On the border of Kentucky and Indiana a fight is brewing as AT&T and Google Fiber have both announced plans to bring Gigabit Internet service to Louisville, Kentucky. Home to over half a million, the city could see major economic development with new ultra high-speed Internet access, but there’s a problem: the utility poles.

AT&T is suing the city over a “one touch make-ready” ordinance. On February 11, 2016, the Louisville Metro Council passed the ordinance in order to facilitate new competitors, i.e. Google Fiber. 

Utility Poles: Key to Aerial Deployment

Make-ready is the shorthand for making a utility pole ready for new attachments. Although it may seem simple, this process is often expensive and time-consuming. To add a new cable, others may have to be shifted in order to meet safety and industry standards. Under the common procedure, this process can take months as each party has to send out an independent crew to move each section of cabling. 

To those of us unfamiliar with the standards of pole attachment it may seem absurd, but this originally made sense. Utility poles have a limited amount of space, and strict codes regulate the placement of each type of cable on the pole. Competitors feel they have to fiercely guard their space on the pole and cannot trust other providers to respect their cables. Make-ready must involve coordination between multiple providers and the utility pole owners. For some firms, like AT&T, this is an opportunity to delay new competition for months.

A recent large-scale cross-national study from the Organisation for Economic Co-operation and Development (OECD) offers strong evidence that municipal broadband networks provide numerous benefits for communities around the world. Among the study’s major findings include evidence that municipal networks contribute to efforts aimed at improving local economic development, stimulating business productivity and innovation, and enhancing people’s quality of life.

The study's analysis of European nations is of special interest to us as European municipal networks are the only international municipal networks in the study that closely resemble U.S. municipal networks. In particular, the findings from the study’s central econometric analysis of Swedish municipal networks have direct implications for our understanding of the impact of municipal networks in the United States.

Findings from Econometric Analysis of Sweden

As the researchers note, extensive municipal broadband development across Sweden has contributed to a remarkably high level of nationwide fiber penetration, putting the country far ahead of the US in global rankings. The researchers report a series of features and benefits of Sweden’s widespread fiber penetration and aggressive municipal broadband efforts, including:

Increased rates of employment (with even greater employment increases in highly urbanized municipalities), increased business creation, and reduced car usage (also greater in the most urban cities) as fiber networks make it easier to telecommute to work and to shop for goods and services online.

Chattanooga's EPB Fiber Optics continues to stand out as a model for the municipal broadband movement, demonstrating the extraordinary impact that fast, affordable, reliable Internet access can have on economic development efforts. 

Now, a new research report from the Ewing Marion Kauffman Foundation highlights the network’s vital role in kick starting the development of what has become a thriving “entrepreneurial ecosystem” in this city of about 174,000.

Collaboration, Public Private Partnerships

The report, titled "Little Town, Layered Ecosystem: A Case Study of Chattanooga," credits the EPB network as the “spark” for an explosion of economic development since the network's launch in 2010. As the article notes, the EPB estimates that since the launch, Chattanooga has seen an influx of ninety-one new companies with approximately $50 million in venture capital contributions from six firms. 

According to the report, the network has also encouraged an entrepreneurial climate in this city that had a “long history of collaboration and public-private partnerships” even prior to the network launch. The report cites examples of the city's collaborative spirit in several non-profit entities, city officials, local anchor companies and universities, and the city’s recently opened Innovation District.

Yasuyuki Motoyama, director of Research and Policy at the Kauffman Foundation and one of the paper's authors, explains the lessons that other cities might take away from Chattanooga’s example:

"Chattanooga organized and mobilized its assets to orient itself to entrepreneurial initiatives. This demonstrates what a small-size city can do when factions from different sectors focus on a common goal and collaborate to achieve that goal. This case of Chattanooga provides lessons for other cities to leverage their own unique assets and to create equally successful ecosystems."

Pulaski, located in the area Tennesseans describe as the southern middle region of the state, has a fiber network other communities covet. When we contacted Wes Kelley, one of the people instrumental in establishing the network, he told us that the community always wanted to be more than "just Mayberry." Rather than settle for the sleepy, quaint, character of the fictional TV town, local leaders in Pulaski chose to invest in fiber infrastructure for businesses and residents.

A Legacy That Lives On

The county seat of Giles County, Pulaski has a long history of municipal utility service. The electric system was founded in 1891, and is the oldest in the state. The city also provides municipal water, sewer, and natural gas service. The electric utility, Pulaski Electric System (PES), serves most of Giles County, which amounts to approximately 15,000 customers. PES receives power from the Tennessee Valley Authority (TVA) and then distributes it throughout the county.

Pulaski is now known for its Fiber-to-the-Home (FTTH) network, PES Energize, but the city's first adventure in providing municipal Internet access began in 1993. The city developed dial-up service and within five years, 1,500 homes were using the service. The city abandoned the dial-up service to offer Wi-Fi but then sold that system to a private company.

Preparing PES

Leaders in Pulaski had their sights on connectivity beyond the limits of Wi-Fi. In 2002, Mayor Dan Speer and Dan Holcomb, the New CEO of PES, began exploring a publicly owned fiber network. Holcomb had previously lead a Michigan utility that offered cable TV and so used his experience to help establish the PES Energize network. AT&T (BellSouth at the time) provided DSL service and Charter offered cable Internet access but neither company performed to the satisfaction of the community. In fact, Pulaski had always suffered through poor quality service from its incumbents.

A growing number of electric coops are providing Internet access to residents and businesses in areas of the country where big providers don't offer services. It’s not a big leap because many electric coops already use fiber for communication between electric substations. Expanding in order to offer high quality Internet access is a logical next step.

In Nevada, the Valley Electric Association (VEA) is bringing Fiber-to-the-Home (FTTH) to members in 2016 and helping create new jobs in Pahrump and Fish Lake Valley. The coop's subsidiary Valley Communications Association (VCA), will operate the network.

Details on speeds and rates are yet to be determined, but the coop plans to offer Internet access up to 1 gigabit.

Community Job Creators

Currently, VEA employs 107 full-time staff and has 31 new job openings; they intend to add a total of 38 positions over the next year. The subsidiary VCA employs 10 full time and contract employees and anticipates adding another 50 employees by the end of 2016.

Municipal networks draw in new businesses and bring new life to communities. For instance, the network in Chanute, Kansas, helped draw in a new manufacturing facility with 150 jobs from Spirit AeroSystems in 2012. And in Thomasville, Georgia, the municipal network revitalized the downtown bringing more than 200 jobs to Main Street. With the addition of high-speed Internet access, this community in Nevada is well positioned for economic development.

From Small Coop to Big Dreams

In 1965, the VEA started off as a small rural coop, but now it has expanded to serve over 45,000 people across 6,800 square-miles of service area. Tom Husted, VEA's CEO, expressed his expectations for the new fiber network: 

“It’s going to add jobs, enhance communications and revolutionize Internet service in our territory.”

Starting this spring, the City of Springfield, Massachusetts will offer free municipal Wi-Fi and new dark fiber capacity to a 7-block area of the city’s downtown known as the “Springfield Innovation District.”

As Masslive.com reports, the new dark fiber will create a connection between the city’s Springfield Innovation Center and an existing network of dark fiber capacity in this part of downtown. The publicly owned fiber currently provides gigabit connectivity to municipal buildings but the city will lease out excess capacity. The new Wi-Fi and dark fiber services are part of a broader plan aimed at boosting economic development and innovation in Springfield, the state’s third largest city at 150,000 and the fourth largest city in all of New England. 

The project is phase one of a broader plan to soon expand the network even further in order to reach an additional downtown area and all of the city’s public parks. Springfield’s Chief Information Officer Kevin Kennedy estimates the project’s phase 1 total cost between $50,000 and $100,000. While users interested in connecting to the dark fiber will contract with a private provider for Internet service, the city will be the service provider for the free downtown Wi-Fi.

Preparing for New Tourism, Increased Economic Development, Better Livability

Over the next two years, the city will welcome a new Union Station transportation center and an MGM Casino in the city’s downtown area. With the increased tourism, Kennedy told WAMC Radio that it would be “embarrassing” for Springfield not to have free downtown Wi-Fi.

Delcie Bean, the founder of a Springfield IT company and the creator a downtown-based tech training organization called Tech Foundry, believes the new network capacity is essential to attracting people to work, live, and play in downtown Springfield:

Vernon, Vermont, is a little town in search of a boost to the local economy. The Commons reports that residents formed a Fiber Optic Committee in June and now are exploring the possibility of a municipal network.

First an Idea, Now a Plan

In December of 2014, the Vermont Yankee Nuclear Plant in the town began to shutdown. Over the next few years, as the plant ends operations, it will eliminate a total of 400 jobs in a town of 2,200. Vernon is looking for other keys to economic development.

A local resident came up with an idea -- fiber optics. Vernon's Munson Hicks, is now a member of the 5-person Fiber Optic Committee seeking to find a way to make the idea a reality:

“I couldn’t think of anything that would boost the town more quickly and more securely after the loss of VY [Vermont Yankee Nuclear Plant] than creating our own high-speed Internet” 

The committee has spoken with contractors, and consultants in order to develop a realistic idea of the cost. They estimate a price tag of $2 - 3 million for a Fiber-to-the-Home project. They are considering a consortium model - crossing state lines, with neighboring towns Hinsdale, New Hampshire, and Bernardston, Massachusetts.  

What’s Next for Vernon

The Vernon Planning Commission has not endorsed the plan yet; the Fiber Optics Committee still has a long road ahead of it. They have to confirm community support for the plan and find funding through grants or loans.

At the January 19th community forum, Committee members shared their findings with residents and explained the need for grassroots mementum:

“Really, I think we need to look at this as an economic development initiative for Vernon,” [Committee Member Martin] Langeveld said. “Businesses already need this kind of speed or very soon will need this kind of speed, so having that in town will really be a big plus in trying to get more businesses to locate here.”

The Editorial Board from the Boston Globe recently kicked off a series titled "The Cutting Edge of the Common Good." The editors intend to offer suggestions for how to create a prosperous city through ideas to benefit Boston's 4.7 million residents. 

Their first proposal? Build a municipal fiber network.

In the editorial, the Board point out how the city has always been a cutting edge leader, from Revoluntionary War to same-sex marriage. But when it comes to developing the tech sector, the "City on a Hill" is being edged out by Chattanooga, Lafayette, Louisiana, and Cedar Falls, Iowa. High-tech innovators are flocking to communities with municipal fiber networks.

As the Globe notes, connectivity could be better in Boston:

The truth is that our tech infrastructure is in the same dismal shape as our roads and bridges. Boston, like a majority of American cities, pays more for slower Internet service than our international peers. If Boston is to remain a global hub of innovation — and on the “cutting edge of the common good,” as Mayor Martin J. Walsh promised in his State of the City address last month — it should build a citywide fiber-optic network that allows each residence and business an onramp to the information superhighway of the future.

Even though the city has its own conduit network and significant fiber assets, residents and businesses must seek service from large private providers. The Globe Editors believe the city should rethink the current approach:

But the City of Boston should not gamble its future competitiveness in a Mountain View lottery, nor should it entrust such vital infrastructure entirely to private hands.

The private market would be the ideal solution in an ideal world, but in Boston the market has failed.