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American Enterprise Institute Scholar Calls DSL Obsolete

For the second time this year, one of the major defenders of the cable and telephone companies has admitted that DSL cannot provide the Internet access we need as a nation. This admission validates our research as well as that of Susan Crawford and others that show most Americans are effectively stuck with a cable monopoly.

On April 7, 2014, the Diane Rehm show hosted another discussion on telecommunications policy with guests that included Jeffrey Eisenach, the Director of the Center for Internet, Communications, and Technology Policy at the American Enterprise Institute.

During that show, Eisenach stated, "The vast majority of Europeans still only have DSL service available, which we in the United States consider really almost an obsolete technology now."

Interestingly, Eisenach and others have repeatedly claimed that there is no market failure in the US - that we have plenty of choices. But most Americans have to choose between what most now admit is an obsolete DSL product and cable. Eisenach would add 4G LTE as another competitor, but as we have noted many times, the average household would have to pay hundreds of dollars per month to use their LTE connection as a replacement for DSL or cable.

The average household uses something like 40-55 GB of data per month. Given the bandwidth caps from LTE providers, the overage charges quickly result in a bill of approximately $500 or more depending on the plan. This is why the overwhelming majority of the market uses mobile wireless as a complement, not substitute to wired networks.

We are left with one conclusion: there is no meaningful competition or choice for most of us in the residential telecommunications market. And no real prospect of a choice either as the cable companies only grow stronger.

This is not the first time Eisenach admitted that DSL is insufficient for our needs. Back in January, on Diane's show, he again used Europe's dependence on DSL as evidence that it was falling behind: "They are reliant on these 20th century copper networks which have real limits on the amount of speed that they can deliver."

Even those who only want the private sector to deliver services are starting to admit that the existing providers are failing us. What more do communities need to take an active role in ensuring their needs are met?

GovTech Covers Famous Free Wi-Fi in Oklahoma

Ponca City's free Wi-Fi has attracted attention over the years. A recent article in Government Technology focuses on the free Wi-Fi service and reveals the secret behind Ponca City's jewel - their municipal fiber network. 

From the article:

So what makes Ponca City’s wireless network a long-term success, and what suggestions do city officials have for other areas that want to replicate it?

It all starts with fiber, said Technology Services Director Craige Baird and City Manager Craig Stephenson. But fiber’s price tag stops many local governments in their tracks, especially when they want to do it in a year instead of building a network out slowly over a number of years.

As we reported earlier this year, Pona City's wireless is supported and funded by its fiber network. The community began the incremental installation in 1997, adding more each year; the network is now over 350 miles long. Revenue from commercial customers supply the funds for the wireless mesh network.

Residents can use the basic service for free and a modest investment optimizes their access:

While the network can be accessed by wireless-enabled devices throughout the city, residents can install a Wi-Fi modem in their house to receive a stronger signal indoors. The optional modem, called a Pepwave, costs about $150 and comes set up to connect to the free public network. The city got local computer stores to stock and support the devices, and in so doing, helped those businesses.

The service has also had wider reaching benefits:

During the recent recession, the $30 to $70 per month residents had previously paid to commercial Internet service providers stayed in Ponca City, helping “churn the economy,” Stephenson said.

In addition, Stephenson and Baird cited the network as a huge benefit to the schools and career technology center to help train and keep students in the area for economic development. Eighth-graders up through high school have electronic textbooks, laptops or notebooks, said Stephenson, “and that was only possible because everyone inside the city limits has Internet access.”

Understanding the Georgia Communications Cooperative - Community Broadband Bits Podcast #92

While at the SEATOA Conference in Raleigh last week, I met Mike Foor, the President and CEO of the Georgia Communications Cooperative (GCC). Given the important role GCC is playing in expanding great Internet access in rural Georgia, we wanted to interview him for Community Broadband Bits.

Back in episode 46, we spoke with Paul Belk about the North Georgia Network (NGN). This week we learn more about how cooperatives have worked together to form the GCC and help the NGN to expand.

Mike and I also discuss what it will take to connect rural homes, businesses, and anchor institutions with fiber optics - the real challenges and the imagined ones.

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 Valley Lodge for the music, licensed using Creative Commons. The song is "Sweet Elizabeth."

Richmond Neighborhood Gets Free Wi-Fi in California

Residents in the Iron Triangle neighborhood of Richmond are now receiving free Wi-Fi as part of a new pilot program. The pilot, sponsored by Building Blocks for Kids (BBK), hopes to make Internet access widely available to the many local families who cannot afford it. New towers have been placed on local homes to extend access to approximately 400 houses.

BBK is a collaborative of 30 government agencies, nonprofit groups and community leaders. The pilot project is funded by a $500,000 grant from the California Emerging Technology Fund to address digital literacy in areas of Richmond where affordable Internet access is not readily available.

A recent Contra Cost Times article covered the story. According to the article, an Internet connection tower is mounted on local resident, Yolanda Lopez's roof:

The Internet tower installed on Lopez's house receives signals from Internet Archive, a nonprofit organization that has a 40-foot tower at 2512 Florida Ave. Lopez's transmitter sends free Internet signals for a radius of a few hundred yards, providing the web to dozens of neighbors, said Internet Archive engineer Ralf Muehlen.

The ongoing costs to provide the signal, now that the hardware is in place, is "negligible," Muehlen said.

By summer, BBK partners hope to outfit 20 houses in the Iron Triangle with signal towers, providing free high-speed Internet signals to more than 400 homes, said BBK Executive Director Jennifer Lyle. A second tower has already been installed at a home in Atchison Village, Lyle said.

The BBK press release notes that several public and private entities worked together to enhance the Wi-fi service:

Because of the technical skills of collaborative member ReliaTech and the IT infrastructure expertise of City of Richmond’s Department of Information Technology, low-income Richmond residents will have access to wi-fi at an impressive 12-16 megabits per second.

The neighborhood of just under 20,000 has had problems with high rates of crime for many years. A 2013 survey reflects that residents of the neighborhood are not embracing connectivity because it is too expensive for them. The results of the survey are part of a larger study from BBK examining home Internet access and usage in the Iron Triangle neighborhood. The study indicates that one-third of local residents do not have access at home and 40% do not own a working computer.

The grant has also allowed BBK to distribute 1,000 free refurbished computers and provide training to over 900 families.

Lopez told the Times:

"All my neighbors are coming up and thanking me for the free Internet," Lopez said in Spanish. "A lot of people can't pay $50 per month."

Save the White Spaces! From Public Knowledge

The FCC is now contemplating how much newly freed spectrum to retain for public use and how much to auction off to private companies for their exclusive use. Public Knowledge is leading the effort to ensure we retain enough shared spectrum to unleash more innovation and public benefits rather than simply padding the profits of a few massive firms that already control plenty of it.

In addition to the Gigabit Libraries Network's White Spaces Pilot Project, we have shared white space technology stories from North Carolina and New York

Public Knowledge recently created a video on the prevalence of spectrum in our lives, included below. Most of us take for granted the fact that shared (or unlicensed) spectrum permeates our culture. 

Instead of sitting by while the resource is auctioned off to the highest bidder, Public Knowledge has also created a petition to retain the spectrum needed for white space technology to spur more innovation. From the petition:

One of the most promising new technologies uses the empty spaces between television channels, the so-called "TV white spaces" (TVWS). The United States currently leads the world in this new technology. In the few short years since the FCC approved use of the TVWS, companies have built and shipped equipment to bring needed broadband to rural communities, creating jobs and expanding opportunities.

...

We call on the FCC to set aside 4 reclaimed TV channels, or 24 MHz, for TV white spaces. This will still leave the FCC more than enough to auction to wireless companies for their commercial needs. By reserving 24 MHz of "unlicensed" spectrum across the country for TV white spaces, the FCC will encourage further innovation in wireless services and foster the growth of next generation WiFi contributing billions of dollars in new products and consumer savings.

Video: 
See video

Vidalia's Broadband Initiative Moves Forward as Free Wi-Fi Comes to Town

Vidalia's plans to offer free Wi-Fi are becoming reality. The Natchez Democrat recently reported that the City launched its free Wi-Fi in its new municipal complex.

Vidalia received a $30,000 grant from the Telecommunications Development Fund (TDF) Foundation to invest in a wireless network to cover the complex. Apparently, visitors to the complex were often surprised to learn that there was no Wi-Fi available. From the article:

[Mayor Hyram] Copeland said the project came about after multiple teams coming to participate in tournaments at the recreation complex asked about Wi-Fi access.

“I was embarrassed to say, ‘No,’ but now I can say we do,” Copeland said. “But the end result of all this is that we will have moved this community forward.”

The next step will be free Wi-Fi along the City's riverfront.

Even though federal American Recovery and Reinvestment Act (ARRA) funds to Louisiana were pulled back, Vidalia decided to press on with its broadband plans. The City has since cultivated several grant sources and is piecing together the funds needed to proceed with its estimated $9 million fiber network. Vidalia wants to develop a smart-grid and potentially provide fiber to every premise.

The community, with some of the highest unemployment rates in the country, sees the presence of better broadband as critical to economic survival. From the article:

“Broadband is such a routine infrastructure for companies nowadays that they almost assume you have it, and us not having it could have hurt us in the long run,” [Concordia Parish Economic Development Director Heather] Malone said. “Now, we’ll be able to use this as a tool to recruit new businesses and offer it to our existing businesses.”

Kansas Community Benefits from Community Owned Networks

Even though the Kansas cable lobby have temporarily retracted their competition-killing telecom bill, we still want to highlight the benefits of preserving full home rule, local authority by focusing on a number of communities, including Chanute, Ottawa, and Erie.

Chanute

We have reported on Chanute's municipal network for years. The community leveraged its electric utility assets and incrementally built an extensive publicly owned gigabit fiber network. Over several decades, the community expanded its network to serve schools, libraries, local government, and businesses. Chanute took advantage of every opportunity and created a valuable asset with no borrowing or bonding.

Several business, including Spirit AeroSystems, chose to locate in Chanute because of its incredible fiber network. Spirit brought approximately 150 new jobs. The network also retained jobs when incumbents refused to provide needed upgrades to local businesses. Rather than leave town, the businesses connected to the City's network and increased their productivity. 

Former City Manager J.D. Lester referred to municipal broadband as “the great equalizer for Rural America,” saying: “You don’t have to live in Kansas City to work there.” (See our case study Chanute's Gig: One Rural Kansas Community's Tradition of Innovation Led to A Gigabit and Ubiquitous Wireless Coverage [PDF])

Kids in Chanute have access to connectivity other schools can only dream about. The local community college has expanded its distance learning program with higher capacity broadband. Free Wi-Fi hotspots are all over town; money otherwise sent to distant providers stays in the community. Chanute has invested in a WiMAX wireless system that serves public safety all over the region, not only in town. Their other utilities use the network for automatic metering and SCADA applications, saving energy and allowing customers the chance to reduce utility bills.

Chanute Logo

In addition to savings public dollars by reducing the cost of municipal connectivity, the broadband utility generates $600,000 and contributes 5 percent of that to the general fund.

Community leaders recently began planning for a FTTH expansion to bring fiber Internet to every home in town. If SB 304 finds its way into the books, those plans will be derailed and residents will be left with slow cable and DSL access.

Erie

Erie, southeast of Chanute, also utilizes Chanute's extensive fiber network for affordable school connectivity. When it was time to upgrade, Erie approached incumbent Cox. Cox's proposal for 100 Mbps to the high school alone was $5,000 per month. With its microwave network, Chanute is able to provide Internet service to the Erie community where already fiber connects the school facilities. Chanute serves Erie's high school, grade school, administration offices, and the bus barn where students learn auto mechanics. Like Chanute schools, Erie is guaranteed 100 Mbps but able to burst up to 300 Mbps when capacity allows. Erie pays only $5,100 per month and 80% of its connectivity fee is reimbursed by the federal E-rate program.

Ottawa

Inspired by Chanute's success, nearby Ottawa launched its fiber network in 2013. Ottawa joined forces with its school district and county government. Ottawa used an existing patchwork school district and county fiber, linking them together as a community network backbone. Each entity retained ownership of their resources but shared fiber strands with the City.

Ottawa businesses were dissatified with services from incumbents who were not interested in upgrading. Choices were expensive and slow T1s or an uber expensive DS3. Multiple appeals to incumbent AT&T yielded no results.

Schools, the area community college, and a farmers' cooperative connect to the network for better capacity and lower prices than AT&T will offer. The school district has cut its connectivity fees in half from $6,000 per month to $3,000 per month, by switching to Ottawa as a service provider. They now receive double the speed they used to purchase because the community network takes a much different approach than AT&T. From our April 2013 article on Ottawa:

Ottawa followed Chanute's example by providing a floor instead of a ceiling as the foundation for service. In other words, customers contract for minimum capacity but are allowed to burst to whatever capacity is available at any given time. For example, the School District will soon connect with a minimum 250 Mbps with the ability to burst to 500 Mbps.

OnLight Aurora Partners with the City for Better Connectivity in Illinois

Nine years ago, Aurora officials decided it was time to reduce telecommunications costs and upgrade to a faster, more reliable network. The local government built a fiber network to service municipal government, but developed long-term ideas for the network to benefit the entire community.

Nonprofit OnLight Aurora now uses the City's fiber optic network to provide high-speed connectivity to educational institutions, businesses, healthcare facilities, social service entities, and major non-profits. The organization leases fibers from the City's fiber optic network and provides Internet access at affordable rates.

Aurora is the second most populous city in Illinois. The municipal government spans 52 buildings over 46 square miles. Before the city's fiber network, connections were a patchwork of varying speeds and capabilities. Employees in a building with a slow connection would need to travel to City Hall to access a high-speed connections to use the city's bandwidth intensive applications. The network was old, unreliable, and expensive. The Director of Onlight Aurora recently spoke with Drew Clark from Broadband Breakfast :

"In 2005-2006, we came to the conclusion that we were paying $500,000 a year [to telecommunications providers] for leased line expenses,” said Peter Lynch, Director and President of Onlight Aurora.

The 60-mile network, constructed from 2008 - 2011, cost approximately $7 million to deploy. At the beginning of the process, payback was estimated at 10 years. While the short-term goal was to cut municipal connectivity costs, community leaders intended to expand its use in other ways. The City now saves approximately $485,000 each year from having eliminated leased lines. From a Cisco case study on Aurora [PDF]:

Conduit

“With local governments increasingly facing limited resources, you have to be able to find efficiencies in operations.” Although the cost savings are gratifying, [Ted] Beck,[Chief Technology Officer] notes that that was just the beginning: “The priority for the fiber optic network was initially cost savings; however we’re realizing that the benefits don’t end there. We’ve had some super wins with this technology, and we’re going to keep leveraging the infrastructure.” Mayor Weisner confirms these successes: “Pretty quickly, we saw a return on investment, both financially and otherwise. We have a much greater capability and fewer problems.” 

In 2011, Aurora received a Congestion Mitigation and Air Quality (CMAQ) grant from the Federal Highway Administration (FHWA) administered through the Illinois Department of Transportation. When the FHWA sought communities for the pilot program and accompanying grant, Aurora's existing fiber network was a plus. During construction of the city network, Aurora had installed extra fiber strands in its conduit. City traffic engineers used several strands to synchronize intersections to improve traffic flow. The grant, of approximately $12 million, upgraded 60 traffic signals. It also allowed Aurora to eliminate all remaining debt on the network.

From the Broadband Breakfast article:

“We have been able to see better movement of traffic, which alleviates congestion and air quality,” said Eric Gallt, the city’s Traffic Engineer. The fiber loop enables city traffic officials “to see what is going on remotely, and it decreased the cost of the project by 50 percent or more.”

That same year, Mayor Tom Weisner formed a broadband task force to field specific ideas for best utilizing the fiber optic network. In 2012 the group created non-profit OnLight Aurora. The organization received a $25,000 grant and a three-year $150,000 loan from the City. OnLight and Aurora entered into a 20-year agreement for OnLight to lease network fiber strands from the City. OnLight would then lease access to the fiber backbone to other entities at affordable rates.

Aurora Illinois

In 2012, OnLight Aurora received a $1 million Illinois Gigabit Communities Challenge award. The Illinois Department of Commerce and Economic Opportunity awarded the grant as seed money. OnLight Aurora also received another $1 million in matching public and private funds. The organization used the funds to offset costs of connecting customers and to expand to better reach developing business parks and healthcare facilities. Schools, medical centers, social services agencies, arts & entertainment entities, and businesses now connect to the network at speeds of up to 10 Gbps.

In August 2013, Indian Prairie School District 204 announced its plans to expand its technology program. The connection allows the District to connect two of its data centers. District 204 obtains a 10 Gbps connection from OnLight Aurora for $39,600 per year. OnLight provides ample bandwidth for the district's bring-your-own-device initiative. A portion of the $1 million Illinois Gigabit Communities Challenge grant paid for the cost of connecting the fiber.

OnLight also offers wireless connections as an economical way to serve small- and medium-sized businesses. OnLight uses city-owned towers and buildings that are already connected to the fiber for wireless point-to-point connections. The wireless complement will connect schools, businesses, and other entities when a lengthy fiber connection is too costly.

Businesses in Aurora are connecting to the fiber. An August Beacon-News article on the wireless plan also tells the story of security company Alarm Detection Systems (ADS). The company went from T1 connections at 1.5 Mbps to 20 Mbps connections from OnLight for approximately $500 per month. From the aricle:

While cases vary based on a number of factors, the upfront installation cost for Alarm Detection Systems offices to connect directly to the fiber network are about $19,000, according to [company IT Manager Mark] Schramm. But the reliable and fast connection will save the company money in the long run.

“We’re saving money and believe we’re getting a better product,” he said.

According the a recent Beacon-News article, OnLight Aurora is now reaching out to local businesses through seminars. An article about the January 29th seminar quoted a city official:

“Attendees will receive the necessary tools to better understand and employ the OnLight Aurora network resource for their businesses and organizations,” said Clayton Muhammad, Aurora Director of Communications.

OnLight Aurora's three year plan includes doubling it's current length to 100 miles. The network is completely underground and any carrier has access to the infrastructure.

Ponca City Fiber: Serving Businesses, Schools, and Offering Free Wi-Fi

Its extensive free Wi-Fi has brought Ponca City into the limelight but the mesh network did not appear overnight. The community effort began with miles of fiber network that provide connectivity and enable the mesh network financially and technically.

Ponca City, home to 25,000, is located on Oklahoma's north central border; Tulsa, Oklahoma City, and Wichita are all more than 90 miles away. The petroleum industry flourished in Ponca City until the oil bust in the 1990s and the population began to decline as workers moved away. Community leaders sought ways to salvage the local economy through economic development. They began to focus on the technology, manufacturing, and service industries.

The municipal electric department, Ponca City Energy, installed the first five miles of fiber in 1997 and five more in 1999 to connect outlying municipal buildings to City Hall. Line crews from the utility and the City Technology Services Department handled all installation to keep expenses down. The City continued to add to the network incrementally, exapanding it to over 350 miles. The network also serves the City's SCADA system.

In 2003, Ponca City Energy connected the local schools, and the Ponca City Medical Center to the network. The network also began providing Internet to the University Learning Center of Northern Oklahoma, now named the University Center at Ponca City. The Center collaborates with thirteen higher education institutions to provide distance learning in 48 online degree programs.

Ponca City eventually began offering Internet access via the fiber to commercial customers. According to Craige Baird, Technology Services Director, most businesses in the community purchase Internet access from the City. Revenue from commercial Internet customers, approximately $36,000 per month, pays for the wireless mesh network.

In 2008, Ponca City installed the wireless network for the City's public safety entities. The wireless complement allowed employees in the field to immediately transfer information that in the past required a drive back to the office. In addition to police and fire, employees such as electrical linemen, ambulance attendents, and code enforcement officers use the network. The City connected 25 percent of its 500 wireless routers to the fiber optic network, creating a robust mesh with ample bandwidth over 150 square miles. The City chose to use the excess bandwidth to provide free Wi-Fi to the public.

Wi-Fi logo

City officials estimate the network saves residents almost $4 million a year in Internet fees. Over 17,000 people use the free service, allowing them to keep more dollars in the local economy. The Wi-fi speeds range from 7 - 12 Mbps download. The network will support the community's upcoming technology plan to supply laptops and tablets for students. 

The City has also implemented a virtual desktop solution, allowing city employees to access their desktop from any Internet connection. To insure redundancy, the City has mutual fiber lines between its server rooms and its Disaster Recovery site, located miles away. The City received a 2013 Municipal Innovations Award from the Oklahoma Municipal League for its infrastructure and disaster recovery. From the Oklahoma Municipal League announcement:

Overall, Ponca City has started the technology move over twelve years ago with the first installation of fiber optic cable. But now that basic installation has grown to provide the backbone for an entire network that provides services not only to the employees but to the citizens and businesses in Ponca City. Technology will continue to be an important part of Ponca City’s future.

High Speed in the Blue Grass State: Russellville's Gig

The Logan Journal recently reported that the Russellville Electric Plant Board (EPB) now offers gigabit service to local businesses. The article notes that Net Index, an online tool to measure download and upload speeds, recognizes EPB as the first Gig city in Kentucky. To learn more about the community and its network, we talked with Robert White, General Manager of EPB.

The community of 7,000 is the county seat of south central's Logan County. Russellville is located in the center of several other larger communities: Nashville, Bowling Green, Hopkinsville, and Clarksville, Tennessee. Manufacturing has been a large part of the local economy for generations, but community leaders recognize the vulnerability of a narrow economic base. In order to encourage a versatile economy, Russellville invested in its telecommunications utility.

The community wants to encourage small business while simultaneously providing manufacturers the connectivity they need. Leadership sees the ability to remain competitive directly tied to their network. In addition to the economic development opportunities a fiber network can provide, communities like Russellville rely on electricity revenue from large consumers. Retaining the large electric consumers that also provide jobs in the community it a must.

Russellville's electric utility created a strong advantage when it was time to venture into telecommunications. EPB had already established a strong relationship with its Russellville customers, says White, and locals felt they could trust their municipal electric provider.

EPB began offering wireless Internet to the community in 2005; at the time, there was very little choice for wireless or wired Internet. The product was competitively priced and it performed well for wireless service at the time but EPB eventually shifted focus to its next generation high-speed network. The wireless service is still available to customers who subscribed prior to the construction of the fiber network but EPB no longer offers it to new customers. Wireless speeds vary from 1-2 Mbps download and approximately 500 Mbps upload. The area now has several options from the private sector - Verizon and Bluegrass Cellular provide wireless up up to 10 - 15 Mbps.

Russellville EPB Logo

According to White, Russellville's inspiration to build the network was not to compete, but to fill the services gap. He told us:

"We support Logan County residents having the best product. If that means us offering the product, that's fine. If it means the private sector will step up to the plate and serve the areas we can't serve…that's fine as well. We want our residents to be served, whether by us or an incumbent."

Larry Wilcutt, White's predecessor at EPB, began studying the possibility of a fiber network in 2007, but external forces motivated Wilcutt and EPB to seriously pursue the project a few years later.

In early 2010, EPB learned that its power supplier, the Tennessee Valley Authority (TVA), would switch to time-of-use wholesale rates and begin using smart grid technology by 2012. In order to participate in the new technology, EPB needed meters that could communicate with its electrical system operations. EPB installed fiber optics for Advanced Metering Infrastructure (AMI) and for future expansion into telecommunications. A News-Democrat & Leader article from October, 2010 (reprinted at MobilityTechZone.com) reported:

The EPB's goal is to eventually install fiber optic cable to every home and business in Russellville, is installing the cable to every home in the Russellville, city limits -- even those that are serviced by other electricity providers. There are also plans to include some locations outside of the city limits to extend service to the more populated areas adjacent to the city limits of Russellville. 

The article quoted Wilcutt:

"The Board has been working on this project for over two years and we are extremely excited to finally start construction on this project. We want to provide the citizens of Russellville with a system that is second to none, one they will be proud of, one that will entice new investment in the community. Whether that new investment is in the form of capital, technology or people, we believe the City of Russellville and Logan County will benefit well into the future" Wilcutt said.

AT&T Logo

At the time, the best connectivity in Russellville was AT&T's DSL at 6 Mbps download. Satellite Internet was available but was unreliable, expensive, and maximum speeds were 1 - 2 Mbps download.

The community was also starved for quality video service. Suddenlink did not offer HD channels and made it clear that HD service was not planned for Russellville. Large corporate providers had no interest in Russellville so EPB felt it was time to take control of their own connectivity.

Construction of the 99% aerial, 120-mile network began in October 2010; EPB began offering services in December 2011. White presented the results of an audit in November 2013 to the City Council showing that 8% of EPB's total revenue came from its broadband division. The audit also showed that the network was ahead of its projected take-rate with 1,300 active subscriptions out of 4,000 passed homes. 

The network capital costs were approximately $11 million with approximately two-thirds designated for electrical system expenditures. In 2010, the American Recovery and Reinvestment Act (ARRA) offered Build America Bonds (BABs), some of which provide federal subsidies to help communities pay back interest to bondholders. BABs, backed by electric system revenue, provided funding for the entire project and contributed to interest expenses.

EPB offers services to every home and business in its service area and hopes to expand further. They expected video to be the lead product, but  Internet service is the most popular. White considers the lack of high-speed Internet in the region the driving force. The commercial gigabit product is new and no customers subscribe yet but local businesses take advantage of the fiber network. One local contractor tells White he enjoys the ability to share documents and bid for projects online without fear of technical glitches. When he used unreliable DSL connections to transmit data, he was perpetually concerned about deadlines and the status of data sent via DSL.

Local public safety agencies, the local library, Russellville City government, and Russellville Independent Schools now use the network. EPB and the Logan County Schools may soon be working together.

Word of Mouth graphic

In addition to providing much needed connectivity to the community, the network provides an increased stream of revenue. EPB submits a payment in lieu of taxes (PILoT) to county and city governments based on electrical and broadband services revenue. As EPB gains customers transitioning away from satellite video service, its contribution to the City increases; satellite providers do not pay a franchise fee to Russellville. At a July 2010 City Council meeting, EPB expected broadband services to add approximately $25,000 in PILoT within the first five years. EPB also pays a separate and voluntary video franchise fee to the local municipality. 

These days, White and EPB are concentrating on raising awareness of the commercial gig product and service to residents. To spread the word, EPB holds regular workshops for the community to explore ways to maximize the the network's possibilities. Commercial gig service is available for $1,499.95 per month.

White and the EPB understand that the private sector must make decisions based on returns. In the case of this publicly owned network, some key returns take the form of benefits to the community. Since EPB lit its network, White and his crew often hear from customers who rave about their service. White says:

"They hate to pay electric bills but they say getting superior broadband services from EPB is all worth it."

EPB's residential fiber Internet services begin at 20/5 Mbps for $39.95 per month with higher speeds at 100/25 Mbps for $69.95 per month. Video services from EPB range from $29.95 per month to $62.95 per month with the option to add over 100 HD channels. Voice packages start at $14.95 per month.

For Chris' recent interview with White, check out episode #82 of the Broadband Bits podcast.