Fibrant Signs Up 3,000th Customer, Increases Top Speed to Gig With No Rate Hike

Salisbury's Fibrant network recently signed on its 3,000th customer, reports WCNC from Charlotte. The publicly owned network also recently increased speeds for residential customers with no price hikes, reports BBP Mag. Households that were signed up for symmetrical 100 Mbps service for $105 per month will now have gigabit service for the same rate.

BBP Mag spoke with Dale Gibson, one of Fibrant's first gigabit customers:

“Generally when an Internet service provider gives a speed, it represents bandwidth, or a theoretical 'best effort' speed, not the 'throughput' or actual speed. My speed tests are consistently above 900 Mbps.” A network professional for over 20 years, Gibson added that typically even in the best test conditions, it is more common to see numbers in the 800s and, “Fibrant should be very proud of that 900 number.”

Other speed hikes include:

20/20 Mbps for $45 per month raised to 50/50 Mbps

30/30 Mbps for $65 per month raised to 75/75 Mbps

50/50 Mbps for $85 per month raised to 100/100 Mbps

The network has also revamped its video packages to include more channels, new HD options, and remote DVR. For a complete overview of Fibrant's new packages, visit their pricing page.

Utopia at a Crossroads: Part 2

This is the second of a three part series, in which we examine the current state of the UTOPIA network, how it got there, and the choices it faces going forward. Part I can be read here and Part III here.

With the status quo untenable, no easy exit strategy, and political opposition mounting, UTOPIA appeared besieged in early 2013. Then along came Macquarie, which started studying the network and putting together a proposal for a partnership. The full Milestone 1 report from Macquarie is here,  but in case you aren’t prepared to read 100 pages the broad outlines are as follows:

  • Macquarie will invest $300 million of its own capital to aggressively finish the network build out in 30 months, finally reaching every address in every participating city without a connection fee (UTOPIA had been charging residents in some areas who wanted service around $3,000 to make the expensive last mile connections to individual addresses).
  • Macquarie would be responsible for network maintenance and periodic upgrades, as well as meeting performance benchmarks. Cost overruns in any of these areas would be paid by Macquarie.
  • Sharing of network revenue (from charging ISPs for transport) between Macquarie and UTOPIA, which could be used to pay down the existing bond debt.
  • At the end of a 30 year period of operations run by the public-private partnership, the network would revert fully to public ownership.
  • All homes would be eligible to receive "free" basic service, with 3 mbps download/upload speeds and a 20GB monthly data cap. For all other services, businesses and homes could choose from any of the 8 ISPs currently operating on UTOPIA, all of which offer affordable gigabit speeds. With a larger, complete network, it is likely that UTOPIA would attract new service providers as well.
  • Imposition of a monthly $18-20 utility fee, assessed to every address in the UTOPIA area over the next 30 years, regardless of whether or not they are network customers. This is why we put the "free" basic service in quotations. The utility fee would be structured with a 50% discount for apartments or other multiple-unit addresses, a 100% premium for businesses, and an option for each city to offer a hardship waiver for the indigent or discount for seniors.

In sum, this is a huge infusion of capital from a private company that could remove the risks associated with running, maintaining, and upgrading the network from the member cities, while potentially offering them a source of revenue to pay down the existing bonds. It also offers universal basic internet access, and the chance for everyone to purchase high speeds and premium services (voice and video) in a truly competitive market running on state-of-the-art infrastructure. The downside, of course, is the monthly utility fee, which is already proving contentious, as well as ceding control of the network to Macquarie for 30 years.
   
In the third and final article on this Macquarie series, we’ll look at the political implications and weigh the costs and benefits of the utility fee compared to what these cities are already paying.

Vote Expected Today on Blackburn Amendment Targeting Munis; Call D.C. Now!

Last night, GOP Representative Marsha Blackburn, introduced an amendment intended to destroy local authority for telecommunications investment by severely limiting FCC funding. The amendment, introduced during debate on H.R. 5016, targets 20 states, many with state-erected barriers already in place and/or municipal networks already serving local communities.

The vote was postponed but is expected today (Wednesday) at approximately 2:30 p.m. ET. Now is the time to call the D.C. office of your Representative and tell him or her to vote NO on this amendment. If your Rep has a telecom staffer, ask to speak to him or her first.

The text of the amendment is as follows:

AMENDMENT TO H.R. 5016, AS REPORTED OFFERED BY MRS. BLACKBURN OF TENNESSEE

SEC. ll. None of the funds made available in this Act to the Federal Communications Commission may be used, with respect to the States of Alabama, Arkansas, California, Colorado, Florida, Louisiana, Michigan, Minnesota, Missouri, Nebraska, Nevada, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin, to prevent such States from implementing their own State laws with respect to the provision of broadband Internet access service (as defined in section 8.11 of title 47, Code of Federal Regulations) by the State or a municipality or other political subdivision of the State. 

Multichannel News reports that New York DFLer Jose Serrano reacted the way we hope all Members will when it is time for the vote:

Wheeler has argued that those laws were the result of incumbent broadband providers using their lobbying muscle--he used to be one of those himself as president of the National Cable & Telecommunications Association--to try to block competition.

Rep. Jose Serrano (D-N.Y.), who rose in opposition to the amendment, agreed with Wheeler, saying that the issue is about allowing cities to operate without cable company lobbyists stopping them.   He said the amendment was an attack on individual rights of citizens speaking through their local leaders. "This is to stop states...from choking grassroots competition," he said.

Representative Mike Doyle (D-PA), who opposes the amendment, sent out a statement to his House colleagues when it became clear Blackburn would introduce the amendment (emphasis Doyle's).

Municipal broadband offers a genuine opportunity to inject real competition into the broadband marketplace and gives communities an innovative set of tools that they can use to solve their own problems.  Local communities should have the opportunity to decide for themselves how to invest in their own infrastructure, including the option of working with willing incumbent carriers, creating incentives for private sector development, entering into creative public-private partnerships, or even building their own networks, if necessary or appropriate.…

I urge you to VOTE NO on the Blackburn Amendment.

Local communities should retain the right to decide how to meet their connectivity needs whether through publicly owned infrastructure or through the private market. Rep Blackburn and those that support this amendment do not trust local communities to make the best choices for themselves. The FCC wants to ensure state legislatures do not impose their will as influenced by the telecommunications lobby. Call your Rep!

Davenport, Iowa, Releases RFP for Feasibility Study

Davenport recently issued an RFP, hoping to hire a vendor to complete a feasibility study. The community wants to learn more about connectivity options that build on its current fiber assets.

According to a May 2014 Government Technology article by Colin Wood, the city has installed fiber throughout the community over the past decade. CIO Rob Henry told Wood:

“For years, residents and businesses have been asking us to do this,” Henry said. “We always knew we were going to get to this point.”

Henry goes on to note that current services from incumbents in Davenport are not sufficient for economic development. The first step will be to connect businesses then follow with fiber to each premise.

Davenport's population is approximately 103,000. During the 70s and 80s, manufacturing was the predominent industry but today tech firms are moving into the area. It is considered part of the Quad Cities region, midway between Chicago and Des Moines from east to west and the Twin Cities and St. Louis from north to south.

According to the article, government facilities began using fiber first, with schools, hospitals, and parks following. The network saves Davenport $400,000 per year because the city serves its own telecommunications needs rather than buying service from a provider.

Wood reported that the city has spoken to CenturyLink and Mediacom; Chris told GovTech:

It’s good that Davenport is trying to cooperate with local Internet service providers (ISP), Mitchell said, but it’s unlikely to produce much substance because, in some cases, ISPs will attempt to starve the municipality for customers. “Every local government at first tries to work with incumbent providers,” said Mitchell, adding that, “my thinking is the city is not going to get a whole lot out of trying to work with them.”

The feasibility study will include several components, including a business case needs analysis, an evaluation of Davenport's current fiber optic capabilities, and recommendations. Bids are due in mid-July; the RFP is available online [PDF].

National Coalition Opposes Anti-Muni D.C. Legislation; Time to Call Your Rep!

The National League of Cities (NLC), National Association of Counties (NACo), and National Association of Telecommunications Officers and Advisors (NATOA) joined together this morning to send a letter to Congress expressing their opposition to anti-muni legislation being discussed in the House.

As we reported yesterday, it is imperative that concerned constituents speak out against two anticipated amendments that can stifle local investment or end local telecommunications authority. The amendments are expected within the next few days, so we need to act now.

Appropriations bill H.R. 5016, introduced on July 2nd, provides funding for financial services and general government, including the FCC. H.R. 5016 will be the vehicle to force through language to further restrict community broadband networks.

The amendment most damaging to local telecommunications authority is expected to come from Rep. Marsha Blackburn (R-TN). The amendment's purpose is to remove authority from the FCC to preempt state laws preventing local broadband infrastructure investment. By restricting the FCC's use of its funding, the legislation will choke the agency's ability to explore its plan to influence anti-muni state barriers so local communities can decide their own fates.

As the NLC, NACo, and NATOA write in their letter to Congress:

The National League of Cities (NLC), the National Association of Counties (NACo), and the National Association of Telecommunications Officers and Advisors (NATOA) strongly urges you to oppose any amendment to HR 5016 that would hamstring the Federal Communications Commission (FCC) from taking any action on – indeed, even discussing – the issue of state laws that prohibit or restrict public and public/private broadband projects. It is clear that such laws harm both the public and private sectors, stifle economic growth, prevent the creation or retention of thousands of jobs, and hamper work force development.

...

The private sector alone cannot enable the United States to take full advantage of the opportunities that advanced communications networks can create in virtually every area of life. As a result, federal, state, and local efforts are taking place across the Nation to deploy both private and public broadband infrastructure to stimulate and support economic development and job creation, especially in economically distressed areas. 

State barriers to public broadband are counterproductive to the achievement of these goals. Efforts to strip funding from the FCC to even discuss this issue, let alone take action, are misplaced and wrong. Please oppose any amendment to HR 5016 or any other measure that could significantly impair community broadband deployments or public/private partnerships.

Contact your Representative's D.C. office today and tell them to vote NO on any H.R. 5016 amendment that negatively impacts community broadband, restricts the FCC, or impairs local authority over telecommunications decisions.

UPDATE: The Coaltion for Local Internet Choice (CLIC) also released a letter to Congress today. From CLIC's letter:

As Congress and the Commission have often recognized, ensuring that all Americans have reasonable and timely access to advanced telecommunications capabilities, particularly in rural and other high-cost areas, is “the great infrastructure challenge of our time.” Toward this end, Congress has assigned the Commission a central role in defining the relevant terms and standards and in identifying and removing barriers to broadband investment and competition. While preemption of State barriers to broadband investment and competition should be used rarely, in only the clearest of cases, it should not be ruled out categorically in all cases, as the Blackburn amendment would do.

At this critical time in our country’s history, we should not preclude or inhibit any potentially successful strategy that will enable our communities and America as a whole to thrive in the emerging knowledge-based global economy. Nor can we afford to take off the table any approach that may be necessary in certain cases to remove barriers to broadband investment and competition.

Read both letters below.

Holly Springs Finds Savings with Muni Fiber - Community Broadband Bits Episode 107

Holly Springs, a town of about 25,000 in the Triangle region of North Carolina, has built its own network to connect community anchor institutions and has an interest in using it to spur economic development and other community benefits but a 2011 law pushed by Time Warner Cable makes some of that more difficult.

City IT Director Jeff Wilson joined me for episode 107 of the Community Broadband Bits podcast. We discussed why they decided to build a municipal network and how they have just finished the actual build.

We also discuss the savings they anticpate from owning the network and how local residents were hopeful that the network could be expanded to connect homes and businesses before learning that state law restricted them from doing that.

Read our additional coverage of Holly Springs.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 13 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Call to Action: Tell Your D.C. Officials to Vote NO!

H.R. 4752 from Rep Latta (R-OH) will be brought up in the House, likely as an appropriations rider, some time within the next few days. In the past several months, the municipal network movement has made great strides. If passed, this bill's content can be a significant setback. We encourage you to call the D.C. office of your elected officials and tell them to vote NO on H.R. 4752, NO on any rider based on H.R. 4752's language, and NO on any amendment that restricts FCC authority.

Be very specific when it comes to municipal networks - local governments should be the ones to decide whether a network makes sense. These amendments are designed to strip the power from the FCC that would allow it to ensure local governments can make this decision.

H.R. 4752's language would prevent the FCC from regulating Internet service providers under Title II. There is also some indication that the House will consider an amendment on municipal broadband; constituents need to stop the rider and the amendment from moving forward. 

This bill was introduced months ago. According to OpenSecrets.org, its Republican sponsor has received more than $320,000 in campaign contributions from the communications sector since 2007. 

The Free Press has also spoken out against this bill, which would help destroy network neutrality and this lethal amendment.

Get the word out to your communities ASAP! Call your Rep's D.C. office and urge him or her to vote NO on this bill or on any similar rider and NO on any amendment restricting FCC authority. As you know, if the FCC is limited in this way, its authority to take other meaningful action to support municipal networks will be compromised.

When you call your Representative's D.C. office, ask first to speak to the staffer in charge of telecom. If you live in a community where you have benefitted from a municipal network or in a community that is exploring the option, share your experiences. Let them know that you not want Congress limiting FCC authority in this way.

UTOPIA at a Crossroads: Part 1

This is the first of a three part series, in which we examine the current state of the UTOPIA network, how it got there, and the choices it faces going forward.

At the end of a month of public meetings, hearings, and city council votes, just over half of the cities that make up UTOPIA have chosen to take the next step in their negotiations with the Macquarie Group. The massive Australian investment bank has put forward an offer to become a partner in the troubled network in exchange for a $300 million capital infusion to finish the long-stalled FTTH buildout.

Of the 11 member cities that have debt obligations for the network, six (comprising about 60% of all 163,000 addresses in the UTOPIA area) have voted to proceed to “Milestone 2,” which means digging into details and starting serious negotiations on the terms of a potential public-private partnership. Macquarie outlined their opening proposal in their Milestone 1 report in April.

Macquarie has about $145 billion in assets globally, and is no stranger to large scale infrastructure projects. Their Infrastructure and Real Assets division has stakes in Mexican real estate, Taiwanese broadband networks, Kenyan wind power, and a New Jersey toll bridge, to name just a few. For their UTOPIA investment, they would be working with Alcatel Lucent and Fujitsu, highly capable international IT companies. So there’s some serious corporate firepower across the negotiating table from the UTOPIA cities - and in this case, that’s not actually a bad thing.

Jesse Harris of FreeUTOPIA has an excellent overview of the whole messy history of UTOPIA and the limited options the network’s member cities now face. While the network offers true competition, low prices, and gigabit speeds through an open access FTTH network, UTOPIA has faced a slew of setbacks over the years, from incumbent lawsuits and astroturf activism to mismanagement, poor expansion planning, loan disputes, and restrictive state laws. As a result, the network remains unfinished, with just over 60,000 of 163,000 addresses having been passed by fiber, while member cities are on the hook for about $500 million in long term debt and interest payments to go with annual operating losses in the realm of $2.4 million.

The UTOPIA cities have some choices to make. They could simply shut the network down, eliminating the operating costs - but also depriving the area of its best chance at ubiquitous and affordable high speed internet access, losing the revenue from current customers, and doing nothing about the long term debt. This would essentially guarantee that the cities would continue to make bond payments for the next 30 years while receiving nothing. It would also leave the many local businesses  that depend on the network’s reliable speed high and dry.

Or the cities could choose to sell the network, as nearby Provo did with its fiber network after state restrictions requiring an infeasible business model took their toll. Any proceeds from a UTOPIA sale would be dwarfed by the outstanding bonds, however, leaving the cities with most of the debt left to pay and little to show for it, handing over control of a local infrastructure asset to the highest bidder. This did not work out especially well in Provo, where the public sector held onto the network’s debt while a private provider (Broadweave) struggled to operate it. They have had better luck with a subsequent sale to Google, but still retain the public debt without community ownership. This is a fate UTOPIA cities should avoid if at all possible.

Stay tuned for the rest of this series. In Part 2, we’ll break down the main points of the preliminary Macquarie proposal. In Part 3 we’ll weigh the pros and cons, showing why this deal has the potential to make the best of a difficult situation for UTOPIA-area residents and businesses.

Chattanooga Will Ask FCC to Preempt State Barriers in Tennessee

Since January, when the DC Circuit Court of Appeals suggested the FCC has the authority to preempt state anti-muni laws, local communities have publicly supported the notion. Chattanooga's Electric Power Board (EPB) will join those communities when it petitions the FCC to preempt similar laws in Tennessee, reports The Center for Public Integrity.

Danna Bailey, vice president of corporate communication at EPB recently told The Center:

“We continue to receive requests for broadband service from nearby communities to serve them,” Bailey said. “We believe cities and counties should have the right to choose the infrastructure they need to support their economies.”

Chattanooga, one of the publicly owned networks that have inspired FCC Chairman Tom Wheeler, has proved itself as a strong economic development tool. According to the article:

A day after his meeting with Berke, Wheeler wrote in his blog, “I believe that it is in the best interests of consumers and competition that the FCC exercises its power to pre-empt state laws that ban or restrict competition from community broadband. Given the opportunity, we will do so.”

A number of other communities with municipal networks, or in the process of deploying them, have passed Resolutions that support the FCC:

In addition to communities with firsthand experience, the American Public Power Association (APPA) also passed a Resolution in June, urging Congress, the FCC, and the Obama Administration to unequivocally support:

…the ability of local governments, including public power utilities, to provide advanced communications services that meet essential community needs and promote economic development and regional and global competitiveness. 

The U.S. Conference of Mayors passed a similar Resolution at its annual meeting in June, which read:

BE IT FURTHER RESOLVED, that the US Conference of Mayors recommends that the FCC preempt state barriers to municipal broadband service as a significant limitation to competition in the provision of Internet access.

Soon after, a coalition from the National Association of Telecommunications Officers and Advisors (NATOA), the National League of Cities (NLC), and the National Association of Counties (NACo) joined together for a letter of support to Chairman Wheeler:

The importance of Internet choice at the local level has never been more important. In many places in the U.S, locally-driven projects—including innovative partnerships with private sector companies—have demonstrated that local creativity and local authority is a viable means by which new next-generation broadband infrastructure can emerge.

Fortunately, support is also coming from DC. In late June, a collection of Senate and House Members penned a letter to Chairman Wheeler, asking him to take action and begin the process. In a statement fully supported by the Institute for Local Self-Reliance, the Members wrote:

Communities are often best suited to decide for themselves if they want to invest in their own infrastructure and to choose the approach that will work best for them. In fact, it was the intent behind the Telecommunications Act of 1996 to eliminate barriers to entry into the broadband market and promote competition in order to stimulate more innovation and consumer choice. We urge you and your colleagues to utilize the full arsenal of tools Congress has enacted to promote competitive broadband service to ensure America’s communities obtain a 21st century infrastructure to succeed in today’s fiercely competitive global economy.

Local communities, regional coalitions, and federal leadership all recognize the importance of local Internet choice. The country is ready for the next step, Chairman Wheeler. We support you!

Santa Fe Ready to Improve Local Internet Choice

The City of Santa Fe is taking first steps to improve the community's Internet choice, quality, and availability. Recently, the City announced that it has chosen a partner for a middle mile investment and will move forward with the $1 million fiber deployment project.

CenturyLink and Comcast serve Santa Fe, home to approximately 70,000 people. Residents and businesses both complain about slow speeds and relatively high costs. Residents pay $50 per month for average speeds of 5 Mbps while nearby Albuquerque pays the same price for 10 Mbps, according to the Santa Fe New Mexican.

CenturyLink owns the sole fiber hut connecting the community with the Internet. The company also owns the line bringing access to the web to downtown, giving it control over data transmittal in the city. A city press release, reprinted at SantaFe.com in May 2013 described the problem:

Every home and most businesses already have two physical routes to the Internet: A telephone line and a television cable...But in spite of this abundance of pathways, there is a crucial missing link in the infrastructure, an enduring legacy of the former telephone monopoly. This missing link spans from the central telephone office to a location about two miles away where several fiber optic cables emerge from the ground after traversing many miles of road, railroad and countryside from remote junctions across the state. Absent this two-mile link, local providers have only one way to connect to the outside world, and must pay a steep toll on the data transmitted over it. 

The City recently announced that it would work with local ISP Cyber Mesa to build an independent line from downtown to CenturyLink's fiber hut. The City hopes the line will introduce much needed competition, encouraging better service and prices.

According to the plan, Cyber Mesa will run the City's fiber service for four years; after that other bidders can apply to manage the network. Three other companies bid on the project, including CenturyLink who told the City "not to waste money on the project." CenturyLink opposes the plan, of course, and Chris spoke with the New Mexican about what to expect from the incumbents:

Mitchell also warned that the city should not expect competition to flourish on its own, saying Internet giants such as Comcast and Century Link “have a lot of power to run competitors out of business.”

Mitchell warned that Comcast and Century Link have a history of opposing public Internet infrastructure projects through legislation, and that the city should expect resistance if it continues building such projects.

“They’re very happy with the market the way it is,” Mitchell said.

Citylink Logo

The project details have raised a few eyebrows from industry experts. While the plan to build another line will provide another path to the Internet, one of the bidders, CityLink Fiber, questions the wisdom of the plan:

[CityLink Owner John] Brown said that in his bid he proposed creating a 7-mile loop that would have accomplished the city’s goals and provided additional coverage and redundancy. The city didn’t bite, saying that he couldn’t complete the project within the funding limits, he said.

Brown said he could, but the city remained unconvinced and instead opted for Cyber Mesa.

He also questioned the need for running cable through Century Link’s central exchange, saying it was unnecessary and expensive.

We have been impressed with John Brown's work and are inclined to believe him. But regardless of the details, local businesses are hungry for better service. A local Web design firm owner, Damien Taggart, notes that large data files can take hours to transmit.

Smaller ISPs are also looking forward to an option beyond CenturyLink. Joel Yelich, president of a local wireless provider told the New Mexican:

“I certainly hope that is successful in some way,” Yelich said. “The more competition, the better.”