A March article in Broadband Properties Magazine spotlights three communities around the country that are making progress toward creating municipal fiber networks. The City of Centennial, Colorado announced that they have completed a feasibility study and a Master Plan detailing the city’s plans to develop a network. Additionally, the Cities of Indianola, Iowa and Rancho Cucamonga, California announced that they have begun studying the feasibility of starting their own municipal fiber networks. 

Indianola, Iowa

Indianola, Iowa is a city of about 15,000 just 20 miles south of Des Moines. As we wrote a few years ago, Indianola currently owns an open access Fiber-to-the Premise (FTTP) network which provides Gigabit speed Internet access, plus TV, and phone service to most businesses and select residents in Indianola. The study they recently commissioned will explore the feasibility of using this existing network for constructing a FTTP network to the entire community. 

Indianola built its existing fiber network, which they launched in 2012, out of frustration as CenturyLink refused requests from the community to upgrade their DSL network and the incumbent Mediacom began overcharging for their Internet services. Today, Indianola Municipal Utilities is the infrastructure owner and a wholesale provider of this fiber network while Mahaska Communication Group, an Iowa-based Internet Service Provider (ISP), performs the operations and maintenance services for the network. 

Rancho Cucamonga, California

The City of Rancho Cucamonga, California recently asked a private consulting firm to perform a study to determine the feasibility of creating a fiber optic network. City officials see a municipal fiber network in this city of just over 170,000 as a potential driver of economic development. The city is located about 45 miles east of Los Angeles.

Ammon now has judicial confirmation to move ahead on their Fiber-to-the-Home (FTTH) project.

As we reported earlier this year, Ammon's Fiber Optic Department, led by IT Director Bruce Patterson, is on the verge of commencing the next phase of its incremental network deployment. Bruce explained to Chris in Episode #173 of the Community Broadband Bits podcast, how the city will create a utility and residents who choose to participate will pay to have the network connected to their homes. The first area where FTTH will be deployed includes approximately 300 properties.

Innovative Participation Model

As Bruce put it:

"…[I]t seems logical that since fiber to your home raises your property value that we'd find some way to bond for that and put the payment for that bond as on assessment on your property tax because it does actually increase your property value so that's our goal. We do that with what they call a local improvement district."

Ammon intends to issue bonds that will then be paid with funds from assessments levied on the properties of those who wish to connect to the network. If a property owner wants to connect to the network, they will also become a "Utility Member" and will pay a monthly fee to use the service. Ammon's FTTH network will be open access; the city will not provide retail services but will maintain and operate the infrastructure. Residents will subscribe to the services offered by ISPs that operate over the network.

Ammon also intends to offer a low-cost option that will allow Utility Members to access basic functions, such as checking email, messaging, and file transfers without the need to subscribe to an ISP. Their plan will allow people in the community who cannot afford more advanced services to still have access to basic Internet tools.

In order to determine which neighborhoods want fiber, Ammon asks residents to sign up so they know where to aim the next build.

Sweet Validation

As Burlington, Vermont, searches for a buyer for Burlington Telecom, the local residents and business owners continue to remain engaged in the future of their beloved Fiber-to-the-Home (FTTH) network. Most recently, they made it clear that their first priority is finding a local company to own and operate the fiber network.

VT Digger reported that, according to a survey conducted by the BT Board of Advisors:

Several residents have said they would like to see Burlington Telecom sold to a locally owned co-operative and that their greatest concern is the utility being sold to one of its larger competitors such as Comcast, AT&T or FairPoint.

From the report:

Though the City is precluded by the terms of its settlement Agreement with Citibank from continuing to own the Asset, a carried equity interest is permitted. It is important that all ownership options be explored and considered in light of the legal requirements and the City’s goals for BT. However, the BTAB [Burlington Telecom Advisory Board] agrees with the vast majority of interested participants in this process that the sale of BT to one of its existing, national competitors would likely not be in the overall best interests of the City. 

At a recent meeting, David Provost, chair of the advisory board said, “The best option from our perspective is finding a buyer with ties to the local community that will allow the city to have a minority stake in Burlington Telecom."

A Troubled Past, An Uncertain Future

After years of cover-ups by the city's past leadership, CitiBank eventually sued Burlington for $33 million. The parties settled and, as part of the settlement, Burlington transferred ownership to Blue Water LLC, a company formed by Burlington businessman Trey Pecor. In exchange, Blue Water provided $6 million in bridge financing to allow the city to settle the lawsuit with Citibank. The city is still leasing the network temporarily but the ultimate goal is to find a partner to purchase the network. 

Welcome back to Sun Prairie, Wisconsin. This town has brought to light the shocking stories of slack service from incumbent providers, the complicated decisions of community representatives, and the hopeful beginning of a fiber-to-the-home (FTTH) network. 

The City Council has just approved $16,000 to hire an engineering consultant for the estimated $27-35 million citywide plan. 

In the Pilot Project, So Much Demand!

In July 2015, City Council approved the $624,000 plan for the pilot project, but several factors brought the actual cost up to about $653,000. The pilot project area included the neighborhood Smith's Crossing, the Main Street Corridor, and the TIF District 9 area. 

Sun Prairie Utilities first slated the project for completion in early December, but that underwent several delays. For instance, an over-booked contractor started on the project a month later than expected. Meanwhile, rocky soil conditions and high-demand slowed the pace of construction while raising costs. The Sun Prairie Utilities Manager Rick Wicklund will present the final costs for the pilot project this month. 

The original budget had assumed a 30 percent take-rate that would see a positive cash flow in three years. In actuality, 54 percent of households in the pilot project area are requesting the services.

Forty-three percent have requested the 100 Megabits per second (Mbps) for $49.98 each month while 11 percent want the higher-speed service of 250 Mbps for $69.98 each month. The capital expenditure of these unexpected last mile connections brought the cost up, but the extra revenue from these connections will certainly help offset those costs. 

Pilot Project Teaches Lessons

This week in Waverly, Iowa, the local electric utility, Waverly Utilities, hooked up the first customers for its new Fiber-to-the-Home (FTTH) network. It’s been a long time coming for the town of 10,000 people. 

16 Years Ago: A Vision

The community first had the idea back in 2000 when they voted to form a municipal telecommunications utility after incumbent providers proved a letdown.  Reacting to the vote, those incumbent providers improved their networks a bit, so Waverly Utilities decided to hold off on building a fiber network. 

In 2013, residents and businesses found that the incumbent providers were again not providing necessary connectivity. Taking matters into their own hands, they pushed to create a new, publicly owned network. By 2015, the community had secured revenue bonds for the $12 million project.

Today: A Reality

Waverly Utilities already has 1,100 customers signed up to receive the service, and more homes and businesses will be connected over the next three months. By July 1st, Waverly Utilities’ network will be fully operational, delivering the next-generation connectivity that residents have long been waiting for.

For more about Waverly's project, take a few minutes to listen to Chris interview Mike Litterer, who was serving as Interim General Manager of Waverly Light and Power in 2013. He talked with Chris during Episode #53 of the Community Broadband Bits podcast.

Once again, local communities in Colorado chose to shout out to leaders at the Capitol and tell them, "We reclaim local telecommunications authority!"

Nine more towns in the Centennial State voted on Tuesday to opt out of 2005's SB 152. Here are the unofficial results from local communities that can't be any more direct at telling state leaders to let them chart their own connectivity destiny:

Akron, population 1,700 and located in the center of the state, passed its ballot measure with 92 percent of votes cast supporting the opt-out.

Buena Vista, also near Colorado's heartland, chose to approve to reclaim local authority when 77 percent of those casting votes chose to opt out. There are approximately 2,600 people in the town located at the foot of the Collegiate Peaks in the Rockies. Here is Buena Vista's sample ballot.

The town of Fruita, home to approximately 12,600 people, approved the measure to reclaim local authority with 86 percent of votes cast. Now, when they celebrate the Mike the Headless Chicken Festival, the Fruitans will have even more to cheer.

Orchard City, another western community, approved their ballot measure when 84 percent of voters deciding the issue chose to opt out. There are approximately 3,100 people here and a local cooperative, the Delta-Montrose Electric Association (DMEA) has started Phase I of  its Fiber-to-the-Home (FTTH) network in the region. According to an August article in the Delta County Independent, Delta County Economic Development (DCED) has encouraged local towns, including Orchard City, to ask voters to opt out of SB 152. With the restriction removed, local towns can now collaborate with providers like DMEA.

In the Village of Yellow Springs, Ohio, Springs-Net has created quite a stir among the 3,500 people. This grassroots group of villagers is advocating for a municipal network. Last year, they hosted a community Fiber Forum featuring our own Chris Mitchell. Now, they’re continuing the push for better home Internet access.

Springs-Net released a white paper on a possible municipal fiber network, bringing the results to the Village Council on February 16th. Although cautious of leaping into a large project, the Village Council recognized the benefits a network could have for the town and agreed to meet with the group in April to discuss next steps to improving connectivity.

Working From Home? Yellow Springs Says "Yes"

At the February 16th Village Council meeting, Scott Fife represented Springs-Net to provide an overview of the findings in the white paper. A retired Director of Information Technology at Centerville City Schools, Fife concentrated on information most relevant to the needs of the Yellow Springs community. 

According to Fife, over the last 15 years, the local business community has grown to include over 195 home-based businesses, an increase of 35%. In addition, the number of home-based engineering or scientific workers has increased 69% during the same period. Fiber connectivity could boost these existing businesses while attracting new ventures to the Village. 

A pilot project in the City of Holland, Michigan is now delivering gigabit speed Internet service via a dark fiber network built by the city more than two decades ago; three commercial buildings are connected. The project, led by the Holland Board of Public Works (HBPW), is the first phase in an effort to develop a municipally owned and operated fiber network.

Holland is home to about 33,500 people and situated on the shores of Lake Michigan. The community is known for its roots in Dutch culture and is a popular summer tourist destination. Windmills and tulips dot the landscape.

Daniel Morrison, the president of a software company in Holland and a member of a local public interest group called Holland Fiber, recognizes that businesses need fast, affordable, reliable connectivity:

“Our whole business is online,” he told the Holland Sentinel newspaper. “We’re working with clients all over the world and we want to be able to work as quickly as possible.”

Morrison’s company is a pilot tester. After the testing program began in January, Morrison Tweeted out a screen grab showing his Internet speeds:

Pretty darn fast.

Toward a Municipal Network?

Pilot testing is set to last for three months to allow Holland’s Board of Public Works (BPW) to test out network technologies and solicit feedback from testers. All of the pilot testers are getting free fiber Internet service during the testing period.

Holland's BPW plans to apply their findings from the test toward a business plan for a municipal network for the entire service area. They will also use the business plan to support an application to the State of Michigan to become an authorized Internet Service Provider. BPW officials expect state regulators to respond to their application by the fall of 2016.

In late February, private Internet service provider, Countrywide Broadband (CWB), announced that it and Seaport Capital together would acquire assets belonging to iTV-3, Inc. In addition to fiber networks developed in Peoria, Bartonville, and Bloomington, iTV-3 is deeply involved in bringing connectivity to the Urbana-Champaign community. The company leases fiber on the UC2B network, has expanded the network by deploying its own fiber off the UC2B fiber rings, and promised to expand the Fiber-to-the-Home (FTTH) network across the community.

In the agreement with iTV-3, the UC2B nonprofit has a right of first refusal to purchase any local iTV-3 assets deployed if iTV-3 is purchased by another company. In short, UC2B has 60 days from the date of the CWB and iTV-3 purchase agreement to decide if they want to purchase the iTV-3 fiber expansions. If the nonprofit decides not to purchase the fiber, it will continue to own the UC2B rings and CWB will own the expansion fiber.

It was only a few weeks ago that we wrote about the upcoming sale of Bristol's BVU Optinet. It is important for communities to recognize that as these networks are built, they are targets for purchase and consolidation. Fiber networks are a hot commodity and local governments may be tempted to plug short term financial problems with a sale that has implications for decades – long after those elected officials have left office. 

They Chose iTV-3

The open access (FTTH) network, one of the few last-mile projects awarded funding during the first round of the American Recovery and Reinvestment Act (ARRA), cost $26 million to deploy. The network offered affordable access to residents - as low as $19.99 per month. At first, UC2B operated the network, but the organization later sought a private partner to manage and provide services. In 2014, UC2B chose iTV-3, Inc. as a partner to offer triple-play and to expand the network.