As we reported in March, the Chelan County, Washington PUD was seeking input from the customer-owners of their open access fiber optic network to decide what the future would hold. The PUD had considered three options and presented them to the public:

    •    sell the network
    •    maintain ownership of the network, but improve operations and curb expansion until it is self-sustaining over time
    •    continue expanding the network, paying for the expansion by increasing electric rates

After requesting public comment through outreach and community meetings to present information and hear public opinion, the Chelan PUD General Manager John Janney released the recommendation to the PUD Commissioners at an April 9th special meeting. From the press release:

After feedback from customer-owners and extensive analysis around potential alternatives, costs and benefits, General Manager John Janney recommended Monday night that Chelan County PUD continue operating its fiber-optic network and take steps to put it on more stable financial footing before considering any further expansion to unserved areas. The network now offers access to about 70 percent of the county.

On April 16th, the Commission endorsed the recommendation. From the press release:

"It's a way forward," said Commissioner Dennis Bolz in speaking in support of the resolution that outlines steps to be taken to move the fiber system toward being self-sustaining and ending its reliance on dollars from the PUD's overall electrical system. He likened it to commencement that many seniors regard as the end to their high school days but which is really the beginning of their adult lives.

Washington's Olympic Peninsula is one step closer to being laced in a new fiber-optic network. The first link in the new Peninsula-wide broadband project is between Blyn and Sequim and will serve the Jamestown S'Klallam tribe from its new Blyn library to a local medical clinic located in Jamestown. Also benefiting from the new expansion will be the Sequim Library.  Thirty people, including state and federal elected officials, a representative from the Jamestown S'Klallam tribe, NoaNet, and local public safety professionals, recently gathered together at the Sequim Library to celebrate the new expansion, as reported by Jeff Chew in the Peninsula Daily News.

Clallum County PUD's network is part of NoaNet, an open access wholesale only network, and now has 24 miles of fiber-optic cables between Port Angeles and Sequim. From Chew's artcle:

“High-speed broadband is the most exciting thing that has happened in law enforcement in my career,” Port Angeles Police Chief Terry Gallagher told about 30 at the Sequim Library.

Gallagher said broadband Internet will allow officers to work faster and more efficiently, enabling them to multitask in their patrol cars, such as checking a motorist's identification while checking on a city webcam and communicating all at once.

The construction of the project is overseen by NoaNet. The network is planned to run from Brinnon to Port Ludlow and  Port Townsend and then across the Olympic Peninsula to Neah Bay to Forks. This portion of the project, from Blyn to Sequim, was chosen first  because it was part of the first round of funding and because it is less complex than other legs of the network.

In past reporting, we have briefly discussed Pend Orielle PUD’s efforts at filling the broadband service gap in rural areas. People living in rural areas, while possibly needing connectivity more than urbanites, are often left to fend for themselves. In this case, the community was largely passed over by the private sector but took up the challenge to do it themselves. In addition to implementing a pilot program in 2011, they attempted to restore their right to make their own decisions about broadband.

In a commentary posted on the Pend Orielle PUD website, Commissioner Dan Peterson describes the agency’s commitment to their first priority, providing reliable electricity, and how expansion of their fiber network will improve the process of delivery. Yes, there are risks of building a community fiber-optic network, notes Peterson, but is has been done, done well, and will enhance the ability to fulfill that first priority. Additionally, the Commissioner notes that broadband access is something the people of Pend Orielle County need to stay competitive and gain any possible edge:

It increases educational opportunities, economic vitality, property values, and jobs. Our rural county will leap forward in this information age with state-of-the-art infrastructure. Without this gift, such progress is otherwise impossible.

The Pend Orielle PUD received stimulus funds, which it used to expand the network, but are considering the fiscal future of the network and current and future customers. Peterson and the PUD sought legislative changes, SB 6675, that would give the PUD the authority to offer retail services on its network, currently a no-no. In his commentary, Peterson attempted to allay the fears of those he correctly anticipated would be opposed to such authority – the potential competition.

Chelan PUD is asking the people of their rural community whether they “love” or “just like” their beleaguered and pioneering fiber-optic network. At a series of public input meetings to be held across the county over the next month, residents will have the chance to hear opinions from business, economic, and marketing consultants, as well as express their devotion, or lack thereof, to the network. The future of the network is in question and the Chelan PUD needs to hear from its owners.

At the first meeting, on February 28^th, most residents of Chelan County said that having a locally owned and controlled network available to them was a priority. Consultants hired by the PUD said the fiber-optic network could be self-sustaining in the long term with changes in business planning. Recommendations included writing off internal debt, more aggressive marketing efforts to existing and ready locations, and collaborating with ISPs to obtain more subscribers in the open access network. Yes, the PUD Fiber-optic network has had its problems, including high installation costs due to the landscape and lack of conduit, changes in PUD leadership, and incompatible existing residential technology. Nevertheless, experts and the local community appear patient and cautiously optimistic. More meetings will follow; the next is scheduled for March 19^th.

Providers lease from the PUD (state law prohibits them from competing directly with retail services) and proceeds from wholesale electricity sales have allowed the network to continue expanding. As we have reported in the past, the PUD is an open access network and while it has not been able to pay down its debt, and has had some difficulties, the PUD network has recognized value in the community, as evidenced at this first meeting. It certainly beats not having access to the essential infrastructure necessary to succeed in the modern economy.

Erik Poulsen, government relations director at Washington Public Utility District Association, said PUDs have used the wholesale authority they were granted in 2000, building 4,500 miles of fiber-optic cable, investing $300 million in infrastructure and joining with 150 retail providers.

Broadband infrastructure is this century’s interstate highway system: a public investment in an infrastructure that will rapidly connect Washington’s citizens statewide, nationally, and internationally; fuelling growth, competition, and innovation. Like highway access, the path to universal broadband access varies with the needs of the local community. Our primary goal is to expand broadband access. We believe allowing municipalities and PUDs to provide broadband services addresses the most significant hurdles to broadband expansion: the high cost of infrastructure. In conjunction with a state USF, PUDs and municipalities are well placed to address the needs of their consumers. A secondary goal is to promote a competitive marketplace.

Comcast is slated to pay $78,000 in one-time fees to cover part of the cable's installation, plus $4,057 in annual leasing fees, according to city documents.

The project will make highspeed Internet available to approximately 3,200 households, 360 business, and 24 community anchor institutions such as schools, libraries, and health care facilities. Residents and business owners will have the opportunity to subscribe to a variety of highspeed Internet services through local internet service providers.

Seattle Mayor Mike McGinn today laid out a proposal to encourage broadband Internet in a four-block area in Pioneer Square, allowing telecom and cable companies to lease some of the conduit that the city is now placing under First Avenue South. McGinn said it is a small, incremental step in a larger plan to bring high-speed Internet to the parts of the city that need it, tapping into some 500 miles of “dark fiber” that’s not being utilized.

Jeff Strain, the founder of Undead Labs, a 20-person game developer in Pioneer Square, said that fiber-optic cable would dramatically improve his company’s ability to create cutting-edge games. “What we are able to get in Pioneer Square is about half the speed of what you’d be able to get in your home,” said Strain. “So, it is not really suitable for the sort of media rich businesses that we are trying to build down here.”

We’ve heard from Pioneer Square businesses that internet speeds there are just not what a 21st century economy needs. Jeff Strain, who founded a game development company called Undead Labs, worries that he might have to move his company from Pioneer Square if the “barely adequate” internet service isn’t improved.