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Despite Delays, Dunnellon Builds Muni Fiber in Florida

Dunnellon, a small town in Marion County south of Gainesville, decided to invest in a community fiber network to spur growth and diversify its income stream. Though citizens did not want to cut government services, they have not been pleased at property tax increases.

364 days ago, we published a story discussing their financing.

The town itself is quite small, with 1,733 residents but the network will be serving areas in the County as well. Though AT&T and Comcast offer services in the area, they have big gaps in coverage and apparently the cable television packages are antiquated (only 50 channels???).

An article last year noted Dunnellon's Internet connections will range from 10Mbps to 125Mbps. They hope to sign up 1,647 subscribers within 6 months of launch -- the network is named Greenlight (not sure if they were aware that the city of Wilson, NC, already operates a triple-play FTTH network called Greenlight).

They hoped to launch 6 months ago. Bill Thompson's "Dunnellon dreams of a connectied future," offers a comprehensive look at the promise and the challenges Dunnellon faces.

Dunnellon's city manager comes from Valparaiso, which had a city-owned cable network that upgraded to FTTH. Unfortunately, Dunnellon is in the hard position of building a network from scratch.

logo-valp-net.jpg

Building a new network requires a massive up-front capital investment - in this case the city will have spent $4.4 million to connect the first connection. Good thing they aren't all that expensive!

The article identifies two main sources of the delays: difficulty in getting on the poles owned by Progress Energy and long delays in receiving the fiber-optic cable they ordered (stimulus projects have hogged the supply). Rather than taking 12 weeks, they had to wait 30. Delays cause problems:

The installation delay has put the city in a pinch with its lender, Regions Bank. The city was scheduled in November to pay back about half of the $1.85 million, one-year note it had spent so far.

But with no customers, the city will not be able to do so on time, Algiere said.

She expects the bank to agree to restructure the loan and grant a one-year delay, at the end of which the city will pay the full amount.

The other two loans were to be paid off in five years and 15 years, respectively.

They network will connect schools and muni buildings first -- other subscribers should be able to sign up before the end of the year.

Like so many other communities, many in Dunnellon appear to be looking at Lafayette for inspiration. I certainly hope Dunnellon can get a similar level of citizen engagement, but few have been able to duplicate the impressive work of Lafayette in that regard.

Muni Snapshot: Palm Coast FiberNET

Publication Date: 
June 1, 2011
Author(s): 
Masha Zagar
Publication Title: 
Broadband Properties

We noted Palm Coast FiberNET when it opened for business but haven't had a chance to revisit it until now. Broadband Communities has featured it with a Muni Fiber Snapshop in the 2011 May/June issue.

The network, available for business use in some areas, has 22 customers, including the city's largest employer. Without this muni investment, that employer would have had to leave town due to the non-competitive alternatives from incumbent providers. Two service providers operate on the muni network, offering data and voice services as well as computer backup.

Schools and medical facilities are also benefiting from much lower prices for the telecom services they need.

The Broadband Jungle of Marketing, Hype, and Lies in Volusia, Florida

I have little to add to the excellent work done by Stop the Cap! calling out Bright House for their many misleading and false claims, some of which came up in a story about the Daytona Regional Chamber of Commerce pushing Volusia County to investigate an investment in fiber-optics to help local businesses.

Of course Bright House said it would be unnecessary because they already offer everything anyone could ever want from a broadband connection. Absurd.

Karl Bode also weighed in - this is a good example of the misleading claims communities can expect when they start investigating broadband -- particularly if they may do anything to threaten the cable/phone duopoly that has so underinvested in broadband across the U.S.

Martin County Explores Uses for Network It is Building

Martin County, Florida, is building a county-owned network (that we wrote about back in September) in response to gross overcharging by Comcast for the connections they need to connect their City Departments.  

The County Commission voted unanimously Tuesday to allocate $100,000 to pay experts to advise county officials about ways the new broadband network the county government is constructing could be used to generate revenue as well as promote economic development and job creation.

...

Precision Contracting Services of Jupiter started construction on the $4.2 million network in January and is expected to finish the project by January 2012. The network is expected to serve 280 government, public safety, educational and health care organizations.

Having committed to building a network to meet their own needs, they are now searching for ways to leverage that investment to best meet community needs.  They will evaluate laws, conduct a survey of residents and businesses to find what their needs/desires are, and possibly develop a business plan.  

Last Monday, the day before the planned vote, a Comcast regional VP had the gall to ask the County Commissioners to delay their vote.  No thanks Comcast, these folks have waited long enough for the broadband they need, that you have no interested in delivering in a timely nor affordable manner.  On Tuesday, the Council voted unanimously to approve the contract.  

Good for them.

Sarasota, Florida, Recognizes Need for Better Broadband

Another community in Florida is considering a community broadband network as a solution to its need for faster, more reliable broadband than incumbents offer.

The City formed a commission and created a white paper discussing the problem and potential solutions (referencing the success of Chattanooga and Lafayette). It recognizes broadband as a key infrastructure.

The report lays out a range of options for the city: from doing nothing and letting the market determine Sarasota's broadband future; to partnering with a private entity in building a network that would increase speeds; to tapping a public project already in the works that could create a powerful Internet backbone between Manatee and Sarasota counties.

We recently reported on another community, Dunnellon, that is building a community fiber network. Unfortunately, these communities have to deal with unnecessary barriers created by the Florida Legislature as they invest in the future of their community.

Photo used under Creative Commons License, courtesy of 83d40m

Florida Muni Dunnellon Building FTTH Network

Yet another town has decided to take responsibility for their broadband future: a small Florida community has secured financing and is moving forward with their publicly owned FTTH network.

The City Council voted unanimously Monday night to approve the $7.3 million in funding with Regions Bank in Orlando. City Manager Lisa Algiere told the council members the city would be doing most of its business with the local Regions Bank.

The funding will come in the form of three bonds: a series 2010A Bond, which is good for 20 years and has an interest rate of 3.61 percent; the second bond is a Series 2010B Bond and is for five years with an annual interest rate of 3.20 percent; while the third bond is a Series 2010C Bond and is good for one year. The funding secured by the city is a drawdown loan, meaning it will only take what it needs and only repay that portion.

The network has been branded Greenlight (though the website is not yet fully functional). Greenlight is also the name used by the Community Fiber Network in Wilson, North Carolina.

Light Reading interviewed a network employee, shedding more details than have been released elsewhere.

He says they are passing 7,000 premises, but Wikipedia only notes a population of 2,000 in 2004, so there is more than meets the eye at first glance. They financed the network without using general obligation bonds, working with a nearby bank (Regions is a big bank, headquartered out of state).

Local competitors are AT&T and Comcast, though both offer extremely slow services; the fastest downstream speed available from Comcast is 6Mbps. The new network, as do nearly all recent community fiber networks, will offer much faster connections, the slowest being 10Mbps.

This is a good sign that communities in Florida can still move forward despite the many artificial hurdles Florida state law created to benefit incumbents by restricting competition from the public sector.

Smart Grid Updates - Chattanooga and Ponca City

Communities with both smart-grid investments as well as community networks are again in the news, this time featuring Chattanooga, Leesburg, and Ponca City. Thanks to my colleague at EnergySelfReliantStates.org, who posted this item. ESRS publishes original content about decentralized renewable energy - mostly of a quantitative nature using charts.

Perhaps one of the reasons the broadband networks run by public power utilities are so much more reliable than those run by telco and cablecos is the many decades that public power companies have focused intently on reliability.

Reliability is a good economic development tool, he said. One business looking at Chattanooga asked about the cost of a redundant feed. After EPB explained its smart grid plans, the company chose Chattanooga and decided it didn’t need a redundant feed, he said. In talking to businesses, "I can tell you ... that they get it and they get the importance of this level of automation."

The article offered more details about Ponca City's wireless network that we had previously not discussed. In addition to offering free Wi-Fi to residents, the Ponca City offers fiber-optic-based broadband to local businesses... and two are quite connected.

Perhaps the most eye-opening benefit is that Ponca City offers all of its 26,000 citizens free WiFi service. The city uses its fiber network to sell broadband services to businesses (one has requested 300 mbps service) and those sales pay for the free WiFi, Baird said. The network is basically support-free, said Baird, adding that he gets one or two calls per week. And the free WiFi is "a huge economic development draw," he said.

Herald Tribune Series on County and Community Networks

A few weeks ago, the Herald Tribune ran a number of articles about broadband by Michael Pollick and Doug Sword that discussed some community fiber networks and efforts by Counties in Florida to build their own fiber-optic networks.

The first, "Martin County opting to put lines place," covers the familiar story of a local government that decides to stop getting fleeced by an incumbent (in this case, Comcast) and instead build their own network to ensure higher capacity at lower prices and often much greater reliability.

Martin County, FL

"We decided for the kind of money these people are asking us, we would be better off doing this on our own," said Kevin Kryzda, the county's chief information officer. "That is different from anybody else. And then we said we would like to do a loose association to provide broadband to the community while we are spending the money to build this network anyway. That was unique, too."

The new project will use a contractor to build a fiber network throughout the county and a tiny rural phone company willing to foot part of the bill in return for permission to use the network to grab customers of broadband service. The combined public-private network would not only connect the sheriff's office, county administration, schools and hospitals, but also would use existing rights of ways along major highways to run through Martin's commercial corridors.

Michael Pollick correctly notes that Florida is one of the 18 states that preempt local authority to build broadband maps.

However, they incorrectly believe that Martin County is unique in its approach. As we have covered in the past, a number of counties are building various types of broadband networks.

This is also not the first time we have seen a local government decided to build a broadband network after it saw a potential employer choose a different community because of the difference in broadband access.

From there, Michael Pollick and Doug Sword team up for "County faces a fiber-optic opportunity" discussing Sarasota County. Here, the original thought was to use fiber to coordinate traffic lights but they will use extra capacity for economic development.

Sarasota County, FL

The local government uses a Comcast I-Net but that is not available to businesses who are stuck with overpriced and underpowered connections from incumbents:

"Businesses upload stuff, while consumers download," said Rich Swier Jr., who works from a Central Avenue office where the only service comes from Comcast. Swier, the only entrepreneur on the Sarasota Broadband Task Force, is not happy with what he gets from Comcast. "They are repackaging a consumer grade service as a business service and charging three times more."

Swier is paying about $200 per month for what is supposed to be 50 megabits per second download and 5 megabits up. But in reality, it operates at half those speeds, he said.

For the time being, it appears that the county is mostly focused on some form of dark fiber approach using the conduit it has been opportunistically placing over the past 10 years.

Doug Sword wrote, "Municipalities butt heads with telecom companies," a look at Wilson's Greenlight network . It also covers the moaning of Fortune 500 company Time Warner Cable, which apparently is somehow at a disadvantage against a small city. (A reality check on TWC's claims about pole attachment fees.)

Wilson's decision to go into the broadband business was also spurred by the city's need to make up for the near demise in the 1990s of a pair of mainstay industries, textile and tobacco. The feeling is that whatever the city's economic future holds, having ultra-fast broadband will help it get there.
"The way we see it, you're going to have haves and have-nots in the next generation broadband world," Bowman said. "The fact is we wanted to invest in our own future; that's why we did this."

And finally, the Pollick / Sword duo discussed Lafayette's successes in "Dark lines are a draw for business." They note another economic development win for LUS Fiber:

Pixel Magic has since decided to maintain an office in Lafayette and plans to eventually employ 100 to 200 people there.
“The fact that we have the high-speed Internet between here and there is a big plus so we can show the clients the work in progress — production companies and studios,” said Ray Scalice, Pixel Magic's general manager.

Before picking Lafayette, Pixel Magic “was looking at New Orleans and found this was just a better deal and the fiber had a lot to do with it,” said company spokesman Patrick Flanagan. “Downloading a film frame, we are getting speeds of two, three seconds per frame.”

This is a good series of articles at accurately shows the total disconnect between what private companies are offering for broadband (they keep claiming we do not need anything better) and what forward-thinking communities are doing to take advantage of the disconnect.

Palm Coast FiberNET Opens for Business

The nation's newest open access network opened for business this week - Palm Coast FiberNET in Florida. This network is intended to serve businesses and is not currently a FTTH build. The network uses the City of Palm Coast's fiber assets:

The City of Palm Coast is making its high performance fiber network available for business and commercial use in Palm Coast. The goal of this effort is to create business opportunities for private sector service providers, lower the cost of telecom and broadband for local businesses, and to help attract new businesses and job opportunities to the City. Broadband connections to businesses will provide Internet access, a wider variety of telephone, videoconferencing, and other business class services.

The opening ceremonies (a cutting of the fiber) were covered on Office Divvy, who noted that the network currently has two providers and a plan to connect most businesses in town over the next two years. Services to their facility will be up in early June.

This is a similar approach as used in several networks in Virginia, including the Wired Road, and nDanville. Rather than trying to build citywide all at once, these networks expand as opportunities arise and funding is available.

Clarification: The City has already expanded its fiber assets to create this network; the post should not be read as the City merely leasing fiber it already had.

Missouri's Consultant, Competition Spurs Investment, and Maine's Middle Mile

  • A columnist explains why Missouri hired broadband network consultant Jim Baller to aid in expanding broadband across the state.

    That won’t be easy. Fewer than two-dozen cable and telephone companies control more than 95 percent of the country’s residential broadband market. In the past decade, the “incumbents” have shut out competitors by restricting the use of their existing infrastructure and by suing any municipality or public utility that has tried to build its own network.

    This piece offers some good history for those relatively new to community broadband.

  • Mike Masnick over at TechDirt recently asked (ironically) "But Wait, Wasn't Muni-Fiber Supposed To Take Away Incentive For Private Fiber?"

    Over the past few years, there have been numerous lawsuits by telcos against various municipalities that have decided to launch municipal fiber broadband projects. Most of these lawsuits have failed -- but the main argument from the telcos is that it's unfair to have to compete against the government, and it would take away incentives for the telcos to actually invest in infrastructure to provide for those towns. Of course, that doesn't make much sense.

    This article otherwise rehashes the Monticello post we recently ran.

  • In Maine, Fletcher Kittredge makes the case for a public-private partnership to bring affordable middle-mile access around the state. These ultra-fast connections would not connect directly to home users, but will be open to providers creating those last-mile networks. In the meantime, it will strengthen community institutions like the University of Maine system. This is a project that should be funded by the stimulus program.

  • Though the story has disappeared behind a pay-wall, the Polk County Democrat recently noted that they lack high speed Internet in the 16,000 person community. The solution may be a publicly owned network:

    Lack of high speed Internet access is a major problem for several tenants, and may make it difficult to recruit tenants to fill the 18 vacant buildings in the industrial park, she said.

    She suggested that the city offer Internet access just as it does water, sewer, and electric service.