The following stories have been tagged new england ← Back to All Tags

Isleboro, Maine, Will Vote to Bond for Municipal Network in May

Isleboro, the Maine island community of 566, will decide in May whether or not they want to bond to build a municipal fiber network, reports The Working Waterfront. The network will be owned by the town who plans to partner with GWI to operate and manage it. 

Currently, about 2/3 of residents on the island use DSL from Fairpoint. While a few locations can reach 15 Mbps download, most residents pay from $20 - $70 for around 3 Mbps download. Upload speeds are much less. GWI also offers point-to-point wireless from the mainland and one side of the island has cellphone.

The firm estimated costs to cover the island to be between $2.5 and $3 million, which would include construction and leasing of poles from Central Maine Power (CMP).  Community leaders will ask voters to approve a municipal bond to fund the project:

The $3 million bond would raise property taxes on a house assessed at $300,000 by about $13.77 per month ($164.25 per year). As a per-month cost, with both the pay-back on the bond and the standard service fee for Internet, the resident of a house valued at $300,000 would pay $48.77, according to [Arch] Gillies, [chairman of the Board of Selectmen]. (This appears to be for the lowest level of service.)

In 2012, the community formed a Broadband Working Group to dig deeper in to the state of broadband on the island and search for ways to improve it. The community hired a consultant to do an assessment and make recommendations. Traditional large scale providers do not find the community ripe for investment with its small number of households.

After reviewing the recommendations, community leaders decided it was in the community's best interest to deploy a network that would be owned by the public. They then engaged in a Request for Information process and received responses from three vendors. Eventually, they chose to work with GWI, in part because it is a local company. Fairpont and Time Warner Cable also responded, but their proposals did not stipulate that the infrastructure would belong to the town. There were other inferiorities in their proposals.

Community leaders have determined that they will need approximately 50% of the community to subscribe in order to cover the operating costs. They also hope that, with more subscribers, they can reduce the prices below the proposed rates. At this time, they anticipate offering service at $35 per month for 3 Mbps/1 Mbps, $75 per month for 500 Mbps symmetrical, and $125 per month for gigabit service. 

If voters approve the bond issue at the annual town meeting on May 9th, they will be asked to commit to a level of service in order to accurately assess the project's viability. If there is not a 50 percent commitment, the town may not proceed with the bond issue. If the bond is approved and sign-ups suggest a favorable future, construction would begin in the fall.

City Council Moves Forward on Muni Project in Ellsworth, Maine

The Ellsworth City Council voted on February 9th to proceed with the first steps to developing yet another municipal fiber network in Maine. Community leaders plan to develop open access fiber infrastructure. Five ISPs have already expressed an interest in working with the city to provide services via the network.

Ellsworth is home to approximately 7,500 people and is located along the south not far from the central coast.

The Ellsworth American reports that council members decided unanimously to lease a parcel of land on which to place a headend facility. The Ellsworth Business Development Corporation (EBDC), which also obtained a $250,000 grant to expand high-speed Internet in Ellsworth, will lease the property. The grant came from the Northern Border Regional Commission in 2014.

The Council also agreed to commit $28,445 in tax increment financing (TIF) funds toward the project. Those funds will be used for the headend building and to install a two mile stretch of fiber to tap into the community's abundant fiber resources. Community leaders want to create options for local businesses and the numerous home based businesses in Ellsworth.

“You have the superhighway already,” said Andy Hamilton, an attorney with Eaton Peabody who serves as legal counsel to EBDC. “But you need the off-ramp and the local roads to take you to the office buildings.”

Indeed, a report from Portland-based Tilson Technology Management said Ellsworth is located at “an information superhighway crossroads” and that it has a lot of fiber optic infrastructure — “more than most Maine communities.”

The network project is being developed in conjunction with a business incubator project in Ellsworth. Biotech and health science related businesses are abundant in the region and city leaders want to make the city attractive to the industry.

Council members are also considering the long term:

Lili Pew, a real estate agent who heads the EBDC broadband committee, pointed out many people have home-based jobs or businesses. She said the number one question she hears from her clients looking at Ellsworth is, “Do I have access to high-speed broadband?”

Running fiber lines to every residence in Ellsworth would be cost-prohibitive — in the range of $8 million to $12 million, according to Tilson — but there are other ways to reach parts of the city that Pew said are “in the black hole of technology right now.”

“This is more important to have in the city than natural gas, right now,” he said, referring to higher-speed Internet. “This is a utility that is really going to help us get ahead.”

Massachusetts Towns Consider WiredWest Opportunity

Eleven Select boards in Franklin County are ready to take the next step with WiredWest Cooperative. According to the Recorder, the towns of Ashfield, Charlemont, Colrain, Hawley, Heath, Leyden, New Salem, Rowe, Shutesbury, Warwick and Wendell have all approved nonbinding resolutions taking them into the financial planning phase.

Last fall, the organization and the Massachusetts Broadband Institute (MBI) agreed to meet on a regular schedule. The two organizations began meeting with town Select Boards in order to update them on financial obligations to help them decide whether or not to participate.

WiredWest Cooperative has worked with The Western Massachusetts Legislative Delegation On The Last Mile Broadband Solution to create a strategy to improve connectivity statewide. In addition to WiredWest, the group included MBI, the Franklin Regional Council of Governments (FRCOG), and the Mass TechCollaborative. Several state lawmakers, including Senator Stan Rosenberg, participated in the delegation.

The state will supply approximately $40 million in grant funding to MBI, that will disburse the funds, to defray the costs of deployment in hill towns. The Recorder reported:

[Monica] Webb, [speaking for WiredWest Cooperative] said the first thing town officials want to know is how much of that $40 million grant will be available to reduce their town’s share of the cost.

“The first step was to determine which towns want to participate,” said Webb. “Now that we know, there’s detailed engineering to be done. ... The numbers the towns will get will be our best estimate. We’re still refining our best estimates, but I expect that will be done over the next month.

“Towns have told us they need that information as soon as possible,” she added. “We’re working to make that happen.

“The other thing we’re going to focus on, over the next months, is a pre-subscription campaign. We won’t build out (the fiber optic network) in a town until the town has at least 40 percent (of its subscription base), who have signed up and given a deposit.”

Webb said pre-subscribers will be asked to pay a $50 deposit, which will go into an escrow account; once the town is wired, that deposit will be used to reduce their first Internet service bill.

The cooperative has more than 40 member communities. Their pre-subscription campaign will begin in late January. In February and March, WiredWest and MBI will hold informational meetings with local officials and work on business and operational plans.

As WiredWest makes its way across Massachusetts, local communities are deciding whether or not to invest to take advantage of the new connection to the big pipe that is MassBroadband 123. Leyden, population approximately 700, will vote at its annual spring town meeting whether or not to work with WiredWest to deploy fiber in Leyden.

A December article in the Recorder reported that the Selectboard voted to support the measure which would require a two-thirds vote at the annual town meeting. A debt exclusion vote will be held if that measure passes and requires a majority vote. The debt exclusion will allow Leyden to borrow in order to fund the municipal build out.

The current estimate for a network in Leyden is between $900,000 and $1.77 million. The most recent decision by the Selectboard will allow MBI to develop a more accurate plan and detailed estimate according to the Recorder.

Part of Leyden has DSL service but a 2012 WiredWest survey indicated that 56% of Leyden residents were interested in better connectivity. Popular opinion in Leyden among locals is that lack of fast, affordable, reliable connectivity scares away potential home buyers and new businesses. Al Woodhull, Leyden's alternate WiredWest delegate told the Recorder:

A new DSL connection was one of the reasons Woodhull bought his home five years ago.

“The house had been on the market for several years, and the previous owner had been very pleased to get DSL, because she hadn’t been able to sell the house without any kind of high-speed Internet,” he said.

Elected officials in these smaller communities have tossed around the investment for months. Few of these small communities are accustomed to such large investments and political leaders understand the risk aversion. From a November Recorder article:

“I don’t think this is a hard sell for a finance committee, but I think it’s a terribly hard sell for a town meeting,” said Charlemont Finance Committee member Toby Gould. “Unless marketing comes up with proposals that are easily understood, they won’t buy it. ... They have to be convinced this project is worth investing in.”

Local channel WWLP spoke to Leyden residents in December [video below]:

James Finney has lived in Leyden over a decade and would welcome high speed internet access. He said, “If all the other places in the county are getting the high speed and we’re back in the older technology, it certainly is going to diminish the chances that we’re going to be able to attract the businesses and the educational opportunities that are out there.”

ECFiber and ValleyNet Seek Managing Director

Recently, we reported that ECFiber in Vermont plans to expand in the near future. To fund that expansion, the consortium will seek out new, larger scale funding to meet the increased demand. ValleyNet, Inc., the company that manages the FTTH network for ECFiber is now searching for a Managing Director. The full posting is listed below and can be viewed at the NTCA Rural Broadband Association Job Center.

In keeping with the community goals of the network, we found value in this particular specification:

Community Foundation: In view of the above, the MD must fully appreciate and embrace the concept of a community-owned public utility and be able to relate successfully to:  the individual towns; their governing bodies (“Select Boards”); the ECFiber Governing Board and its members; and with the citizens themselves.  Although ECFiber is required by law and constitution to be entirely self-supporting and to “pay its own way”, it is not a purely “profit-maximizing” institution.  Balancing the needs of the community with the commercial discipline required to fund all its activities without resorting to taxpayer funding sources is a basic requirement of the MD’s position. 

ECFiber Continues to Grow; Plans to Expand in 2015

In early December, the East Central Vermont Community Fiber Network (ECFiber) announced that it is once again expanding, bringing the network to 200 miles by the end of 2014. According to the press release, the network will reach into an additional 8 towns in 2015, in part due to dark fiber deployed in cooperation with the Vermont Telecommunications Authority.

From the press release:

 “We’re pleased that residents of these areas are now able to enjoy the benefits of locally grown, full time, state-of-the-art real broadband,” said Irv Thomae, Chairman of ECFiber and Governing Board delegate from Norwich.

Over 400 households have invested in the network thus far, but Thomae goes on to note that the consortium will pursue larger scale funding in 2015 in order to obtain the necessary funds to expand at a quicker pace. Currently, local investors fund the network by purchasing tax-exempt promissory notes.

Subscribership has continued to climb. Last spring, we reported on the 600th sign-up but now ECFiber is at nearly 1,000 customers. There are currently 24 member towns in the consortium. 

Community Broadband Media Roundup - December 19

This was a big year for local governments and many year-end discussions have noted the role of cities in expanding high quality Internet access. Among them, The Free Press' Timothy Karr:

The rise of homegrown Internet infrastructure has prompted industry lobbyists to introduce state-level legislation to smother such efforts. There are at least 20 such statutes on the books. But in June, the FCC stepped in with a plan to preempt these state laws, giving communities the support they need to affordably connect more people.

and Broadband Breakfast's Drew Clark:

...viewed from the vantage point of the future, the far more significant development will be the emergence of opportunities outside of Washington for high-capacity broadband networks. It’s a world in which cities and municipalities are playing the leadership role...

The most direct crystallization of our municipal broadband moment is the new non-profit coalition dubbed Next Century Cities. Launched less than two months ago in Santa Monica, it now boasts membership from 50 cities, representing 25 states. From Los Angeles to communities along the Pacific Northwest, from Lafayette in Cajun country to Chattanooga, and from patrician Boston to a city that got its start as a cow town, Kansas City, each of these 50 cities have different motivations and approaches to Gigabit Networks.

Almost 60% of the United States has access to 100 Mbps Internet connections, but only 3% can get a gig. Ars Technica's Jon Brodkin and Anne L. Kim from Roll Call both take a look at a new report from the Department of Commerce this week. 

The ESA report titled, “Competition Among U.S. Broadband Service Providers,” finds that far more competition exists at slower speeds than at higher speeds (only 8% can choose from at least two 100 Mbps providers.) 

"This report gives policymakers a deeper understanding of what is occurring in the ISP marketplace," says U.S. Commerce Department Chief Economist Sue Helper. “We know that competition typically drives down prices. And we also know that increasingly, higher Internet speeds are required for optimal functionality of popular, high-bandwidth computing applications. As more and more commerce and information move online, we risk further widening the digital divide if access to affordable, higher speed Internet doesn’t keep pace.”  

Anders Bylund with Motley Fool posted an article this week about why AT&T might nervous about the days to come. Bylund asks whether municipal broadband projects like those in Chanute, Kansas, and Google Fiber’s entry into the market are rendering AT&T obsolete. 

“You might think that AT&T would shrug its shoulders over new competition in such a laughably small market. But the company sees this as the beginnings of a much larger threat: Allow one high-sped service at incredibly low prices, and other cities will surely follow. Soon enough, this tiny insurgent will have turned into a nationwide trend, putting enormous pressure on AT&T's existing business model.”

Small towns, larger cities, counties and cooperatives all over the United States are catching on. 

In Renville, Nicollet and Sibley Counties in rural Minnesota, residents have a lot to look forward to in 2015. Cassandra Sepeda with KEYC Mankato reported on RS Fiber’s growing momentum. The fiber-to-the-home initiative could reach more than 6,000 residents by 2016. The groups financial planner, and local business man, Phil Keithahn works from home and is definitely on-board:

"...That's what this does. It levels the playing field for people who live and work in rural America with people who are in the twin cities. So it's an economic development tool for south central Minnesota."

In Virginia’s rural Bedford County— a cooperative partnership could soon connect thousands of homes. Last week the county’s board announced they would collaborate with Mid-Atlantic Broadband Cooperative to get high speed Internet in the area.

“[Internet infrastructure] is a public utility build-out — the biggest one so far in this century — and it’s pretty much equal to the rural electrification that happened at the turn of the last century,” said Allen Boaz, who presented the advisory proposal to the supervisors.

“That’s how important I believe it is, and a whole lot of other people are with me.”

The county’s economic development director says that residents might be connected within six months.

And, speaking of development, 10 Connecticut communities are rolling forward with high speed Internet goals in mind. According to Brian Fung with the Washington Post, half of the state's population could some day be wired for high-speed, fiber-optic Internet. Stephen Singer with the Associated Press writes that while the cities have committed to wanting businesses to build and finance Internet service, they don't want to get into the business themselves: 

Among the goals are to create a gigabit-capable network for targeted businesses and residential areas with a "demonstrated demand" to drive job creation and stimulate economic growth. The call [out to a business or partner] also seeks to provide free or heavily discounted Internet service of between 10 and 100 megabits to underserved and disadvantaged residential areas and deliver gigabit Internet service at prices comparable to other gigabit fiber networks in the United States.

Students in South Bend, Indiana are now fiber-connected. Metronet's grant program helped pay for the high-performing school to connect to Metronet's dark fiber network. Before the upgrade, students often had to do their Internet research from their own homes. 

McHenry County’s Northwest Herald, and Charleston, South Carolina’s The Post and Courier, put their support behind competitive Internet this week. In Charleston, the paper threw down on South Carolina’s 2012 law that prohibits public networks, saying that the state cannot afford to continue to be left behind in terms of speed and connectivity: 

“South Carolina communities with limited or inadequate bandwidth access stand virtually no chance of attracting industries that increasingly rely on high speed Internet connections to do business. Gov. Nikki Haley's record on job creation is strong, but her decision to sign the 2012 bill dealt a serious blow to the state's ability to attract investments.

Perhaps regulating the Internet under a labyrinthine federal communications code would indeed slow innovation and hurt the economy. But preventing competition - the inevitable effect of South Carolina's law - can be equally harmful.

Companies like Comcast, Time Warner and AT&T operate like monopolies in too many markets, and monopolies require rules to prevent actions that harm consumers and other businesses.”

The Star Tribune and MSP Business Journal are reporting that Chaska’s city-owned Internet service will be switched off next year. The city opted out of the wireless Internet offerings rather than pay the $3 million to upgrade. Since it launched in 2004, the city has seen a rise in competition, with more providers offering service. 

“We never wanted to compete with the private sector,” Podhrasky said. “We just wanted to make sure our residents had access to [wireless Internet] until there were more options out there.” He said the city concluded the time has come, with people now having a variety of choices, including bundled services at high speeds through cable modems at prices close to chaska.net’s."

The city will continue to provide its fiber service to the school district and one data center.

And Susan Crawford came out another good piece: “The 3 Big Myths that are holding back America’s Internet.”

TING!

Charlottesville, Virginia could soon be home to what one alternative wireless carrier calls, “Google Fiber lite.” Ting announced this week they will build their own 1Gbps fiber-to-the-premises when they purchase Blue Ridge InternetWorks to serve Charlottesville customers— and, as Sean Buckley with Fierce Telecom reports, they don’t plan to stop there. 

"We'll be on the lookout for the next town or city in which we can lay down roots," wrote [Andrew] Moore-Crispin, [senior content manager at Ting.] “Roots made of fiber optic cable and ultimately leading right to the home. If you'd like to see Ting Internet in your town, let us know on the Ting Internet page… We admire what Google is doing with and for gigabit fiber Internet access, but for the Internet giant, access is more of a side project," wrote Moore-Crispin. "Also, Google is a lot of great things but human scale isn't one of them."

Jason Koebler with Motherboard covered the story as well

"When we got into mobile, we just took the same business processing and billing and applied them to mobile, which was suffering from incredibly high pricing and a low level of service," he added. "We thought, where else can we take these things we've gotten good and apply them to?"

Hypocrisy Department

And Time Warner Cable is fighting to keep its Broadband expansion projects private.

"'As outlined in our appeal, disclosure of Time Warner Cable build-out plans, including details like completion dates and the areas and number of potential customers served, would clearly harm our competitive position,' Time Warner Cable spokesman Scott Pryzwansky said Monday."

Time Warner Cable and other private providers regularly demand this information from local government providers. This is a frank admission that local governments operate from a position of disadvantage relative to private sector providers.

Princeton Voters Authorize FTTH Make-Ready Funds in Record Turn-Out

On November 18th, 90% of voters at Princeton's special town meeting approved a measure to fund $1.2 million in make-ready costs bringing the community one step closer to fiber connectivity. The number voters who attended the meeting broke the previous attendance record set 15 years ago by 30%.

We introduced the central Massachusetts town of 3,300 in 2013. The community suffered from poor Internet connectivity negatively impacting its schools, real estate market, and economic development. Since then, the community voted to create a Municipal Light Plant and to appropriate funds to keep the project moving forward.

Community leaders have investigated several options and last fall entered into a relationship with the Matrix Design Group. According to the Memorandum of Understanding [PDF], Matrix will design, build, and operate the FTTH network for a period of 20 years. At the end of that time period, Princeton Broadband Municipal Light Plant has the option of renewing that relationship or purchasing the network for $1.

As their contribution, Princeton will provide rights-of-way, police details during construction, powered telecom shelters, and will pay for utility pole make-ready costs. According to an article in the Landmark:

The make ready work includes replacing approximately 80 utility poles, and moving telephone and electrical lines on 450 poles, providing housing for the electrical components needed to operate the system, and paying for police details during the make ready work.

The borrowing is expected to cost the owner of a home valued at $300,000, about $10 a month or $115 a year increase on their taxes for 12 years. Internet service plus telephone will cost $115 a month. Once a contract is negotiated with Matrix, construction on the make ready phase would start in January 2015 and the project would be completed by January 2016.

It looks like the network will offer Internet connections of 30-50 Mbps; currently options for residents vary from an average 1 Mbps download over Wi-Fi to 1 - 3 Mbps download DSL. According to the PrincetonBroadband.com summary of the deal, 4G LTE in town ranges from 2 - 18 Mbps download. It is not clear if people can purchase a connection faster than 50 Mbps with the current plans.

Princeton Broadband Logo

Preliminary subscription rates are $95 per month for Internet and $115 per month for Internet and voice; video will not be offered. The prices are comparable with what some Princeton residents pay now for much slower "up to" speeds though some do pay less for DSL currently. More detailed info on subscriber costs is also available on the PrincetonBroadband website.

Residents who subscribe during the initial fiber hookup will pay an early discounted installation fee of $250 - $350 if the house is within 250 feet from the road. Early subscribers are committing for two years from the date the network is live. Customers who subscribe later will pay $1,250 - $1,550 to connect.

In compliance with state law, the community must hold a second vote to approve a Proposition 2.5% debt-limit waiver. The town will need to pass the measure by a majority, at which time it will be able to proceed with funding for the make-ready costs. The second vote is scheduled for December 9th. Leverett went through a similar process.

While Princeton's approach minimizes financial exposure, they still carry some risks associated with private ownership of the infrastructure. The network could be sold to a different provider, for instance. From the PrincetonBroadband website:

But we should all be very careful with basing our vote on quibbles with the plan or dreams of a knight in shining armor just around the corner. There are no Plan B’s. There are no other suitors waiting in the wings. Comcast, Charter, and Verizon have even gone so far as to formally decline an offer to come into town. And, doing it ourselves would cost taxpayers over three times more than the Matrix plan would.

Compared to any imaginable alternative, the Matrix plan significantly reduces our tax burden, minimizes our town’s risk, maximizes services to the entire town (not just the most densely populated areas), and is future proofed for generations to come.

Princeton Voters

Voters at the November 18th Town Meeting display pink cards that represent their approval of the Princeton Broadband project. (Thank you to Stan Moss for the photo.)

Muni Fiber in Rural Massachusetts - Community Broadband Bits Podcast 113

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

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

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

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

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

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 18 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Chris Mitchell In Burlington, Vermont on September 19th

Members of the Burlington community are hosting a luncheon on Friday, September 19th, to discuss ways to help keep BT local. Chris, as one of the leading experts on municipal broadband, will be leading the discussion. We have followed BurlingtonTelecom's challenges and victories since 2008.

The event is titled "How Do We Keep Burlington Telecom Local?" and will be at the CCTV Center for Media & Democracy in Burlington. From the announcement:

Many Burlington residents and activists are concerned about the City of Burlington’s plans to sell Burlington Telecom to a private entity by 2017. While the City is committed to BT as a driver for economic and community development, it currently has no specific plans to retain a meaningful ownership stake in the new entity. 

The event is part of a series of community talks aimed at maintaining public input as the City prepares to move forward. 

A free discussion will begin at 11 a.m.; it will be followed by lunch for $15. You can now register online. For those who want to learn more about the network and keep up on the latest developments, CCTV of Vermont has put together a resource page detailing upcoming steps with news coverage, video, and court documents. 

ECFiber Welcomes 600th Subscriber

The East Central Vermont Community Fiber-Optic Network (ECFiber) recently connected its 600th customer. The network continues to connect to additional homes and businesses, recently reaching Royalton. According to the Valley News, the network will extend to over 200 miles by the end of 2014, passing more than 2,000 homes and businesses.

The story notes that the Vermont Telecom Authority's Orange County Fiber Connector, a dark fiber project running through Orange and Windsor Counties, facilitated the expansion. From the article:

“In addition to offering us the possibility to connect more than 500 homes and businesses along the route, the (Orange County connector) will enable the interconnection of our remote hubs, allowing us to purchase more bandwidth and offer higher throughput to our subscribers,” said Stan Williams, chief financial officer and interim chief executive officer of ValleyNet, the Vermont nonprofit charged with operating ECFiber.

ECFiber sells tax-exempt promissory notes to local investors to fund the network. The coalition of communities that participate in the network now number 24. The Valley News also reports that the new CEO for ValleyNet will be Tom Lyons, formerly of Sovernet. Lyons replaces Tim Nulty, who recently retired.

Leslie Nulty, one of the network's champions, talked with Chris in episode 9 of the Community Broadband Bits podcast. She described the ECFiber model and shared the history of the network.