The community of Sebewaing, located in the "thumb" of Michigan is moving closer to its own FTTH network, which will be the first new municipal FTTH project in the state.

Because of a state law impinging on local authority in Michigan, local governments must first issue an RFP and can build a telecommunications network themselves if they receive fewer than three qualified bids. If the community builds the network themselves, it probably must adhere to the RFP as if it were a private entity. This approach ignores the fact that a community operates a network with different incentives than a private company, so the two are not interchangeable. 

We wanted to know more about this effort, so we contacted Melanie McCoy, Superintendent of the municipal utility Sebewaing Light and Water. We discovered that the town of 1,700 residents, known for its beet farming, has several factors going for it. 

Communities with their own utilities already in place have personnel, equipment, and expertise which saves money and time. And because they already own the utility poles, they are often able to get started quickly rather than waiting for other firms to do "make-ready," which can take months as wires are shifted on poles. Sebewaing has a municipal fiber loop currently in place - another plus. McCoy tells us the fiber was installed in 2001 and 2002 at a cost of about $50,000.

Private Internet choices were limited to dial-up for about $20 per month or a T1 connection for around $1,000 to $1,500 per month. At the time, Sebewaing Light and Water shared a T1 connection with local businesses.

Residents, business and government needed better connectivity and community leaders also realized the need to boost economic development. Sebewaing Light and Water leadership also wanted to increase efficiency with a SCADA system and considered a telecommunications utility a good investment. And looking toward the future, they knew installation of the fiber would position them favorabley for future investment.