the Commission considered was a pilot project in a limited area, but that idea didn’t catch on either. Commissioner Justin Troller advocated for the pilot project:

“I think we should have a test area. If that’s something that costs we can say we tried it, we invested in it, it didn’t work and we’re moving on and finding a private partner,” Troller said.

He added: “I’m not against going out and seeing what the private sector will offer us. I’m saying how do we know we can’t do it if we don’t do it?”

While a number of Commissioners agreed that high-quality Internet access is critical for both economic development and the residents’ quality of life, fear of facing off against incumbent Charter overcame any vision of how a municipal network could benefit Lakeland:

The city of Santa Cruz seemed well on their way to a productive partnership with Cruzio as the two entities hammered out an agreement for a Fiber-to-the-Home (FTTH) citywide open access network. We recently learned that both parties have stepped back from the partnership, leaving the multimillion-dollar vision in a dark limbo.

The Plan

The $45 million infrastructure was to be owned by the city of Santa Cruz and Cruzio would operate it while also offering high-quality Internet access to the community. For the first ten years, Cruzio was to have an exclusive contract after which the network would become open access. There are approximately 62,000 people living in the community situated near Silicon Valley and this project was one of the larger public-private partnerships (P3).

In July, Cruzio announced that it would begin deploying fiber in one of the city’s downtown neighborhoods by Thanksgiving, ahead of any agreement to use city-owned fiber. The deployment will bring FTTH to approximately 1,000 homes; Cruzio’s plan is self-funded.

Now What?

There is nothing that prevents the two parties from picking up where they left off and reaching an agreement some time in the future, but they would need to rebuild trust. Sadly, they lost over a year as the two parties negotiated while residents and businesses across the city happily anticipated better Internet access.

These events remind us that P3s are fragile unions that are the apex of many interlocking pieces. Like a house of cards, when one segment falls, the entire structure can come tumbling down. As more local communities consider P3s to bring high-quality Internet access to residents, businesses, and local government, they need to stay realistic, consider the long term, and keep risk in their sights.