massachusetts

In Massachusetts, Wired West Builds Momentum

The end of June brought an end to an initial phase of the Wired West campaign for real broadband in rural Massachusetts. When we previously looked in on the Wired West efforts, they had 39 towns supporting the idea.

By June 26th, that number had grown to 47.

The local paper outlined the overwhelming support and next steps.

Once the non-profit has been formed, financing options would have to be identified, and preliminary design and cost estimate work would start.

None of the cost of the project would be borne by the towns, Webb said.

Ongoing maintenance cost and debt service payments would come from money paid to the agency by the service providers, added Andrew Michael Cohill, president of Design Nine, a consultancy hired to help WiredWest through the next phase of development.

A previous article discussed a cost estimate of the network and how much money residents send outside their community for service.

Monica Webb, a spokesperson for WiredWest, said that a consultant who met last year with representatives from Mount Washington and 10 other towns in southern Berkshire County estimated the cost of building a fiber-optic network for that region at $27 million.

But, Webb said, the consultant calculated that the roughly 12,000 households in the region were already paying an average of $125 a month for Internet and other telecommunication services – an amount that adds up to $18 million a year that people “are putting in an envelope and sending outside of your region.”

The most recent announcement relating to the project discusses how a recent federal broadband stimulus grant to the Massachusetts Broadband Institute will aid the Wired West network.

This will enable a robustmiddle-mile network to be built by the Massachusetts Broadband Institute (MBI) in Western and North-Central Massachusetts that will serve 123 communities. This wholesale network will bring MBI’s high-capacity fiber to the center of every town and connect Western Massachusetts community anchor institutions – town halls, fire stations and libraries – to the network. Even more importantly, it will provide the link to Wired West’s proposed last-mile network, enabling Wired West to extend fiber-optic connectivity to all of our homes, businesses and institutions in Western Massachusetts that desperately want service.

Warwick, Massachusetts Builds Community Wireless Network

While researching the Wired West Network in rural Massachusetts, I learned about another community broadband network. The little town of Warwick built a wireless network for itself; the story behind it gives a glimpse into the ways that the federal approach to broadband really fails small communities.

Miryam Ehrlick Williamson described their motivations and experiences. In 2008, after considering their options, they voted to borrow $40,000 in a town meeting (Warrick has 750 people) to build a simple wireless system that would be far superior to the existing options of dial-up and satellite (neither of which are a service that could properly be termed broadband). State and federal programs ostensibly meant to help towns in this position do little good:

We know about a USDA program meant to bring broadband to rural America. Our information is that most of the money has gone to suburban communities in Texas, and we don’t have a professional grant administrator to chase down any money that might be left.

We’re aware that the Massachusetts governor just signed a $40 million act establishing the Massachusetts Broadband Institute, to figure out how to bring broadband to unserved and underserved towns. We’re also aware that the money will go to vendors to develop regional systems and we don’t have the patience to wait the two or three years it will take for anyone to get around to thinking about maybe serving us.

Ultimately, the City was able to lend itself the money:

As it has turned out, we didn’t need to borrow — town financial officers found the funds without going to the bank for them. We got the necessary permits from the owners of two towers here, bought the equipment, got a couple of people trained to install the equipment, and turned on our first customers in March, 2009.

Between a local mountain and available cell tower, the topology apparently fits a fixed-wireless approach (at least for a significant part of the population). Nonetheless, they were well aware that the system would not have the reliability of robust wired networks - but occasional interference was vastly preferable to the status quo.

The plan expected to break even with as few as 15 households, but they have since achieved far more than that -- some 70 households as of February 2010. Aside from an upfront receiver cost of $400-$500 (which can be shared among close neighbors), the costs are $50/month. They are running backhaul on two T-1 lines, for which they pay $600/month -- a reminder of just how much people in rural areas have to overpay for basic connectivity.

They expect to break even in 2012. However, they may push that back depending on expansions decisions:

There are still families in town eager to subscribe, but we’re running out of places our wireless signal can reach. Expanding the system is possible, but there’s a lot to figure out.
If we spend subscriber fees to buy the needed equipment, that delays the day when we’ve paid off our debt to the town, and we’re aware that not all taxpayers benefit equally from having lent us the $40,000.

Not to harp on the whole failure of state and federal policy thing, but:

We may be able to obtain a state grant to buy what we need, but that means a ton of paperwork and all three members of the broadband committee (of which I’m one) are self-employed, and if we don’t work we don’t earn.

That leaves the proposal writing to the town’s part-time administrative coordinator, and he’s as busy as a one-armed paperhanger with the hives. We’ll figure it out, but there’s another consideration.

Too often, federal and state attempts to help just complicate the matter. The first thing a state should do to expand community broadband is to remove barriers to it, not set up complicated grants and such that are too complicated to help the smaller towns with even smaller staffs.

Finally, the blog post that alerted me to all this also updated me on the Wired West Initiative:

Three of the 49 towns decided they had sufficient broadband Internet coverage not to bother. So far, 39 of the remaining 46 towns have voted to join WiredWest, all but one by unanimous vote. Six towns will have their ATMs [Annual Town Meetings] during the rest of the month, and in one the select board will vote (almost certainly favorably.)

Photo of Warwick City Hall used under Creative Commons license, courtesy of John Phelan

Wired West Plans Muni Open Access Fiber in Western Massachusetts

A grassroots effort in the broadband desert of Western Massachusetts has been organizing local communities to build a publicly owned, open access FTTH network to everyone in the partner towns (universal access). This story notes that 33 Towns had joined the effort by early May, but the current map of supporting towns show 39 supporting towns now.

Some towns voted to join unanimously; very few have opted not to join the dialogue. Towns are asked to pass this proposed warrant article at their Town Meeting (a practice common in the New England area):

Article [X]:
To see if the Town will vote to enter into immediate discussions with other Western Massachusetts municipalities with the intent of entering an inter-municipal agreement, by and through the Select Board, pursuant to Chapter 40, Section 4A of the Massachusetts General Laws, for the purpose of establishing a universal, open access, financially self-sustaining communication system for the provision of broadband service, including high-speed Internet access, telephone and cable television to the residents, businesses and institutions of these municipalities; or act in relation thereto.

The preamble to the warrant article [pdf] offers the context:

WiredWest Communications, a community broadband network representing citizens in more than 30 towns in Berkshire, Franklin, Hampden and Hampshire counties, has studied how to make high-speed Internet access available to every household and business in our rural towns and has concluded that a universally-accessible, municipally-owned fiber-optic network, open to all providers, is the best solution. We believe that commercial Internet providers, such as Comcast and Verizon, will never expand significantly to reach unserved customers and will certainly never deliver universal coverage. Building it ourselves is our only alternative.

Participating towns will "be convened and pressing issues of governance and inter-municipal agreements will be addressed" in late June.

Though nothing is finalized (obviously), they explained one financing option in the Town Meeting handout [pdf from Google Docs]:

We expect to finance the construction primarily by low-interest loans (municipal bonds) plus additional loan guarantees or funding from state, federal, or private sources. Loan payments are paid by revenue from the use of the network – not by increased assessments to taxpayers. Overall capital required to construct the network is dependent on several variables that are currently unknown – foremost being the size of the network and the extent that the state and federal government will build some of the network – but we expect the cost to be between $50 and $150 million. The towns together will decide on the budgeting details, but towns are choosing to participate with the expectation that this will incur no additional debt burden, although start-up funds for administrative, technical, legal and marketing needs may be spread across all – probably 40 or more – member towns at a cost of about $1 to $2 per resident. With the passage of this article, our town joins with the other towns to ultimately set the budget and if we decide that participating in WiredWest is too burdensome for whatever reason, then we can quit.

The people organizing this effort admit they have a long way to go and recognize the difficulty, but they are taking it seriously and have done their homework.

We don’t have all the answers, a detailed business model hasn’t been determined, and this isn’t going to be easy, but we’ve thought long and hard about our broadband dilemma in western Mass and believe that a community-owned fiber optic network is the best way to achieve universal access and provide the best quality services in cooperation with existing telecommunication providers.

Once the warrant article is passed in participating towns and the towns come together to form a joint entity then all of the nitty-gritty details will be worked out. Together, democratically, in the best interests of the residents, the towns will determine the best course of action: we’ll nail down costs more precisely, perform market research to determine the number of residents who are likely to subscribe to various services (e.g. internet, phone or TV), figure out the best structure for governing, building and operating the network, settle on the technical details of the network “architecture”, work closely with public and private institutions to determine the best financing strategy, and we’ll “run the numbers” over and over to ensure that we can make this work.

On Opposite Coasts, People Organize for Broadband

I added these links to our link section in the right column, but wanted to note them explicitly. One of the goals of this site is to catalog what groups around the country are organizing for better networks that put the community first - if you know of groups, please let us know.

In California's El Dorado County, the Camino Fiber Network Cooperative is seeking ways to finance building broadband to people who currently have no options. Thanks to Eldo Telecom for tipping me off.

In Massachusetts, many communities in the western half of the state have no or poor broadband access, which is why Wired West is investigating options for a publicly owned, open access network.

Norton, Mass, Building Publicly Owned Institutional Network

Evidently, the Comcast-provided I-Net in Norton - a city of nearly 20,000 west of the Cape - suffers frequent outages, outraging those who depend on it. The City has decided to build their own network (after originally hoping Verizon would fund it) to connect town offices, public safety, and school sites with fiber-optic cables.

Norton predicts significant savings from the new network - just as do hundreds of other cities that are building their own I-Nets to cut costs and dramatically improve services and reliability.

The projected costs are $116,000, according to this article.

Town Manager James Purcell said the main infrastructure that will be installed will be the beginning, and likened the expenditure to paying for the installation of a major sewer line with stubs to various buildings.

Santa Monica and South Hadley Expand Networks

  • TMCNET interviews Jory Wolf - the CIO of Santa Monica's Information Systems Department - about their application for broadband stimulus funds. Santa Monica has long used its publicly owned network to expand broadband access in the community.

    Our Santa Monica City Net and City WiFi (News - Alert) project will provide the equipment and connections required to expand the City’s free WiFi service that delivers Internet access to the public at our libraries, open space areas, community centers, homeless shelter, senior centers and animal shelters. In addition, our project will provide a connection to over 200 ISPs to obtain affordable broadband options to local businesses and increase the competitiveness of our country’s preeminent post-production companies and intellectual exports located in Santa Monica, Calif.

  • South Hadley, a small town in Massachusetts, may expand its modest fiber network (currently connecting schools, police, and town hall to others in town. Its municipal power company is evaluating options.

  • Baltimore City Paper ran a column discussing the Monticello, MN, city-owned network and the attacks against it by TDS Telecom. This accounting of the history has some errant details, but I found it fascinating how far the Monticello story has spread.

Photo from public domain

Boston vs. Verizon

A recent editorial in the Boston Globe caught my attention - Fiber-optic nerve. It seems that Boston is tired of waiting for private companies to build modern broadband networks in the city.

The editorial suggests that as Verizon has started building its FTTH FiOS in New York City, D.C., and some of the Boston suburbs, it may be a withholding the network from Boston due to the Mayor's efforts to change a state law that has exempted telecom companies from paying a number of taxes. Verizon denies any connection. From the editorial:

Menino is right to insist that telecommunication companies pay their fair share of taxes. In Boston, the exemption shifts more than $5 million a year onto the property tax bills of homeowners, say city officials. But tensions between Verizon and the mayor can be costly in many ways. City cable providers Comcast and RCN, for example, don’t offer the speedier fiber-optic connections into customers’ homes available from Verizon in 98 Massachusetts cities and towns. The new and faster broadband speeds - both downstream and upstream - offered by Verizon to Internet customers therefore remain beyond the reach of Bostonians, as do FiOS-related incentives on products such as mini netbooks and camcorders. Cable and Internet competition is alive and well in the suburbs, but flat in Boston.

Verizon has previously threatened to withhold its investments in states that do not sufficiently deregulate -- after turning its back on the New England region by offloading its customers on the totally unprepared Fairpoint company, Verizon pushed franchise "reform" in Massachusetts. Franchise "reform" is when states agree to preempt local communities that selfishly want to regulate the quality of service offered by providers - things like requiring some local channels and thresholds for customer service. As Karl Bode noted in the link above:

While these bills are promoted as a magic elixir that will bring competition and lower TV prices to a region, when people go back to investigate whether these bills actually helped anybody (which is amusingly rare), data indicates that TV prices increased anyway and consumers got the short end of the stick. State lawmakers are usually no match for Verizon and AT&T lobbying muscle. Legislators frequently don't understand what the bills even do -- but are easily lured by promises of inexpensive TV service that never comes.

What I find most interesting is the apparent belief of Bostonians that Verizon is under some obligation to save their fair city from the under-investment of its existing providers. Verizon is under one obligation - to maximize returns for its shareholders. If they decide to invest in Boston, so be it. But their first priority is always shareholders, not what is best for a community.

As for Boston, it is up the City to make sure it is making the necessary investments to ensure they can thrive. Large cities have been loathe to invest in the fiber networks that smaller cities like Lafayette, LA and Chattanooga, TN have committed to. Time will tell if Boston's beggar-strategy will succeed.

Meanwhile, in another part of the state, OpenCape is moving ahead with middle mile plans to build the networks they need. OpenCape is a nonprofit:

OpenCape Corporation’s purpose is to fulfill the need for a regional communications network on Cape Cod and the Islands to enhance education, research, and economic development, AND provide for an emergency communications network in times of crisis.

Photo from http://www.flickr.com/photos/werkunz/ / CC BY-SA 2.0

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