A group of municipal leaders and their private sector small ISP partners submitted an ex parte filing with the FCC today stating that they see no reason to fear Title II reclassification of Internet access. The statement, signed by a variety of towns and providers from different areas of the country is reproduced in full:

Dear Chairman Wheeler,

As a group of local governments and small ISPs that have been working to expand the highest quality Internet access to our communities, we commend you for your efforts to improve Internet access across the country. We are committed to a free and open Internet without blocking, throttling, or discriminating by ISPs.

As local governments and small ISPs, we wanted to ensure you are aware that not all local governments and ISPs think alike on matters like reclassification. For instance, on July 18, 2014, the mayors of New York City; Portland, Oregon; and San Francisco called on you to issue the strongest possible rules to guarantee Net Neutrality. Each of these communities is also taking steps to expand and improve high quality Internet access to their businesses and residents.

Our approaches vary but are already resulting in the highest level of service available because we are committed to expanding high quality Internet access to supercharge local economies and improve quality of life. We have no interest in simply replicating older triple play model approaches. We want to build the infrastructure of the future and we see nothing in the proposed Title II reclassification of Internet access that would hinder our ability to do that. As Sonic CEO Dane Jasper has strongly argued, ISPs that don’t want to interfere with their subscribers’ traffic should expect a light regulatory touch.

We thank you for your leadership during this difficult period of transition. We understand that many of our colleagues have trouble trusting the FCC given a history that has, in many cases, ignored the challenges small entities face in this industry. But whether it has been increasing the speed definition of broadband, or calling for the removal of barriers to community networks, we have been impressed with your willingness to take on powerful interest groups to ensure the Internet remains a vibrant, open platform.

We look forward to working with you to ensure that future rules recognize the unique challenges of small providers and innovative approaches to expanding access.

Sincerely,

After several years of considering options for a municipal network, the community of Grover Beach, California, is improving local connectivity options through a collaboration with private partner Digital West. 

According to the San Luis Obispo Tribune, the City struck a deal last fall with the local firm that will provide gigabit connectivity to local business customers. A city staff report states that Grover Beach will install and own a series of conduit that will house fiber owned by Digital West. 

The company, a data storage and web hosting firm located in nearby San Luis Obispo, will manage the fiber network. Digital West will lease conduit space from the city for 5.1% of its gross revenue from its operation of the private portion of the system. The initial lease is for a 10-year term. The company will also transfer ownership of some of the fiber to the city for public purposes. San Luis Obispo (SLO) County also wants to connect its facilities in the area and will contribute to the cost of the project. It appears as though SLO County will use the fiber provided to Grover Beach.

Grover Beach will contribute $500,000; SLO County will contribute $268,000; Digital West will contribute $159,000 to the total cost of $927,000 of the project. The parties agree that the city's contribution will be capped at $500,000. The staff report recommends an interdepartmental loan to finance the city's portion of the conduit installation.

Digital West has been an instrumental player in the city's quest for improved connectivity for several years. The company provides Internet service in SLO County and manages a private network offering connectivity, colocation, and cloud services to commercial clients. 

Grover Beach is also the location of the Pacific Crossing trans-Pacific fiber cable, connecting to Shima, Japan. In 2009, Digital West began working with Grover Beach to find ways to take advantage of the pipe. The city and Digital West have sence developed a Technology Master Plan and an Implementation Plan.

Time Warner Cable recently fought to prevent a collaborative project in Maine from receiving $125,000 in state broadband funding, reported the Bangor Daily News. 

We reported in December that Old Town, Orono, the University of Maine, and GWI had been awarded ConnectME funds. The collaborators earmarked the funding for a stretch of about 4 miles of fiber which could serve about 320 subscribers and would ultimately be integrated into a much larger network for businesses and residents. The network would connect to Maine's Three Ring Binder network.

Old Town and Orono want to establish gigabit connectivity to a nearby industrial area to transform it into a technology park for economic development purposes. Several businesses, including a health clinic that, have expressed interest in setting up shop in the planned development.

Old Town and Orono formed OTO Fiber, an independent entity to have authority to design, install, maintain, and manage an open access network. In typical fashion, TWC took action prevent local citizens and businesses from ever capitalizing on a gigabit, rather than work with the municipalities to deliver TWC services over the publicly owned infrastructure.

The ConnectME Authority voted in TWC's favor, based on the arguments as presented in an earlier Daily News article:

The company argues that the agency only has the ability to give grants in areas it deems “underserved” or “unserved,” and that projects getting grants should overlap with less than 20 percent of the customers of an existing provider.

As of January 2015, more communities than ever before have realized the value of publicly owned broadband infrastructure.

In order to introduce our updated Community Networks Map to advocates of better broadband, policy makers, and community leaders, we created the Community Networks Map fact sheet.

This is a great resource for policy makers, advocates, and community leaders who want a visul tool to share the truth – that a large number of successful community broadband networks are spread across the country, serving constituents, encouraging economic development, and saving public dollars.

Download the PDF to learn more and visit the online interactive map to obtain detailed information and links to specific community stories on the map.

Green Isle and nine other communities have reaffirmed their commitment to the RS Fiber Cooperative, reports the Belle Plain Herald. The project began in 2010 as a collaboration between a number of local county and municipal government entities in south central Minnesota. Local residents rallied behind the project, which was designed to connect both towns and surrounding farms. 

Unfortunately, the project faced difficulties due to incumbent intimidation and the high cost of deployment in such a large geographic area. Sibley County officials chose to back out of the project, requiring a business plan reboot. Locals, recognizing the critical need for better connectivity chose to instead form the RS Fiber Cooperative.

The Herald reports that in its first 2015 City Council meeting, Green Isle voted 3 - 1 in favor of a resolution stating continued support to the project. Similar resolutions have passed in Winthrop, Gibbon, Fairfax, Lafayette, Gaylord, Stewart, New Auburn and Brownton. 

Henderson and Arlington, located in Sibley County, have opted to not participate in the coop. 

Coop Directors endorsed an updated business plan in November, reported Prairie Business Magazine. The project will bring better connectivity options to approximately 6,200 customers in Sibley County, parts of Renville County, and portions of Nicollet and McLeod Counties. The revised business plan, scaled back from the original plan to bring fiber to every property in Sibley and Renville Counties, reduces project costs by more than 30 percent.

Participating communities will collectively issue $13.7 million in general obligation bonds. Local investors, bank loans, and other financing will provide the remaining $42 million. The project is scheduled for completion in 2018.

Phil Keithahn, RS Fiber Coop financial planner, told KEYC Mankato that the network will have triple-play capabilities, bringing Internet, phone, and video to remote rural areas. Community leaders are motivated by the need to improve connectivity for agriculture, tele-medicine, and education.:

Time Warner Cable began lobbying Maine legislators at the dawn of the legislative session, reports the Maine Center for Public Interest Reporting. In January, the cable gargantuan hosted a "Winter Policy Conference" for state lawmakers at the exclusive Inn by the Sea resort. As Maine state leaders contemplate how they can boost connectivity, the incumbents are fueling up the anti-muni misinformation machine.

The Center did not have exact numbers of legislators who chose to accept the invitation to stay overnight, attend the opening dinner, or sit in on the "information sessions" which were all paid for by TWC. Reports range from "about a dozen" attendees at the evening dinner to "30 or 35" attending the information sessions the next day.

Naturally, the event raised red flags:

“If we want good public policy, there’s reason for all of us to be worried,” said utilities expert Gordon Weil, the state’s first Public Advocate, who represented the interests of ratepayers before regulators. Such treatment of legislators is “obviously intended to persuade them by more than the validity of the arguments; it’s intended to persuade by the reception they’re given.”

The Center obtained copies of the information packet from the conference, which included a survey that had legislators questioning its objectivity:

“We see lots of surveys as policymakers and we have to be smart enough to look at what questions are asked,” said [DFL Rep. Sarah] Gideon.

Gideon was bothered by survey questions such as, “Should taxpayer-supported debt be used to build government-owned and operated broadband networks that sell broadband services to the public…where no broadband service currently exists…(or) broadband services are already available?”

“Nobody’s going to say ‘Yes, I want my state to incur debt,’” said Gideon.

For the facts on all things UTOPIA, we turn to Jesse Harris at FreeUTOPIA.org. In his latest post, he provides an excellent bullet list of the key factors in Macquarie's Milestone 2 proposal. An excerpt From his post:

The final cost per address is estimated at $22.60 per month. Macquarie estimates that re-working the deal to account for five cities bowing out trimmed the cost by $8.57 per month.

The revenue split is much more generous than I expected, allowing the cities to keep 75% of wholesale revenue after the first $2M per year. It’s expected to completely cover the debt service by 2021 with just a 24% take rate for premium services.

The basic level service has also been improved. Instead of 3M/3M service being included at no extra cost, it’s been bumped to 5M/5M. This matches Google Fiber speeds on the free tier. The data cap stays put at 20GB per month.

Almost all of the network revenues are being driven by Veracity, XMission, and SumoFiber. Other ISPs are very small by comparison.

The majority of currently connected users are in opt-out cities. This only reinforced that the votes there were “we got ours” selfishness.

Jesse has also managed to obtain a draft copy of the Milestone Two Report and has it posted for your review at his blog.

Recently, the network settled a long running dispute with the Rural Utility Service (RUS), reported the Standard Examiner. UTOPIA was awarded a $10 million settlement in a lawsuit filed in September 2011.

A November Salt Lake Tribune article reported that the RUS encouraged UTOPIA to seek federal loans in 2004 but took 19 months to approve the first payment, generating unanticipated expenses. Later, the agency withdrew promised funding with no formal reason. 

We are well into the new year; a look back at 2014 can be instructive if we strive to learn from our mistakes. A December article from the Washington post Wonkblog listed "11 of the worst policy ideas of 2014" and, of course, state barriers restricting local telecommunications authority was on the list:

Fed up with limited choices, high prices and shoddy service, many cities want to turn their back on large Internet providers by building their own municipal broadband service. Standing in their way are state legislatures, lobbyists for the telecom industry and even federal lawmakers who believe states should have control over what projects their cities invest in.

Fortunately, this is something that we can change - let's educate elected officials to ensure there are no new barriers and existing barriers are repealed!