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Highland Illinois Networks Takes Another Step Forward

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By christopher on January 27, 2010

This community of almost 10,000 near St. Louis has taken another step toward creating competition in broadband by investing in a publicly owned fiber network. In April of 2009, the community voted overwhelmingly (75%) yes to a question authorizing the network with revenue bonds that would be backed by electrical revenues from the city's public power company.

They have started the first phase (focusing mainly on businesses though some residences will be passed) by awarding bids for construction (the bids were below expectations - a slow economy is a good time for infrastructure investments due to the low prices). Though the project has spurred some debate, the majority remain in strong support, as demonstrated in a recent article about the project.

Guillot presented the council with more than 100 email replies from Highland Chamber of Commerce members who are in favor of the fiber project, including banks, schools, manufacturers, realtors and other businesses.

“There are currently other companies providing like services in Highland. This project will not end their relationships with the city, rather it will give consumers a choice and force competitors to provide a better product or better service to remain competitive,” Guillot said. “This will also keep more revenue in Highland.”

Highland resident Brad Korte agreed.

“The fiber-to-the-home parallels paving the streets in the 20s, starting the city’s electric system and water department. I would rather spend my money, and take a chance with my money on Highland,” he said. “If we don’t take a chance on this, I think we would regret it in a couple of years.”

The project will proceed more quickly if they are successful in an application for stimulus funds under the broadband programs. Regardless, the first phase will be completed in a year and needs a 23% take rate to break even financially (ignoring the many indirect benefits of such a network).

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Previous Coverage of Highland

Highland Illinois - Deliberating a Network

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By christopher on December 17, 2009

Highland, Illinois, having overwhelmingly approved a referendum in April, 2009 to own and operate a fiber-to-the-premises system, has continued to examine the potential for a publicly owned fiber-to-the-home network. Most of the local government is supportive but one councilmember is vehemently opposed, leading to a ""boom or bust?" article in the local paper.

Interestingly, the city had a significant outage in 2008 due to a fiber cut outside of town.

The new redundancy brought by fiber that would mean a decrease in the chances for a repeat of the winter 2008 when a third-party contractor working to put up a communications tower for AmerenIP cut a fiber optic cable near Maryville, knocking out phone service, most cellular services and Internet service in Highland for nearly seven hours, Latham [city manager] said.

Worried about the future, Latham then spoke with the incumbent provider:

“There was another one for a short span six weeks after that and I spoke with a Verizon official if there were any plans to come in a build a tieback to create redundancy and they said no. The city is fighting for the best interests of this community.”

Whether Highland can get broadband stimulus funding in round 2 or not, they are on the right path for ensuring their community is ready for the future.

Rochelle, Illinois - Smart Municipal Investors

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By christopher on December 14, 2009

I stumbled across an interesting article about a small community in Illinois - Rochelle - that has used smart public investments to ensure a healthy future. Their utility has long offered broadband, both fast connections to businesses and Wi-Fi to ensure everyone had some method of access.

Just as they now have a city-owned utility offering broadband, they also have a public power company... and a city-owned railroad track connecting to other lines... and a publicly owned airport. All of this public ownership doesn't seem to have the town in an uproar over some "public v. private" ideological dispute -- because it has generated so many jobs and community benefits.

This is another example of how the "public v. private" distinction in telecommunications is mislabeled. It should be called "AT&T, Verizon, Comcast, and a few others v. everyone else." The entire private sector benefits from smart public investments in infrastructure, minus a few monopolistic telcos who could very well also benefit if they would work with us.

Illinois Governor Recommends Publicly Owned Fiber Network for Broadband Stimulus

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By christopher on November 13, 2009

Highland, a city in Illinois, has been recommended by the governor to receive a grant from the broadband stimulus program. Highland plans to build a full fiber-to-the-home network after first connecting the schools and public buildings (a phased approach that has worked well elsewhere). Stimulus funds would expedite the buildout that has already demonstrated strong community support.

Highland city voters passed — with 75 percent voting in favor — three referendums April 7 concerning the idea to bring fiber-optic cable connections to every home and business within the city. It will offer high-speed Internet service, telephone and cable TV.

Shortly after, the council had authorized construction and operation of a telecommunications and cable television system, while emphasizing the need for careful planning. The council also voted to set up a three-member Telecommunications Advisory Board to oversee the process.

Stimulus Updates

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By christopher on August 7, 2009
  • NTIA head Larry Strickling has suggested that if an incumbent wants to veto a stimulus grant in its territory, the data it uses to show the area is served will be on the public record. As this is a step in the direction of making such information public, it is good. However, there is still no clear method of appealing such a veto.
  • Craig Settles has called for letters to the NTIA asking for a deadline extension for the first round of grant applications. Muniwireless.com published a commentary explaining why a delay is a good idea.
  • West Virginia, one of the most-underserved states by broadband providers, is starting to worry much of the state may not qualify for broadband funds according to the Charleston Daily Mail. Unfortunately, they are relying on data from the industry-backed Connected Nation operation, so who knows? Being so heavily influenced by incumbents, Connected Nation significantly overstates existing coverage.

    However, the story is interesting in pointing out that the approach taken by NTIA will not result in sustainable network. Because network deployers must stick to the areas of least density, they have no revenue base with which to cover operating costs. Once the stimulus money goes away, one wonders how many of these networks will fold -- though NTIA has claimed that networks must demonstrate fiscal viability after the grants run out.

  • Champaign-Urbana is planning a fiber network contingent on stimulus funds. They have had to scale back plans for the network due to the stringent definition for "underserved." Illinois has set aside $50 million to help Illinois applicants as each applicant must provide 20% of the project cost to qualify under stimulus rules. The project will fund connections to the home in 11 census blocks that are currently underserved, create 35-40 computer labs for public use, and create a more advanced lab to assist the public computer labs. It will also build fiber rings to connect over 100 anchor institutions (hospitals, schools, government buildings) that may later be useful to expand access to the network.
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