Baratunde Thurston hosted Bruce Patterson on the most recent episode of his podcast How To Citizen. The episode is a deep dive into the consequences of a lack of competition in Internet access, and how the city of Ammon on stepped up to meet the challenge. Baratunde talks with Technology Director Bruce Patterson about how he got into this space, how the project got started, and the wealth of positive outcomes it has help drive for the community.

Listen here, then watch the video below on how the network is saving money, creating competition for broadband services, and creating powerful new public safety applications.

As interest in publicly owned broadband network infrastructure increases, local communities seek out new ways to fund municipal networks. Revenue bonds, interdepartmental loans, and avoided costs have been the three most common methods for funding Internet network infrastructure, but local leaders are finding creative approaches to get the job done. The Creative Funding Sources For Fiber Infrastructure fact sheet presents new approaches, pros and cons, and provides examples for further study.

Download the fact sheet.

New Approach to an Ongoing Challenge

Communities that need better connectivity must consider numerous factors when fiber optic network infrastructure is on the table. In addition to the type of model that’s most appropriate, decisions include vendor selection, and the extent of the network footprint. A critical element to every community network are the choice of funding mechanisms local leaders choose to see the project from idea to implementation.

Communities such as Ammon, Idaho, and Kitsap County in Washington are using fresh ideas to fund their infrastructure development. In this fact sheet we describe the way these new mechanisms work and lay out some benefits along with some potentially negative implications. It’s important that communities take a frank look at all the possible repercussions as they move forward. 

This fact sheet will help your own creative funding ideas flow as you look for ways to finance your community’s high-quality Internet access project.

Download the fact sheet.

The city of Ammon, Idaho, has used its open access publicly owned network to create an environment that encourages competition for residents and businesses. In addition to giving them control over which services they use and which companies they patronize, the city is doing its best to share information. In this video, the Ammon Fiber Optic Utility explains information financing for those who decide to connect to the network.

Ammon is using a Local Improvement District (LID) approach to connect premises to the infrastructure. The city determines the boundaries of where the project will occur and property owners have the opportunity at the beginning of the process to pay for connecting to the network by attaching the cost over 20 years to their property. If property owners don’t take advantage of the opportunity during this window of time and decide later to connect, they must pay the estimated $3,000 - $5,000 out of pocket.

As the video explains, connecting one’s property to the network raises its value and makes it easier to sell. It also points out that the cost of connecting stays with the property, so if a homeowner moves before the 20-year period is over, the new owners continue the payments for connecting. The video also explains an estimated monthly cost breakdown for hooking up to Ammon’s network. 

Keeping the community informed about their options keeps residents and businesses engaged in the process and aware of developments related to their network. Check out this short video about the LID #2 options and learn more from this report from Harvard University’s Digital Access to Scholarship at Harvard (DASH).

This is the transcript for episode 263 of the Community Broadband Bits Podcast. Anne Fifield and Nick Nevins discuss how Eugene, Oregon, uses a dark fiber network to encourage economic development. Listen to this show here.

Anne Fifield: I think we're going to start running out of office space downtown that we've had firms grow. We've had firms come just to locate here. They're here because of the fiber.

Lisa Gonzalez: This is episode 263 of the Community Broadband Bits Podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. This week, Chris talks with two folks from Eugene, Oregon where the community is working on a dark fiber project to improve connectivity to the downtown area. He's joined by Anne Fifield who works in economic development and Nick Nevins from the Eugene Water and Electric Board, also known as EWEB. In this conversation, we learn about the collaboration between the two entities, including how the infrastructure is already improving Eugene's downtown, how they're funding the project, and more about the decision to expand existing fiber in Eugene. Before we start the interview, we want to remind you that this commercial-free podcast isn't free to produce. Please take a moment to contribute at ILSR.org. If you're already contributing, thank you for playing a part and keeping our podcast going. Now, here's Christopher with Anne Fifield and Nick Nevins from Eugene.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits Podcast. I'm Chris Mitchell with the Institute for Local Self-Reliance. Today, I'm talking with Anne Fifield, Economic Development Planner for the city of Eugene in Oregon. Welcome to the show.

Anne Fifield: Hi, Chris.

Christopher Mitchell: We also have Nick Nevins on the line and he is the Engineering Technician for Eugene Water and Electric Board. Welcome to the show.

Nick Nevins: Thanks for having me, Chris.

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.”

On August 1st, the National Association of Telecommunications Officers and Advisors (NATOA) recognized Ammon, Idaho’s promise at the 2016 Community Broadband Awards. NATOA named Ammon’s open access network the 2016 Community Broadband Project of the Year. 

Innovative Ideas in Idaho

It's a great recognition for the innovative little city in Idaho. They have been incrementally building an open access Fiber-to-the-Home (FTTH) network for years. In 2015, they won an award for designing an ultra high-speed application to use the network to coordinate responses to school shootings. And earlier this year, they approved an ingenious funding method: a Local Improvement District (LID). Residents will have the choice of opting into the costs and benefits of the fiber project or opting out completely. 

A New Model

It's all about people's choice; Ammon’s open access model itself empowers community members. Instead of making frustrating phone calls with large corporations, residents can change their Internet Service Provider (ISP) simply and quickly from a sign-up portal. The infrastructure remains the same, and the providers focus on offering the best customer service. Ammon’s open access model is the virtual end of cable monopolies.

For more details, listen to Ammon’s Technology Director Bruce Patterson explain the project in Community Broadband Bits Podcast episodes 86, 173, and 207. For even more information, see our in-depth coverage on Ammon.