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Community Broadband Media Roundup - November 30, 2014

This week in community broadband, more communities are adding broadband to the list of essential utilities, and many of them are turning to Chattanooga as a model “gig city.”

As Times Free Press’s Dave Flessner reports, the great thing about Chattanooga's approach is that it’s not just about Internet. In fact, the broadband boom is really an unintended benefit of the city’s cutting edge smart grid, which keeps the city’s lights on and powers the economy as well. 

"What we're going to try to do is bring some of the brilliant people from Warner Bros., Fox, Disney and IBM down here to Chattanooga to help them get their heads wrapped around this notion that you've got to stop worrying about scarcity," [Annenberg Innovation Lab director Jonathan] Taplan said.

Last year, T-Bone Burnett, a Grammy Award winner, performed "The Wild Side of Life" from a Los Angeles studio with Chuck Mead, a founder of the band BR549 who was on stage in Chattanooga.

"They sang a song together over 2,000 miles apart," Taplin said. "That's the power of gigabit Internet. I think we're just beginning to think of the possibilities of what this thing can do."

And Android Authority’s William Neilson Jr. explores the desire for faster connections and more choices.

“Isn’t it amazing how much faster broadband speeds are in parts of the country where there are a number of broadband options available to residents? How many times am I going to write an article detailing a broadband provider telling a city that they don’t need “fast” speeds even though the city is universally angry at their lack of broadband options?”

Of course, we see the product of how increased competition brings better service even more clearly in communities that have municipal networks, not just in Google's Kansas City network. It is an outcome that all communities can achieve if they regain the authority to do so. 

In the beginning, Lafayette, Louisiana created its own utility system. And it was good. Steve Stackhouse Kaelble goes back to the very beginning of municipalization of utilities in his research on public power this week:

Lafayette is just one community, but it provides a great illustration of the forward-thinking mindset that led many American municipalities into the utility business. In some cases, local leaders got a glimpse of the future and worked to bring it to their communities ahead of the curve. In other cases, they found that the profit-driven business model that works so well in much of the American economy had left them behind when it comes to certain kinds of services.

The fruits of these local efforts are America’s public power communities — places where local governments and other public entities have taken charge to deliver services their communities need to prosper.

Syracuse Mayor Stephanie Miner is making her list and hoping for smarter sensors this Christmas. On Miner’s wish list: municipal broadband, and other essential smart grid infrastructure projects. The mayor requested close to a billion dollars in grant money from Gov. Cuomo for economic development in greater New York. It’s unclear if Syracuse is high enough on Cuomo’s list: 

Reality check: … [Miner is] well aware it's not terribly compelling to spend hundreds of millions of dollars on stuff you can't see. It's an "eat-your-peas'' approach that aligns with Miner's view of the role of government, versus the "shiny toys'' approach favored by Cuomo and the Buffalo Billion… Whether by accident or design, the mayor's plan leaves us wanting more. Think of it as an opening bid. Who's willing to push her vision farther?

And while all of these cities are moving forward with community broadband efforts of some kind, Jason Meyers with Light Reading spoke with the city’s Chief Technology Officer, Mike Mattmiller and noted that despite Seattle’s reputation as a tech leader, it is lagging in the gigabit connecitivity. Mattmiller suggests that a public-private partnership is still desired, depending on how a new study turns out.

Bozeman, Montana residents are urging leaders to help drive down prices and improve Internet speeds this week. Kenneth Silvestri voiced his opinion in the Bozeman Chronicle.

We could continue to be beholden to the monopoly imposed by the telecommunications companies, or we can invest in our future by laying the groundwork for a technology infrastructure that serves the community and expands access.

Sahara Devi seconded that sentiment in Bozeman, and we hope you will do the same in your own communities. When lawmakers on both sides of the isle hear your views on competition, local authority, and economic development, it is hard to back down from taking steps to increase local choices and better connectivity. 

Wi-fi

New York City and Seattle are both looking into wi-fi neighborhoods, with varying success. Last week a Seattle councilwoman announced her backing of Wi-Fi in tent cities, which would help serve the city’s homeless population. This week, T.C. Scottek with The Verge dug in to NYC’s effort to connect parts of the city with Wi-Fi.

One of the biggest problems is that LinkNYC will be funded by advertising, and as the Daily News correctly points out, the poorest neighborhoods in the city aren't worth as much to advertisers as tourist-packed Times Square. That's a reality that makes sense for profit-seeking businesses to build around, but not so much for public-facing utilities that ought to provide reasonably equal levels of service to everyone.

And “Mat Catastrophe” with Charleston City Paper lamented his city’s decision to let Comcast supply the bandwidth for the city’s new Wi-Fi-in-the-parks initiative. It seems Catastrophe is concerned that Comcast may not have the city’s residents real Internet interests at heart. 

… if you're hanging out in one of Charleston's lovely parks and you have a burning desire to do whatever it is you want with a free internet connection, by all means do so. But just don't believe for one second that it really makes the city more livable for any more than a small fraction of Holy City residents. And never forget that it's just another way that public money is siphoned into private hands.

If you want the City of Charleston to really make a name for itself, then you should support the idea of repealing the state law against municipal broadband providers and advocate for whichever mayoral and city council candidates are willing to take up that fight and move Charleston in the right direction in the 21st Century.

Corporate Monopolies and Mergers

Verizon claims it would *not* to sue the FCC to block net neutrality rules. But only if the commission promises it will not reclassify broadband providers as utilities. More and more citizens are making the connection between corporate monopolies and our poor broadband choices. Activists rallied in Brooklyn this week. Jay Cassano reported about the social justice argument for Waging Non-Violence.

Most concretely, the merger could result in higher prices for broadband Internet service, which would hit those who are economically disadvantaged the hardest.

'The merger could really negatively affect people who already have trouble accessing the Internet right now,” said Kevin Huang, campaign manager at Fight for the Future. 'When it comes to cable and Internet, the cost of service is crucial. It’s incredibly important for marginalized communities to participate in the 21st century ecology, but the prices for reliable Internet services have been going up.'”

Chris Joins Sarah Morris on Oregon Radio to Discuss Cost of Connectivity

This is the third year the Open Technology Institute (OTI) at New America Foundation studied the cost and quality of connectivity in the U.S. Once again, the results indicate we trail behind peer countries. On November 11th, Chris joined Sarah Morris, one of the report authors, to discuss the report's findings, municipal networks, and how Title II reclassification may change the landscape. They joined Dave Miller for the Think Out Loud program on Oregon Public Broadcasting. 

In addition to detailed data analysis on where the best speeds and prices are,  The Cost of Connectivity 2014 provides reviews of several other papers from sources such as Akamai, the FCC, and the American Enterprise Institute.

Some notable findings from the report:

  • The average cost of plans in nearly every speed tier studied for the report was higher in the U.S. than in Europe.
  • Cities considered speed leaders have consistently increased speed offerings on an annual basis. In places where the speed was not increased, as in Lafayette, rates decreased. Almost half of the speed leaders cities offer gigabit speeds. 

OTI made special note of the success of municipal networks in places where traditional providers are not willing to invest:

Although there are many examples of successful locally-owned networks, we focus on Chattanooga, TN; Bristol, VA; and Lafayette, LA, which now offer some of the fastest and most affordable high-speed residential products available in the country despite the fact that they have some of the lowest population densities among the cities we survey.

All three cities offer gigabit speeds that place them on par with Hong Kong, Seoul, Tokyo, and Zürich in our speed leaders rankings, although the prices vary from city to city, and are ahead of the major incumbent ISPs in the U.S. In fact, the only other provider that offers gigabit speeds in the cities we surveyed is Google Fiber, which sells 1 Gbps service in Kansas City, KS, and Kansas City, MO, for the same price as EPB in Chattanooga, TN. By contrast, Verizon’s top tier is a 500 Mbps symmetrical connection that is available to some residents of New York, NY; Washington, DC; and Los Angeles, CA for about $300/month, which is significantly more than the cost of a gigabit in Chattanooga, TN (around $70/month) or Lafayette, LA (around $110/month) and comparable to the price of the gigabit package in Bristol, VA (around $320/month) but only half the speed.

In general, our research shows that these locally-owned networks tend to deliver better value to their customers when compared on a price-per-megabit basis to competing cable and telecom providers in their own cities.

The show runs just under 30 minutes.

Correcting Community Fiber Fallacies: Attacks on LUS Fiber

In just the last year the Lafayette Utility System (LUS) gigabit network has attracted 1300 high-tech jobsChairman Wheeler praises the network for doing what many communities hope to do, but cannot because of state laws limiting municipal broadband networks. Critics are desperate to discredit the network, using false statements and misinformation.

The Reason Foundation released a paper by Steven Titch in November, 2013, to discredit LUS Fiber. Here we offer a point-by-point rebuttal of the report. Titch makes numerous claims that he does not support with any evidence. Much of the evidence he uses in support of other claims is out of context or erroneous. And even then, his worst criticism is that the network may struggle in the future but is not currently failing.

Our critical response to Reason Foundation's report (called Lessons in Municipal Broadband from Lafayette, Louisiana) should be helpful to any community considering its own municipal network investment. This document is the first in a series of critical works that we are calling the "Correcting Community Fiber Fallacies" series.

The official page for Correcting Community Fiber Fallacies: LUS Fiber is here, but you can get the pdf directly if you prefer.

Don't forget that you can sign up for our weekly newsletter here - so you won't miss these important stories.

Community Broadband Networks is committed to helping policy makers understand the reality and challenges of community fiber. Correcting Community Fiber Fallacies (CCFF) is designed to correct myths surrounding municipal fiber, and provide the information needed to counter erroneous claims.

Steven Titch's original report can be found at reason.org.

Wheeler Praises Lafayette's Network Deployment at NATOA Conference

At the 2014 Annual Conference of the National Association of Telecommunications Officers and Advisors (NATOA), FCC Chairman Tom Wheeler praised Lafayette, Louisiana, home of muni LUS Fiber, during his keynote address. 

Wheeler addressed a variety of issues, including wireless broadband, the drive to increase competition, and a thoughtful transition to IP based 911 service.

While he did not address the pending petitions from Wilson, North Carolina and Chattanooga, Wheeler did express his admiration for LUS Fiber and the tough persistence of the local community:

However, I do encourage you to consider how local choice and competition can increase the broadband opportunities for your citizens. I love the story of Lafayette, Louisiana where the local incumbent fought the city’s fiber network tooth and nail, bringing multiple court challenges and triggering a local referendum on the project. Thankfully, none of the challenges managed to prevent deployment – sixty two percent of voters approved of the network in the referendum, and the Louisiana Supreme Court unanimously sided with the city – but they did delay deployment almost three years. When the network was finally built, the community experienced the benefits of competition, as the local cable operator decided to upgrade its network. Local choice and competition are about as American as you can get.

We were pleased to hear the Chairman acknowledge the spirit of the community and how their efforts have paid off. Just this year, the community and its network attracted three new companies and approximately 1,300 new permanent and seasonal jobs. Lafayette has focused on improving its tech workforce in order to complement its next generation network - two critical ingredients to creating the Silicon Bayou.

Read more about Lafayette and LUS Fiber in our report, Broadband At the Speed of Light: How Three Communities Built Next Generation Networks.

For the entire text of Chairman Wheeler's key note address, check out the transcript PDF online. You can also read more about the NATOA Annual Conference, held this year in St. Paul, Minnesota's Lowertown. 

Next Century Cities Launch Webcast on October 20

Municipalities are increasingly realizing they need to take steps to ensure fast, affordable, reliable Internet access for local citizens. Some are doing the work themselves with publicly owned projects while others seek public-private partnerships. In order to capitalize on collaboration, a group of city leaders are now forming Next Century Cities.

On October 20, 2014, they will webcast the official launch from Santa Monica at 9:30 a.m. - 1 p.m. PT / 12:30 p.m. - 4 p.m. ET. From the announcement:

We're proud to announce the official launch of Next Century Cities. Next Century Cities is a new, city-to-city collaboration that supports community leaders across the country as they seek to ensure that all have access to fast, affordable, and reliable Internet. Founding Partners represent dozens of cities from across the United States.

On October 20, we will be officially launching at Cross Campus in Santa Monica, CA. Our event will bring together mayors from communities across the country, as well as successful technologists who have helped to implement and run some of the nation's most impressive broadband networks. We're proud to host mayors and leaders from across the country for a series of thought-provoking discussions about how high-quality broadband Internet has begun to empower American communities.

Featured speakers will include

As part of the event, Susan Crawford will moderate a panel discussion with Mayors and city leaders from a variety of communities.

The event will also include a panel discussion moderated by Christopher Mitchell with information and innovation leaders from the cities of Santa Monica, Boston, Kansas City, Portland, Raleigh, and Lafayette.

You can register online for the free event.

Louisiana Municipal Association Passes Resolution in Favor of Restoring Local Authority

The Louisiana Municipal Association is the latest organization to officially support the FCC's ability to restore local authority. The group represents 305 village, town, city, and parish members. Their Executive Board unanimously passed the resolution on July 30 and recently shared it with the FCC:

WHEREAS, the universal availability of affordable high speed Internet access for all citizens has been identified as a national priority; and

WHEREAS, community/municipal broadband networks provide an option for market competition, consumer choice, economic development, and universal, affordable Internet access; and

WHEREAS, historically, local governments have ensured access to essential services by banding together to provide those services that were not offered by the private sector at a reasonable and competitive cost. This involvement has included electrification, public libraries, and other important services; and

WHEREAS, local government leaders recognize that their economic health and survival depend on connecting their communities, and they understand that it takes both private and public investment to achieve this goal; and

WHEREAS, attempts have been made at the state level to limit or stop further local government deployment of municipal Internet services through legislation, which has the potential of reducing the ability of local government to provide important information and services to their citizens in a timely, efficient, and cost effective manner; and

WHEREAS, local governments, being closest to the people are the most accountable level of government and will be held responsible for any decisions they make; and

WHEREAS, the DC Circuit Court has determined that Section 706 of the Federal Telecommunications Act of 1996 unambiguously grants authority to the Federal Communications Commission (FCC) to remove barriers that deter network infrastructure investment;

NOW, THEREFORE, BE IT RESOLVED that the Executive Board of the Louisiana Municipal Association convened at its regular business meeting on July 30, 2014 does hereby unanimously support FCC efforts to ensure local governments are able to invest in essential Internet infrastructure, if they so choose, without state-imposed barriers to discourage such an approach.

In the LMA letter to Chairman Wheeler, Executive Director Ronnie C. Harris wrote:

Communities of every size across the State of Louisiana, as in other state in  our nation, are facing overwhelming problems within this arena as they strive to bring advances in technology to their rural areas to keep up with our rapidly changing world.

Even though Louisiana is one of the states that impose restrictions on local authority, LUS Fiber in Lafayette provides fast, reliable, affordable services to an adoring public. In addition to helping shrink the digital divide, the network contributes significantly to economic development in the area. Within the past year alone, three additional tech companies have been drawn to Lafayette, bringing significant job growth. 

Opponents of restoring local authority argue there are a number of reasons why tech companies have found Lafayette attractive. It is true that the community is well known for its rich culture, beautiful environment, and mild climate. Nevertheless, without LUS Fiber, those companies would be missing an integral tool for business.

If the FCC chooses to restore local authority in North Carolina and Tennessee under section 706 of the Telecommunications Act of 1996, perhaps other Louisiana communities will ultimately be able to benefit.

Read about LUS Fiber in our case study, Broadband At The Speed of Light: How Three Communities Built Next-Generation Networks. You can also hear Chris interview John St. Julian from Lafayette in Episode 19 of the Community Broadband Bits podcast. They have a revealing discussion about local efforts to invest in a municipal networks and struggles the community had to overcome to realize its vision.

Three New Companies Move to the Silicon Bayou

In the past few months, Lafayette has drawn in three high tech companies that will create approximately 1,300 well-paying positions. In addition to the community's commitment to boost its high-tech workforce, better connectivity offered by LUS Fiber helped attract the new businesses.

According to a Daily World article, the most recent addition is Perficient, Inc. The information technology and management consulting company is based in St. Louis. Perficient will add 50 new positions by the end of 2015 and another 245 over the next 6 years; average annual salary will be $60,000. The area should also see 248 additional indirect jobs. Perficient leadership intends to recruit from South Louisiana Community College and University of Louisiana at Lafayette.

This past spring, CGI announced it would employ 400 high-tech employees in a new finance facility in Lafayette. CGI will also recruit from the local high-tech educational programs. James Peake from CGI told the Advocate that the company has made an effort to keep tech positions "onshore" rather than sending them overseas. From the article:

CGI Vice President Dave Henderson cited UL-Lafayette’s top-ranked computer science program and Lafayette’s growing workforce and fiber-optic network.

This past summer, start-up Enquero announced it would open a tech center in Lafayette. The Milpitas, California company plans to hire 350 new employees by the end of 2017. City officials also expect to see 354 new indirect positions. According to Bloomberg Business Week, Enquero executives considered New Orleans, Baton Rouge, and four other states.

From City-Parish President Joey Durel's official statement:

"These are exactly the kinds of jobs we had in mind when we launched Lafayette's fiber-optic initiative in 2004, so I am thrilled to see that companies are starting to recognize what Lafayette has to offer with its affordable, gigabit speeds...I know Enquero will not regret their decision to locate in Lafayette. This community’s investment in itself is paying off.”

Community Broadband Media Roundup - September 12

This week, you might have been tripped up by some infuriating “spinning wheels of death” on the Internet, but don’t worry, the slow-down was largely symbolic— at least for now. Fierce Telecom covered the Internet Slowdown Day protest on Wednesday, organized by “Battle for the Net." It was designed to bring attention to what will happen if so-called “slow lanes” are allowed under new FCC net neutrality rules. 

Netflix, MuniNetworks, Kickstarter, Reddit, and thousands of other sites took part in the protest. “The New Yorker’s” Vauhini Vara writes that Internet Slowdown Day produced more than 700 thousand comments about proposed FCC rules. 

Meanwhile, Amazon is positioning itself to come out on top whichever way the Net Neutrality rules fall. Susan Crawford urged the FCC to take action and “Think Chattanooga.”

“This is not a story of huge companies fighting one another. This is a sweeping narrative of private control over the central utility of our era: high-capacity Internet access. We, the people of the United States, are the collateral damage in this battle; we are stuck with second-class, expensive service.”

Muni Networks are gaining more ground, with Chattanooga and Wilson, NC still in the spotlight. Anne L. Kim took up the issue of preemption on CQ Roll Call. She interviewed Chris Mitchell for the article:

“Communities build their own networks because they think the private sector isn’t investing in them, said Christopher Mitchell… According to Mitchell, in the case of city-wide municipal fiber networks, reasons for deployment are often a mix of getting fast, reliable service at an affordable price.”

Blogger KateCA of My FireDogLake commented on the failings of the invisible hand in the telecom realm in her Corporations and The Commons post. 

“While free enterprise usually merits a hearty rah-rah in certain circles, competition between for-profit entities and publicly-owned ones seems to be a no-no, at least to Rep Blackburn and her crowd when it comes to [Chatanooga’s] EPB.”

In The New York Times, Colin Dougherty laments the search for a killer app in cities where Google Fiber has set down roots. He talked to Chris Mitchell and other experts about the difference between local control and dependence on a corporation like Google:

“It felt like a righteous invading tech company coming in to tell us how to run the city,” he said. Faster Internet helps Google in lots of ways."

The more time users spend searching the web or watching YouTube videos, the more ads Google sells and the more Google services people use. The company could also use Fiber to test new services like household-targeted TV commercials.

As FCC Chairman Tom Wheeler announced his intention to address barriers to competition and broadband deployment, several reporters, including Stephen Hardy of Lightwave Online wrote on the topic.

Regarding the definition of broadband, Ars Technica’s Jon Brodkin and Fierce Telecom’s Sean Buckley wrote that AT&T, Verizon, and others made claims that consumers simply don’t need or want faster Internet speeds.

"Consumer behavior strongly reinforces the conclusion that a 10 Mbps service exceeds what many Americans need today to enable basic, high-quality transmissions," AT&T wrote in a filing. 

AT&T’s comments were made public after Wheeler mentioned that the current definition for broadband is much slower than is necessary for economic growth.  

Casey Houser suggests that gig networks are forcing big telecom to play a game of “anything you can do I can do better”. But many communities are not waiting around for the big guys to come in. More announced this week they are dipping their collective toes into the municipal broadband pool. 

Lexington, KY mayor Jim Gray says he’s moving forward to give his city a big gig push. 

Austin, MN’s Vision 2020 group is studying how it can get its own gig, after being passed over by Google Fiber three years ago. The Daily Herald’s Trey Mewes reports that the group will be going door-to-door to get feedback about the Gig Austin proposal.

Finally, a recent article in The Advertiser counters some false statements made by a paid muni network hit man. Lafayette Utilities System (LUS) director Terry Huval said a report published by “Reason”, and written by Steven Titch is extremely flawed and biased. 

“Steven Titch, a paid analyst, and formerly a news editor in the telecommunications industry, has been criticizing LUS Fiber and other municipal broadband systems for virtually the past decade,” Huval wrote in response to the report. He takes data and twists it in a way that meets the particular needs of that client,” he said. “The bottom line for us is we are doing well. We are growing every year.”

Chattanooga Profiled in Al Jazeera America

“There are companies that do what we do, but we can do it in hours, and they can take weeks,” said Posey. “Anywhere else, it would take a lot more time and a lot more money ... Chattanooga is essential to our business model.”

Al Jazeera America's Peter Moskowitz recently spoke with Clay Posey, one of the entrepreneurs flocking to Chattanooga for the network. Posey works in one of the startup incubators there, Co.Lab, developing his idea for pre-operative models that allow surgeons to prepare before operating on patients.

While Chattanooga may not be the norm and may not be an easy venture for every municipality, it lifts the bar. From the article:

“Whenever a corporation like Comcast wants to do something like raise prices, we can point at Chattanooga and say, ‘Why can’t we have something like that?’” said Christopher Mitchell, head of the community broadband networks initiative at the nonprofit Institute for Local Self-Reliance. “It establishes a baseline or at least an aspirational standard.”

The article describes lobbying efforts by large corporate providers designed to stop the municipal networks model. Another Chattanooga entrepreneur told Moskowitz:

“Having public or quasi-public Internet service providers is a good solution to consolidation because they most likely won’t be sold,” said Daniel Ryan, a local Web developer who helped run the digital operation of Barack Obama’s 2012 presidential campaign. “Do I think if every city did this, Comcast would go out of business? No. But it means there will always be competition.”

Moskowitz included a brief historical summary of the network, its contribution to the electric utility, and the challenges created by state barriers. He included our Community Broadband Networks map.

For more detail on Chattanooga's fiber network, download our case study Broadband at the Speed of Light: How Three Communities Built Next-Generation Networks. The case study also covers the communities of Bristol, Virginia and Lafayette, Louisiana. We also spoke with EPBFiber's Danna Bailey on episode #59 of the Community Broadband Bits podcast.

Gigabit in Lafayette From Community Fiber Now $70/Month

LUS Fiber recently announced it now offers residential symmetrical gigabit services for $69.95 per month when purchased as part of its triple-play. In addition to the new speed tier, LUS Fiber will double speeds for current customers for a modest increase of $5 per month.

Claire Taylor of the Advertiser reports that every customer will see the change except those signed up for the 3 Mbps service designed for lower income customers.

DSLReports quoted Director Terry Huval:

“There’s very few entities in the country that can offer this amount of speed,” says Huval. The decision to roll out the new plan came after a recent test run in which LUS opened up full-speed to check if the system could handle the higher demand. It did, says Huval. "Our system has grown and matured to a point where we can make these types of offers,” says Huval, adding that eventually a similar deal for a Gig-per-second will be offered to commercial customers.

Other options include 20 Mbps for $33.95 per month and 80 Mbps for $54.95 per month. The rate for stand alone gigabit Internet is $109.95 per month.

For the full story on the LUS Fiber network, download our case study, Broadband At the Speed of Light: How Three Communities Built Next-Generation Networks.

We also encourage you to listen to Chris' interview with John St. Julien from Lafaytte. In episode #94 of the Community Broadband Bits podcast, he shares his experience as one of the people spearheading the effort to bring the network to Lafayette.