The following stories have been tagged FTTH ← Back to All Tags

Central Missouri Coop To Offer Gigabit, Upgrades Speeds With No Price Increase

Residential customers of Co-Mo Connect in Missouri will see a free upgrade this spring. In a December announcement, the cooperative stated it will also begin offering gigabit Internet service for $99.95 per month.

“There are no strings attached,” said Randy Klindt, Co-Mo Comm's general manager. “We’re doing this because we can, because the network has the capacity and we received a good deal on bandwidth. We’re passing those speeds and savings onto our subscribers.”

New residential service options:

  • 5 megabits per second for $39.95 a month; 
  • 35 mbps (currently 20 mbps) for $49.95 a month; 
  • 100 mbps (currently 50 mbps) for $59.95 a month;
  • 1 gbps (currently 100mbps) for $99.95 a month.

According to the announcement, small businesses will also receive speed increases with no increase in price. Klindt notes that Co-Mo prides itself on gimmick-free pricing:

“Nothing is going to decrease after six months or whatever the other companies do,” he said. “And subscribers don’t have to do anything to get the extra speed. If you’re on the 20, 50 or 100 megabit tier right now, we’re simply going to turn up your speed when this becomes available sometime this coming spring.”

We reported on Co-Mo in 2012, as the cooperative began expansion of services. At the time, Co-Mo had been passed over for American Recovery and Reinvestment Act (ARRA) funding. Coop members wanted to improve the broadband situation for better economic opportunity so Co-Mo pressed on without federal funding. The plan to bring FTTH to all 25,000 coop members has four phases with completion scheduled for 2016.

Auburn Essential Services; A Workhorse in Northeast Indiana Saves Jobs, Serves Public

In 1985, Auburn Electric became one of the first communities in the midwest to deploy fiber. At the time, the purpose was to improve electric and voice systems substation communications within the municipal utility. That investment laid the foundation for a municipal network that now encourages economic development and saves public dollars while enhancing services.

Auburn expanded its fiber network beyond electric systems in 1998. The utility began using the network to serve city and county government operations. It is not well known, but Auburn offered gigabit service to its public sector customers way back in 1998.

The benefits from the deployment prompted community leaders to develop an Information Technology Master Plan in 1998 that would answer the question of what other ways the fiber could serve the community? As part of the Master Plan, Auburn leaders collected information from other communities that were capitalizing on their own local fiber. While Auburn made no immediate plans, they kept an open mind, waiting until the time was right.

In 2004, Cooper Tire and Rubber (now Cooper Standard) was about to be sold from its parent company. The $1.6 billion auto component manufacturer needed a data center but bandwidth was insufficient and inconsistent in Auburn. Cooper considered leaving because the incumbents, Mediacom and AT&T, could not or would not provide the broadband capacity the company needed. If Cooper left town, an estimated $7 million in wages and benefits from 75 high-paying tech jobs would also leave. At the time, Auburn was home to 12,500 people.

County Courthouse in Auburn, Indiana

According to Schweitzer, the City tried to persuade the telephone company to find a solution with Cooper but the two could not reach an agreement. Rather than lose Cooper, the City of Auburn stepped in to fill the connectivity gap in 2005.

In a 2007 interview with Public Power magazine, Schweitzer noted advantages in Auburn that facilitated the project:

“We also had a major tier-one Internet provider with a point of presence in Auburn, so we had some primary pieces in place to affordably and quickly extend business-class Internet service to this customer. We were preparing for this growth, but the trigger was this company that was going to leave unless we could serve them,” Schweitzer said. 

Shortly after connecting Cooper Standard, Auburn began serving several other businesses. The success of the venture lead to a feasibility study which included a market survey. The results showed residential and commercial interest in a municipal network, encouraging Auburn Electric to ask the community for guidance on how to proceed. From the 2007 interview:

“Our town hall meetings were very open,” said Schweitzer. “This broadband effort is about our community, and our community has told us we need to pursue this important project. We have tried to do a thorough job of communicating with customers to determine their needs as we moved forward.”

In pursuing the high-speed broadband project, the city follows the same philosophy it has used for other city infrastructure projects, Schweitzer said.

“We have good communication with the community, as this is a grass roots effort, rather than a top-down approach,” Schweitzer said. “We are also doing due diligence in all new areas we encounter. We aren’t making any assumptions on this project. The only thing we would like to do differently is to move more quickly on the project, but we know our steady approach will serve us well.”

Auburn Electric, the owner of the network, operates and maintains the fiber infrastructure. The utility expanded the network incrementally to serve its core business. The network is approximately 205 miles and cost approximately $12 million for fiber and electronics. Auburn Electric uses the network for Advanced Metering, SCADA, and smart grid applications. Auburn Essential Services (AES) leases fiber from Auburn Electric to offer customers data, voice, and video services.

Auburn Essential Services Map

The electric utility created AES as a sub-department to operate the electronics that provide telecommunications services. In order to purchase the electronics to light up the network, AES borrowed $2.5 million from Auburn Electric via an interdepartmental loan in 2005. Within seven months, AES was cash flow positive.

By 2007, AES was also serving small business and residential Internet and phone needs. In 2012, the utility started offering television service. The network has passed approximately 6,500 properties after eight years of incremental expansion.

In a recent interview on the Broadband Bits podcast, Schweitzer told Chris Mitchell the network has helped keep local prices in check. Residential Internet prices vary from $22.95 (1.5 Mbps/512 Kbps) to $169.95 (55 Mbps/10 Mbps) per month. AES does not use pricing gimmicks, reinforcing the philosophy that every customer matters. From the podcast interview:

"We are not going out there trying to lure customers with the lowest price," says Schweitzer,"we going out there to serve the community with a healthy, sustainable, quality product."

AES kept the public informed of how the build was proceeding with interactive maps, available here. This kind of transparency is well in keeping with the traditional of community ownership of infrastructure.

LightTUBe Financially Secure in Tennessee

Tullahoma Utilities Board's triple-play FTTH LightTUBe, began serving Tullahoma in 2009. The fiber network utility is paying off its city bond debt on schedule reports the Tullahoma News.

The network's income during the first four months of fiscal year 2014 is a positive $58,939. General Manager Brian Skelton spoke with Chris Mitchell in July 2013 and expressed confidence that that network will continue to operate in the black. The News reported on our podcast interview with Skelton and provided some recent updates:

With an estimated potential customer base of 9,000 in the TUB service area, LightTUBe services 3,201 fiber customers. That number is slightly ahead of goal (3,186) and represents nearly 36 percent market penetration against primary competitor Charter Communications.

Tullahoma deployed its network to encourage economic development. In 2011, we reported on J2 Software Solutions. The company located its headquarters in Tullahoma because LightTUBe offered fast, reliable, affordable service. 

According to the News article, expenditures on Internet service remain consistent while subscriptions grow. The Tullahoma Utilities Board (TUB) only recently approved a $7 rate increase for video service due to an increase in the cost of television content. When content rates rose in the past, TUB chose to absorb the increase but the cost of content continues to increase for all providers. Since 2009, TUB increased Internet service speeds five times without increasing prices. From the article:

”LightTUBe is in a very comfortable position from a financial perspective. Our biggest concern at this point is the unreasonable price increases that we (and others in the video business) are seeing from many of our channel providers,” said Skelton.

That comfortable financial position appears to rest largely on the shoulders of LightTUBe’s Internet service.

While video and telephone services together generate enough income to offset the system’s net maintenance and depreciation costs, Internet services generate enough income to offset its additional customer service, sales, administration and debt costs.

Unlike the private providers it competes against, Tullahoma is limited in where it can offer service. State law prevents it from serving customers outside its electrical territory - something AT&T and Comcast lobbyists have preserved year after year by killing bills that would remove this damaging law. Across Tennessee, local businesses, residents, and anchor institutions are stuck with slower, less reliable connections despite desiring expansion from the nearby utility but they are denied.

Because Tennessee law prohibits municipal utilities from providing their fiber services outside of their electric service territory, LightTUBe cannot offer its 1G Internet to – for example – the Coffee County Joint Industrial Park, which is serviced by Duck River Electrical Membership Cooperative (DREMC). The joint park, located five miles northeast of Tullahoma and outside of TUB’s service area, has cable-based Internet service.

In Kansas, Chanute One Step Closer to FTTH

Chanute's City Commission voted on November 25th to move forward with plans for a FTTH network. The community of approximately 9,000 began installing fiber in 1984 for electric utility purposes. They have slowly expanded the network throughout the community. Chanute's fiber and wireless broadband utility now serves government, education, and several businesses. We documented their story in our case study, Chanute’s Gig: One Rural Kansas Community’s Tradition of Innovation Led to a Gigabit and Ubiquitous Wireless Coverage.

Beth Ringley from The Motive Group presented its feasibility study to the City Commission at the meeting. The proposal includes smart grid technology to support Automated Metering Infrastructure for the municipal electric, natural gas, and water utilities and enhanced triple-play service offerings. City leaders hope to eventually support multiple providers via the infrastructure.

The Motive Group predicts a 35% take rate with 5,000 premises passed. The estimated cost will be $19.5 million; revenue bonds would finance the deployment. Business models predict a positive cash flow after six years with capital costs paid off in approximately 20 years.

The City Commission voted unanimously to allow the City Manager to move forward by investigating financial options for the project and make recommendations for Commission approval. The City Manager will also proceed with negotiations with vendors needed to construct and manage the project. 

The City Commission meeting is available online. Discussion about the proposal begins approximately one hour into the meeting. You can also view slides of The Motive Group Presentation in the meeting documents.

Cedar Falls Shows Long Term Muni Network Success: Community Broadband Bits Episode #75

Cedar Falls Utilities operates one of the oldest community owned networks in the nation. It started as a cable network in the 90's, upgraded to FTTH recently, and this year began offering the first citywide gigabit service in Iowa. CFU Communication Sales Manager Kent Halder and Network Services Manager Rob Houlihan join me for Community Broadband Bits podcast 75.

We discuss why Cedar Falls Utilities decided to add cable to their lineup originally and how it has achieved the incrediblely high take rates it maintains.

We also discuss the importance of reliability for municipal network and why they decided to transition directly to a FTTH plant rather than just upgraded to DOCSIS 3 on their cable system. Finally, we discuss its expansion into the rural areas just outside of town.

Read all of our coverage of Cedar Falls on MuniNetworks.org.

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 Haggard Beat for the music, licensed using Creative Commons.

Danville Continues to Attract Jobs to Region After Building Fiber Network

Danville's open access network has fueled economic development in the Virginia community's resurgence after tobacco’s demise and job losses from a once thriving textile industry put a hurt on the local economy. Danville’s technological prowess is now attracting companies from China, in addition to other economic development gains we covered previously.

Jason Grey, nDanville’s Network Manager, told us that Zeyuan Flooring International, a Chinese wood floor manufacturer, is locating its first U.S. facility in Danville. Zeyuan CEO, Sindy Cui, said the company initially thought about locating in Los Angeles, but was eventually swayed by the hospitality and resources available in Danville. Zeyuan plans to invest $15-million in a 40,000 square foot manufacturing plant that will employ 100 people within three years.

Zeyuan is the second Chinese company to locate in Danville in the past year. Last September, Chinese furniture assembler GOK International announced it will invest $12.5-million to establish its U.S. headquarters and showroom in Danville. GOK International plans to employ 300 people within three years.

Not coincidentally, both companies are locating in Cane Creek Centre, one of Danville’s five industrial parks connected to nDanville’s fiber network. Serving businesses was a high priority in building the network. As the first fully automated open-access network in the country, nDanville passes more than 1,000 businesses including every parcel in each of the industrial parks. Many businesses take 100-Mbps fiber connections, some take advantage of 1-Gbps connections. 

These recent additions to Danville’s thriving commercial sector are just the latest in a steady string of economic development successes for the area that include the likes of Goodyear and IKEA. And it’s not just manufacturing. 

Danville is home to one of the first non-government sponsored next generation Cray supercomputers. The Cray XMT2 supercomputer is part of the Noblis Center for Applied High Performance Computing which is located in a former tobacco processing plant in Danville's River District. Noblis uses the computer to crunch data for clients in fields such as computational biology, DNA sequencing, air traffic management, fraud detection, and counterterrorism. "This [center] screams loudly and clearly that we are making a transition from the old to the new economy," said Danville Mayor Sherman Saunders at the 2012 ribbon-cutting ceremony.

Perhaps one drawback of Danville’s economic development success is that nDanville’s residential rollout has been slower than expected due to overwhelming demand from the commercial sector. Network Manager Jason Grey revealed there is a waiting list of businesses eager to connect to the network which is pushing residential connections back. Grey says it’s a problem he’s more than happy to deal with.

New Hampshire FastRoads Update

New Hampshire FastRoads is leading the charge to connect the region. The project is funded by American Recovery and Reinvestment Act (ARRA) grants, private donations, and contributions from local communities. We spoke with Carole Monroe, Executive Director, to get an update on this open access network in rural western New Hampshire.

The first municipality to be connected to New Hampshire FastRoads, Richmond, was connected on November 1st. One-third of the network is now lit and the remainder will be completed and lit by November 30, 2013. Monroe tells us most of the 235 community anchor institutions (CAIs) have fiber terminated at their facilities and connections can be easily configured to 1 Gbps

There are also 75 residential customers, many of whom are choosing 20 Mbps symmetrical service. A smaller number take 50 Mbps or 100 Mbps symmetrical service. Monroe notes that people in the community with home based businesses or telecommute are signing up quickly.  

Monroe also told us about the Hampshire Country School, a private boarding school in Ringe and CAI. Before FastRoads, the school had only a T1 line. They will be connected with 50 Mbps by the end of the month.

We also touched base with Kenneth Kochien, Director of Information Services at Colby-Sawyer College in New London. The college is one of the many CAIs along the network. Kochien told us via email:

NH FastRoads provides our institution with alternative bandwidth solutions which have made a very significant difference in both affordability as well as enabling us to pursue  various cloud-based strategic services. In other words, more than one budget line is impacted by having affordable and sufficient bandwidth.  

Most importantly, it has enabled us to provide quality Internet experience for our students. As is well known, students seemingly have an insatiable appetite for multiple devices along with the need for continuous connectivity to social media. All of that is dependent on bandwidth.

NH FastRoads provides us with a path for future growth. The  absence of NH FastRoad service would have made meeting the administrative and academic technology needs of the institution far more challenging. Thank you NH FastRoads.

The network has four Internet service providers on the network, two of which also provide residential service. Monroe expects several more providers to come on board when they realize their CAI customers want to be served via the fast network connections. 

Monroe says New Hampshire FastRoads is now looking to the future. There are local neighborhoods not yet connected that are considering paying for builds themselves. FastRoads is helping them examine different models to bring the network to their communities. There are several towns with fiber in parts of town that are seeking ways to get the entire town connected.

The competitive environment is working in New Hampshire says Monroe:

For all the reasons the grants were written the way they were regarding open access, and creating a competitive environment, and including the CAIs for sustainability but also to give them better service - that is all working. The intent was good and the intent is working.

Los Angeles Wants Better Networks

The City of Los Angeles has announced a confusing intention to release an RFP for a vendor to install a gigabit fiber network. A recent Government Technology article touches on the broad plan to build a massive fiber and wireless network to every public and private premise. 

GovTech spoke with Steve Reneker, general manager of the Los Angeles Information Technology Agency. We last spoke with Reneker in Episode #11 of the Community Broadband Bits podcast. In that interview, he described how Riverside, California, used the publicly owned network to revitalize the economy and support the community's digital inclusion plan. Los Angeles wants to emmulate Riverside's success. From the GovTech article:

“[The plan] is really focused on fixing the operational issues that due to the economy have been left by the wayside over the last three and four years,” Reneker said. “So, correcting the lack of investment, the lack of technology refresh, the reduction in staff that make operational aspects of our infrastructure difficult to keep going forward, tries to deliver an incremental approach to starting a long, lengthy rebuilding process.”

Councilman Bob Blumenthal introduced a proposal in August, 2013 to also blanket the city in free Wi-fi. Blumenfield's website states the city has 3,500 existing wireless hotspots.

Engadget reports that the City Council unanimously approved the proposal to move forward with the plan at a November 5th meeting. A Request for Proposals will be issued in the coming months for the fiber and free wireless network:

It's expected that the fiber will also supply residents with free internet access at speeds between 2Mbps and 5Mbps, with paid plans scaling up to a gigabit. Naturally, the city expects the effort will bring free or affordable WiFi to kids who've scored iPads through the school district. The entire scheme is expected to cost $3 billion to $5 billion, but the outfit that builds the network will have to foot the bill. 

Ars Technica Logo

Experts wonder if large providers, who may be the only ones with the resources to make such an investment, would be willing to invest. Harold Feld from Public Knowledge spoke with Ars Technica:

"My first reaction is 'I look forward to their RFP for a unicorn supplier, because I think it's about as likely under these terms,'" Harold Feld, senior VP of the technology-focused consumer advocacy group Public Knowledge, told Ars.

The Ars piece pointed out some advantages to a winning bidder in such an arrangement:

While the vendor would have to provide free Internet to everyone at the network's slowest speeds (potentially with ads to support the service), it could also charge a premium for everything up to gigabit lines and could sell TV and phone service to everyone in LA. Moreover, the winning bidder could get contracts to provide the city government with data center hosting and perhaps other IT services like e-mail.

"I like to think of it as limited at this point only by your imagination," Los Angeles City Council member Bob Blumenfield, who came up with the idea, told Ars.

ILSR's Christopher Mitchell also spoke to Ars:

"As I understand California law at this point, LA would be asking someone to do something that they could do now. LA doesn't appear to be giving them any specific inducement to do so. And a lot of providers, if they were going to do this they would just pick a part of LA and do it there. There's no reason they would choose to do it everywhere."

Mitchell suggested LA take an approach similar to award winning Santa Monica - installation of conduit in all construction projects. Over time, the city could have an extensive network of pathways for fiber. City Net leases dark fiber to area businesses, connects government facilities, and provides affordable lit fiber to local commercial customers.

At this point, the city tech department has been directed to draft an RFP [see the PDF of the Innovation, Technology and General Services Committee Recommendation]. The RFP will list "available assets and services that would entice a vendor to provide a build out of some level of free broadband service to all City residents while respecting the commercial carrier's basic levels of service and to not significantly influence carrier competition." Developing that list may take some time. Blumenfield notes that a map or catalog of total city fiber may not exist.

When pressed for details on what the city could offer any vendor, Blumenfield told Ars:

"You're asking me to define these things and at this point I'm hesitating to define them, because at this point we're just really at the early phases. It's what you imagine it to be. We're issuing these RFPs to get people to think big and to bring forth proposals to the city of how they would partner with the city."

Update on 11/19 from Christopher - The more I learn about the approach, the worse I think it is. Craig Settles interviewed Steve Reneker and it sounds like Los Angeles will be making itself more dependent on a provider that almost certainly will not be rooted in the community. It is proposing to subsidize a rollout by promising contracts for city services (also known as the failed Minneapolis Wi-Fi model). This is particularly disappointing for a city that has significant resources that would allow it, at a minimum, to move toward an actual partnership as Seattle settled on this year. This RFP is a refusal of the local government to take responsibility, not a smart plan.

Bristol Virginia Utilities to Offer Home Management Services

BVU in Bristol is now offering Quantum Home, a security and home management system that uses the community's publicly owned fiber network. The system allows home owners to also manage lights, temperature, and appliances from anywhere using a computer, tablet, or smartphone. For a quick video demo, check out the BVU website.

Installation costs range between $200 to $2,000 for installation and monthly charges are $39.95 - $49.95. Comcast offers a similar service, Xfinity Home, and requires installation fees to be paid in full when the system is installed. BVU plans to allow customers to amortize the installation fees over 12 months if they wish.

BVU launched OptiNet in 2001 and offers reliable triple-play at affordable prices in Bristol and surrounding areas. We talked with Jim Baller about the history of publicly owned networks in Episode #57 and Episode #63 of the Community Broadband Bits podcast. BVU's OpiNet played a prominent role as one of the first publicly owned completely fiber triple-play networks.

Tricities.com reporter David McGee recently attended a BVU Board of Directors meeting where management described the new service.

“This is an exciting new service that is actually in the market and we’ve already been selling it,” [Authority interim CEO Mike] Bundy told the board... "It will be not just home security but home automation. It’s cutting-edge technology.”

Washington Post Covers Big Longmont Referendum Victory

Last week, we were excited by the results of Longmont's referendum, but we sure weren't alone. The Washington Post's Brian Fung wrote, "Big Cable may have felled Seattle's mayor, but it couldn't stop this Colo. project.

Our regular readers know that Comcast succeeded in defeating the Longmont measure in 2009 but the electoral would not be swayed by false promises and lies the second time in 2011. This year's proposal asked voters to approve a revenue bond for $45.3 million to speed up a planned expansion, which voters approved 2:1.

Contrary to past experience, Comcast and allies did not launch a full frontal assault in Longmont this year to sway the vote. Fung's article looks at the math for a possible  explanation:

There are 27,000 households in Longmont. Even if the city were to connect all of the eligible homes [close to the fiber ring] to its existing fiber network overnight, it would still reach only 1,100 residences. Cable companies therefore spent over half a million dollars [in 2011] trying to prevent four percent of city households from gaining access to municipal fiber on any reasonable timescale. That's around $600 a home, or six months' worth of Xfinity Triple Play.

Even if the cable companies decide it was not worth the fight in Longmont, they have shown repeatedly that they have cash, will travel. Feung's article describes another 2009 election in which the cable industry spent large to prevent public investment in fiber:

In North St. Paul, Minn., a 2009 ballot measure to let muni fiber move forward was defeated by a resounding 34-point margin. Opposition to the fledgling network, PolarNet, was led by the Minnesota Cable Communications Association. In the weeks leading up to the vote, it and other opposition groups spent some $40,000 campaigning against the measure. MCCA alone contributed more than $15,000 to the effort over the same period.

Comcast also exhibits its willingness to spend money to seat industry-friendly candidates. We reported on coverage in Seattle where Comcast contributed heavily to Sen. Ed Murray who won the Mayoral race. Outgoing Mayor Mike McGinn's policy initiative to bring better Internet access to the community threatened Comcast's position. Comcast denies it, but speculation abounds that McGinn's position on broadband motivated Comcast's direct and PAC contributions to Murray. 

From the Fung article:

But what Longmont's experience does show is how large the gulf is between an incumbent industry that can spend money on a massive scale to promote its interests and advocates of municipal fiber that often lack deep-pocketed allies. Those odds made the triumph of Longmont's municipal fiber backers all the more remarkable.