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Austin, Minnesota Releases Fiber Network Feasibility Study Results

Austin has been thinking about getting a gig for a while now. The city of 25,000 near Minnesota’s southern border had campaigned to be picked for the initial Google Fiber deployment, but was disappointed when Google selected Kansas City instead in 2011. As with some other cities around the country, however, the high profile Google competition got Austin thinking about the benefits of a gigabit fiber network, and how they might bring it to their residents. Last month, a committee tasked with bringing such a network to every premises in Austin released a feasibility study they commissioned, with generally favorable results.    

The study recommended further exploration of a universal fiber optic network, but found the idea to be generally feasible. The cost of such a network was estimated at $35 million, and would cover the entire footprint of the Austin Public School District, which extends to rural addresses well beyond the city limits. The study recommended universal fiber-to-the-premises (FTTP) for many of the same reasons we’ve been talking about it for years: its nearly unlimited data capacity and speed, future-proof and damage-resistant properties, and reliability.  

The study was commissioned by the Community Wide Technology committee of the Vision2020 campaign, a broader planning movement to revitalize the greater Austin area. The Technology committee has since launched the GigAustin website and campaign to advocate for a FTTP network.

The GigAustin team has representation from the Austin Public School District, the city public power utility, private companies and foundations, and other potential anchor institutions. Hormel, the food products giant headquartered in Austin (and the people who brought you the SPAM Museum), is a major employer in the area and their presence on the GigAustin team and support of the feasibility study is notable.   

This is no slam dunk, however. The study did not recommend a specific funding source, and there appears to be little appetite for significant public expenditure

Committee members say the project could be funded in large part by state and federal grants and don’t currently plan to seek local tax dollars to pay for Gig Austin.

...The FCC set $100 million aside for broadband projects on July 11. In addition, Minnesota created the Office of Broadband Development in 2013 and budgeted $20 million to it earlier this year.

Securing grant funding from outside sources is nice, but not always possible - particularly when much of the community already has DSL and cable available. Given that the Austin network alone is projected to cost $35 million, it is easy to see how quickly $20 million or even $100 million could dry up on a statewide or federal scale. There are also hopes in Austin for securing grants from private nonprofits, which also seems like a long shot to make a significant dent in project costs. It is worth noting, however, that the funding for the feasibility study itself came from private sources: the Blandin Foundation, Hormel Foundation, and Ag Star Financial. 

There also does not appear to be any consensus yet on an ownership model, with both public and private options on the table. The public power utility, while participating in the GigAustin campaign, does not appear interested in ownership:

Austin Utilities General Manager Mark Nibaur said the company will likely partner with Vision 2020 and may contribute dollars to Gig Austin, but the utilities board may decide not to operate the fiber network.

“I don’t think there’s any interest in ownership,” he said.

While leaving the governance and ownership structures as an open question, the study did note that private providers were unlikely to build such a FTTP network any time in the foreseeable future (a finding that will surprise exactly no one). 

The next step in the process is a survey of Austin area residents to determine the level of interest in ultra high speed connectivity. The feasibility study estimated a take rate of 40-50% would be necessary for the network to be sustainable. The survey got under way in July, and should be completed in August or September.

Muni Fiber in Rural Massachusetts - Community Broadband Bits Podcast 113

Though much of western Massachusetts has poor access to the Internet, the town of Leverett is in the midst of fiber build that will offer a gigabit to anyone who wants it. Peter d'Errico, on the town Select Board, has been part of the project from the start and Chairs the Broadband Committee. He joins us for Episode 113 of the Community Broadband Bits podcast.

He and I discuss the great need for the project and inaccurate broadband maps that overstate availablility in the region. We discuss the role of the "municipal light plant" law that gave them the necessary authority to invest in the fiber.

But more interestingly, we talk about how they have structured the financing and prices for subscribers. The network will be repaid both with the revenues from subscribers and a modest bump in the property tax. The kicker is that many households will see their taxes increase a little but the amount they spend on telecom will decrease substantially, resulting in more money in their pockets each month.

We have written about Leverett often over the years, the archive is here. Read the Leverett FAQ here.

You can read a transcript of this discussion here, courtesy of Jeff Hoel.

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 18 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."

Spencer Municipal Utilities Expands Upgrade to Fiber in Iowa

Spencer Municipal Utilities (SMU) in Iowa is expanding an upgrade project to bring fiber to approximately 2,000 additional premises. A little over a year ago, we reported on the switch from coax cable to fiber for 700 municipal network customers with no rate increase. According to the Spencer Daily Reporter, the original project is almost completed; the expanded upgrade will cost approximately $4.5 million.

Amanda Gloyd, marketing and community relations manager, told the Daily Reporter:

Since SMU first began offering Internet service to customers the amount used by customers has increased and we expect to see that continue. For example, the average peak usage from customers in the fall of 2010 was 125MB and today it averages around 800MB with maximums over 1,200 MB. The project to convert the whole town of Spencer will take several years and we continue to develop plans for future projects.

In April, the SMU Board of trustees approved a modest rate increase for video and Internet access to help defray increased costs for video content and increased demand on the system. The last time rates went up for video service was early 2013; residential Internet access rates have remained the same since November 2011.

New rates went into effect on June 1. Internet access rates range from $20 per month for 1 Mbps/256 Kbps to $225 per month for 100 Mbps/10 Mbps. Basic level video service begins at $14 per month; "Basic Plus" is $50.75 per month. Digital service and a range of channel choices are available as add-ons.

SMU also provides voice and partners with T-Mobile to provide wireless phone service in the community. The network began serving customers in 2000.

Spencer, population 11,300, is located in the northwest section of the state. In the Community Broadband Bits podcast episode #13, Chris spoke with Curtis Dean of the Iowa Association of Municipal Utilities (IAMU). Dean shared a story about Hansen's Clothing, a local upscale clothier in Spencer. Thanks to the presence of the SMU network, Hansen's was able to expand its sales to the online marketplace. Hansen's was struggling until it obtained the ability to reach clientele in New York and Los Angeles. The fresh business allowed Hansen's to flourish.

Gigabit Network Expansion Moves Forward in Longmont, Colorado

Construction on Longmont's fiber expansion will begin by August 13th, reports the Times-Call. TCS Communications of Englewood, Colorado recently signed an agreement with Longmont Power & Communications (LPC) to deploy the gigabit network for $20,095,022. Completion is scheduled for 2017.

A July 14th article on the project noted that LPC and TCS will complete construction in six phases. A substantial number of potential subscribers will have access early in the process:

The first phase will be done in south-central Longmont, the area nearest to LPC itself. The work will then proceed into central Longmont by early 2015. At that pace, 11,147 of the utility's 39,061 customers would be able to get fiber service within a year of the start of construction.

Readers will recall that last November the people of Longmont voted to approve a $45.3 million bond issue to bring the network to every premise in the city. Chris spoke with Vince Jordan, one of LPC's champions, in episode #106 of the Community Broadband Bits podcast.

Clearly, LPC is carrying on the customer service priority established by Jordan and the LPC crew:

"We set a high bar with regards to quality of work, customer service and timeline," LPC general manager Tom Roiniotis said in a release Monday evening. "We want to make sure it is done efficiently; we want to make sure it is done right."

LPC provides updates and a map of the project at its website

Hudson Issues RFP for Broadband Needs Assessment, Business Plan

Hudson, Ohio, located in the Akron area, recently released a Request For Proposals (RFP) for a Broadband Needs Assessment and Broadband Business Plan. The community of 22,000 hopes to connect all municipal facilities, connect business parks, and eventually implement an FTTH network.

A May 4 Hub Times article covered an April city council discussion to expand existing fiber resources throughout the city. Internet Service Manager Bill Hillbish described a plan to connect traffic, security cameras, and possibly provide Internet access to other entities in Hudson. The original plan was to spend approximately $47,000 for fiber and hardware to connect remaining municipal facilities with Hudson Public Power managing the expansion.

At that meeting, the City Council also discussed using the network to connect local businesses and, eventually, residents. Apparently, local businesses are not happy with the incumbent provider: 

Some Council members wanted the work completed sooner than the five-year forecast by Hilbish. Hanink suggested 2016 instead of 2019.

"The business community is screaming for Internet connectivity and speed," said Council President Hal DeSaussure. "We can use it as an economic development and business retention tool."

Economic Development Director Chuck Wiedie said businesses were frustrated with Windstar, which was slow and lacked customer service.

"Our businesses need the Internet," Wiedie said.

At a later City Council meeting, Members delved deeper into the possibility of using fiber for more than an I-Net. From a June 22nd Hub Times article:

Interim City Manager Scott Schroyer June 10 asked for direction for the broadband infrastructure work. The city wants to circle the city with fiber to provide communications for all its city facilities. Council members suggested offering the broadband service to businesses and residents.

Broadband would provide a competitive advantage for economic development for attracting businesses, said Council member Dennis Hanink.

"I'd like to see us try to get to the business parks within a couple years," Hanink said.

At that meeting, Schroyer said the City would seek assistance from a consultant to create a financial and business plan. On July 9th, Hudson released its RFP.

For the past decade, Hudson has incrementally expanded a fiber network to connect major buildings and facilities (see page 3 of the RFP for a map of existing fiber). Some of the facilities include public safety buildings, town hall, schools, and utility buildings. The proposed project will connect remaining electric substations and the City Cemetery.

Through the RFP, Hudson hopes to determine the best way to complete its network for municipal purposes and explore a possible open access network. Hudson expects infrastructure recommendations, business plan possibilities, and needs assessment review. Proposals are due August 15.

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.

Early Lessons from Longmont - Community Broadband Bits Podcast 106

Longmont is about to break ground on the citywide FTTH gigabit network but it is already offering services to local businesses and a few neighborhoods that started as pilot projects. Vince Jordan, previously a guest two years ago, is back to update us on their progress.

Until recently, Vince was the Telecom Manager for Longmont Power and Communications in Colorado. He has decided to return to his entrepreneurial roots now that the utility is moving forward with the citywide project. But he has such a great voice and presence that we wanted to bring him back to share some stories.

We talk about Longmont's progress and how they dealt with a miscalculation in costs that forced them to slightly modify prices for local businesses shortly after launching the service. And finally, we discuss the $50/month gigabit service and how Longmont has been able to drive the price so low.

You can read our full coverage of Longmont from this tag.

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 20 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."

Erwin, Tennessee Bringing Fiber to Businesses, Residents

Erwin, population 6,000, is planning a pilot project to bring fiber to downtown homes and businesses, reports local media. The project may be lit by November, serving approximately 1,200 premises.

According to the Johnson City Press, Erwin Utilities has already developed a plan to offer Internet and phone service:

The network would offer customers high-speed broadband Internet and telephone services. [Erwin Utilities General Manager Lee] Brown said the project would offer initial Internet of 100 Mbps with the future potential of providing up to 1 Gbps. Brown said a service such as the one Erwin Utilities intends to offer is typically only available in large metropolitan areas.

“Our beginning package is basically the equivalent of what the fastest speed available is currently,” he said.

Erwin Utilities will use the infrastructure for electric system demand response, meter reading, outage reporting, improved communications and operations of electric, wastewater and water equipment, and future load management. If customers are happy with the service in the pilot project area, Erwin Utilities hopes to deploy the technology throughout its entire service area.

Brown told the Press that the municipal utility began investigating the possibility of municipal broadband about 15 years ago, but until now the community could not afford the investment. Costs have gone down bringing the project to approximately $925,000.

The Erwin Utilities Board approved the plan but the Tennessee Comptroller needs to review it. Next the community will hold a public hearing then on to final approval by the Board of Mayor and Alderman.

Chanute City Commission Approves FTTH Plan

Chanute City Commission decided on June 9th to take the next step to bring ftth to the community; Commissioners voted unanimously to pursue and finalize funding to deploy a municipal network.

The City's current fiber network provides connectivity to schools, hospitals, electric utility and municipal facilities, the local college, and several businesses. Chanute has worked since 1984 to incrementally grow its network with no borrowing or bonding. Plans to expand the publicly owned infrastructure to every property on the electric grid began to take shape last year.

At a work session in May, Director of Utilities Larry Gates presented several possible scenarios, associated costs, and a variety of payback periods. The favored scenario includes Internet only from the City, with video and voice to be offered by a third party via the network. Residential symmetrical gigabit service will range from $40 - $50 depending on whether or not the subscriber lives in the city limits. Commercial service will be $75 per month. Advanced metering infrastructure will also be an integral part of the network.

The Commission authorized the pursuit of up to $14 million to get the project rolling.

Get a Gig in Oklahoma: Rural Cooperative Deploying FTTH in Northeast Corner of the State

The Northeast Oklahoma Electric Cooperative, serving a five county rural region, plans to begin offering gigabit service in its territory by the end of 2014. The cooperative has formed Bolt Fiber Optic Services to offer connectivity to approximately 32,000 homes and businesses.

According to Light Reading, the infrastructure is funded with a $90 million loan from the Rural Utilities Service. Sheila Allgood, manager of Bolt, notes that the entity is separate, but "profit or loss will go back to the co-op."  Bolt will offer triple-play packages with a third party contracted to offer the VoIP services.

The project also includes a data center, already under construction, that will house network equipment and provide collocation services.

From the cooperative's newsletter announcing the project in December 2013:

The initial phase of the project will deliver fiber in areas of the largest population density (14-20 homes per mile) with subsequent phases eventually working their way into more remote, outlying areas. “We anticipate that the first phase of the project should be available to roughly one-third of Northeast Oklahoma Electric Co- operative’s membership,” explained Due. “A significant number of businesses and community institutions in our area would also be connected during this phase.”

The cooperative lists monthly residential prices as 20 Mbps for $49.99 per month, 50 Mbps for $63.99 per month, 100 Mbps for $83.99 per month, and 1 Gbps for $249.99 per month. All speeds are symmetrical. Bolt is asking interested customers to sign up with a $100 installation fee.

Project completion is scheduled for April 2017.

The Cooperative has produced a short promotional video to get the word out:

 

Video: 
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