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WindomNet Turns on Southwest Minnesota Broadband Services

Exciting times in rural southwest Minnesota, as Southwest Minnesota Broadband Services has turned on its first customer. SMBS is a broadband stimulus-enabled partnership with eight rural communities and WindomNet, the muni FTTH network in Windom.

The Rev. Andrew Schensted and his wife, Lisa, were the first to be connected. The fiber-to-home connection provides “obnoxiously fast Internet,” Andrew Schensted said in a SMBS press release.

The SMBS Internet is “at least 10 times faster” than what they had when living in the metropolitan area, Andrew Schensted added. The couple has been able to streaming video in full HD from TV streaming websites.

So it begins... the Metro around Minneapolis and St Paul have to rely mostly on Comcast for connections to the Internet. CenturyLink's DSL is generally slower and in many places, utterly unreliable. Monticello has had a blazing fast connection (faster than we can get in the metro) at lower prices for more than a year. Communities served by HBC also have faster connections in SE Minnesota. In the coming year, the stimulus-funded networks on the North Shore will also have better connections than we can get. It will be curious to see how development patterns adjust in the coming years.

“The demand for higher-speed Internet in our rural area is daunting,” Olsen said. “People not only want faster speeds, they need it for their business operations. If the wireless trial is successful, it could provide a better option to those not on the fiber system. “

Southwest Minnesota Broadband Services (SMBS) is a consortium of eight communities including Bingham Lake, Brewster, Heron Lake, Jackson, Lakefield, Okabena, Round Lake and Wilder. The 125-mile, $12.8 million dollar fiber ring is expected to be completed in September 2012.

The fiber-optic communication network has the capacity to bring fast, competitively priced services for internet, phone and cable TV to residential subscribers as well as businesses and other community institutions. The government grant-supported project is intended to provide southwest Minnesota with the telecommunications connectivity required to remain competitive in the global marketplace.

The new network has bucked a strong trend among community fiber networks of offering symmetric connections to the Internet. Packages and pricing are available here. If I had to guess, the most commonly subscribed-to package will be the 10/2, which is pretty limiting in the upstream (though a tremendous improvement over the status quo).

Update: I have just verified that Windom is limited in what they can offer in the upstream presently due to the limited options they have for connecting to the Internet from rural Minnesota. Over time, we hope they will have more options that will lower those costs for them.

At a certain point, true symmetry becomes an academic point. I don' think many would quibble with a connection that is 21/19 or 33/35. The question is ultimately whether one is limited by the network. Nonetheless, we are strong proponents of networks upstream capacity that is closer to downstream capacity because being on the Internet is about participating, not consuming.

PUC Gives Lake Communications Authority to Offer Broadband on Minnesota North Shore

When last we looked in on the Lake County FTTH project connecting rural areas north of Lake Superior, the County had just ditched its original management team and Mediacom started trying to derail the project.

The County went on to hire "Lake Communications," a two man firm created for this project, while Mediacom presumably returned to quietly scheming against the introduction of any competition on their turf. Lake Communications has received authority by the Minnesota Public Utilities Commission to provide broadband in their target territory.

Kevin O’Grady, a staffer for the Public Utilities Commission, called Thursday’s 5-0 vote “uneventful.” He said that aside from a protest from the Minnesota Cable Communications Association that was withdrawn just before the vote, the application was “nothing out of the ordinary.”

The cable association, which faces competition from the fiber project, had complained that the county, without a public vote, couldn’t be the legal authority to provide telecommunications services under Minnesota law. The commission, responding to the complaint, said the authority would be granted to Lake Communications, which it deemed had a proper relationship with the county in providing the service.

The county plans to build the network and lease the lines to Lake Communications for revenue. In its original response to the cable association’s complaint, the state commission said Lake Communications’ application “complies with the requirements typically applied by the commission to applications” across the state. It also stated that Lake Communications’ financial statements were “sufficient and consistent with the financial information filed by other applicants for authority.”

Remember that Minnesota law requires a supermajority vote of 65% before cities and counties provide telephone service. In this case, Lake Communications will be offering the services on infrastructure owned by the County. If there is any sliver of a doubt about the legality of this arrangement, we can expect Mediacom or the Minnesota Cable Communications Association to file suit.

But now is probably not a good time for them to sue. Most of the time, the point of lawsuits against community networks is not about winning the suit, but rather delaying and disrupting the project. So one would expect a lawsuit to occur much closer to the ground-breaking. Why risk suing now, when the lawsuit could be resolved over the winter, when little work is being done? Better to wait and hope the suit takes much of the construction season away from the potential competitors.

We hope this is too cynical a reaction, but watching some of these lawsuits play out leads one to such suspicions.

This is yet another reason the Minnesota Legislature should make it very clear that local governments have full authority to bond for, finance, build, operate, and own these networks -- preferably with no more barriers than are common for other significant public expenditures.

Without this project, much of Lake County and the nearby areas also served by this project will simply not have fast, affordable, or reliable access to the Internet. Let's hope the anti-competitive desires of a few companies in portions of the county do not derail it for everyone.

Minnesota's Most Rural Counties Get FTTH Following Stimulus Awards

I just spoke with Danna MacKenzie of Cook County and Gary Fields of National Public Broadband (working with Lake County) to find out just how excited they are about yesterday's announcement of broadband stimulus awards. Both Lake and County (separate projects) have been funded to build fiber-to-the-home networks to everyone on the power grid in the region.

They are pretty excited.

In a few years, these North Shore Communities will likely have better broadband options than the metro region of Minneapolis and Saint Paul -- a far cry from the beginning of this year when a single fiber cut stranded the whole north shore.

Bob Kelleher at Minnesota Public Radio covered the awards:

Combined, they will connect 37,000 residents, 1,000 businesses and 98 institutions such as hospitals and schools.

Cook County actually has a double whammy - they already stood to benefit from the North East Service Cooperative, which is building high capacity fiber-optic lines through the North Shore to offer middle-mile backhaul and connect local government facilities and schools.

As of yesterday, they will also get a fiber-to-the-home network from the Arrowhead Electric Cooperative. Cook, currently served in part by Qwest, has little access to true broadband -- some 37% have access to anemic DSL connections and the rest are stuck with dial-up.

Details of the award from Kelleher at MPR:

Joe Buttweiler, who directs membership services with the Lutsen-based Arrowhead Electric Cooperative, said 70 percent of the federal award is a grant and the remainder a loan. He said the cooperative will add another $600,000 for capital.

Back in April, Blandin's Broadband blog published the short summary of the Arrowhead project:

Arrowhead Electric Cooperative proposes to build and operate a fiber optic network to the residential and commercial members of the cooperative as well to underserved safety and anchor agencies in our service area. This project is designed as an open network allowing multiple qualified vendors to offer services on the system.

I will be fascinated to see how the open network fares -- who will choose to provide services on it, and how will the network fare? This open access arrangement is our single best hope as a nation to escape from the extremely limited broadband competition we see presently.

Lake County Map

Over in Lake County, the new network will reach into parts of St Louis County, including the communities of Ely, Babbit, Hoyt Lakes and Fairbanks. Some of the these folks have been working for many years to build a community fiber network, which undoubtedly facilitated their joining the Lake County project. See project map [pdf].

From the RUS Press Release for Lake County [pdf]:

This approximately $66.3 million award, matched by $3.5 million in private contribution, will allow Lake County to offer FTTP advanced voice, video and data services to every home and business in Lake and eastern Saint Louis Counties. Approximately 37,000 people stand to benefit, as do roughly 1,000 businesses and 98 community institutions. In addition to the 510 jobs Lake County estimates this project will create upfront, it will provide a foundation for economic growth and job creation for decades to come.

A press release from the project notes [pdf]:

Construction of the network is expected to begin in Spring, 2011. The first customers are expected to be connected within one year. The entire network will be completed within 3 years. Lake County Commissioner Paul Bergman stated, “This network will be designed with redundant connectivity, so that service interruptions that we have experienced this last year won’t be possible.

A story from the Duluth News Tribune offers more background about the project:

The $66.3 million award from the Department of Agriculture comes through its Broadband Initiatives Program. After other matching funds, the total will be about $70 million, Bergman said. The award breaks down as a $56.4 million loan and a $10 million grant. There will be about $3.5 million on municipal bonds issued, which would be paid back with operational revenues.

When we at ILSR learned of the broadband stimulus program last year, these are the exact sorts of programs we hoped would be funded. So as we hit the end of the broadband stimulus grants, it is nice to go out on a high note.

Update: Beyond the stimulus, Duluth must be considering what it will do -- it will soon have a wealth of middle-mile but it has been left out of last-mile investment whereas neighbor Two Harbors will get FTTH.

Update 2: It seems that some who are not on the grid want to connect to the Net. Fascinating!

Qwest Isolates Entire Minnesota Counties with Fiber Cuts

For some 12 hours last week, entire communities found themselves without access to telecommunications due to a fiber cut to a Qwest cable that services the entire region. This is not the first time such a cut has marooned everything from Homeland Security to long distance phone calls to businesses that can no longer accept credit card transactions -- but Qwest has refused to invest in a redundant cable, showing their disregard for those communities.

I wonder how many businesses were hurt by their sudden and unplanned isolation from clients, partners, and others. How many missed contracts or deadlines?

It shows the insanity of putting barriers before communities that are trying to build the very networks companies like Qwest promise but never deliver (barriers like the 65% referendum to offer telephone services for publicly owned networks). Both Lake and Cook Counties are waiting to hear the status of their applications for federal broadband stimulus funds, with which they will build broadband networks. Companies like Qwest and Mediacom have opposed new networks in an effort to protect their turf, even while refusing to invest in those areas because they do not generate sufficient profits.

These County initiatives have not been denied stimulus funding but have also not moved into the "due diligence" phase, placing them in limbo and forcing them to prepare additional applications for the second round of funding before they even know why their application was denied (if it is denied) in the first round. Somewhere, Joseph Heller is smiling.*

MPR provided good coverage of this fiber cut even though they did not air an explanation as to why Qwest finds it reasonable to keep these communities connected with a single cable.

Bank ATM's failed. No one could use their credit cards. But as bad as that was for business, the 12-hour-long outage knocked out what the federal government calls a "vital part of our nation's emergency response system."

The outage killed 911 emergency service in Cook County, Chief Deputy Leif Lunde said.

...

With no 911 service, county officials turned to volunteer firefighters to field emergency calls from normally un-staffed fire halls. Fire truck radios relayed the information back to Grand Marais. Ham radio operators provided a backup way for the Grand Marais hospital to consult with Duluth medical facilities.

U.S. Customs and Border Protection officers received help from their counterparts in Canada, according to Public Affairs Liaison Chris Misson.

Read, or listen to, the entire story - it is well worth it and a good reminder that these networks are essential infrastructure.

Update: Resident Jim Boyd has a great piece as well, describing the impact of this Internet dislocation:

County and state police officers lost the ability to check driver's licenses and vehicle plate numbers and to make warrant checks on people pulled over or behaving suspiciously.

...

Banks lost access to all of their online records and their ability to connect with other financial institutions. Business ground almost to a halt, save for the few simple transactions that required only a temporary paper record, such as cashing small checks or accepting deposits.

I won't quote more because you should read his entire analysis. The conclusion is impossible to dismiss: these networks are essential infrastructure and communities must have the option of building their own network to avoid these problems.

Many communities around the country have built their own networks to ensure redundancy to first responders and other vital entities. In New York and DC, the local government runs its own network because their public safety departments cannot be just another customer to the phone company. In North Carolina, the non-profit Mountain Area Information Network provided broadband access to ham radio operators to recover in the event of a natural disaster - the incumbent (a national company) is far less responsive to local needs.

Disruptive cuts to these networks are not infrequent around the country -- but they don't always make the news, unfortunately. 2 months ago, I got an email from an exasperated person in Nebraska who noted thousands had lost Internet for 12 hours at that point and they didn't know when it would end. Once again, it was caused by a cut to Qwest fiber. Googling it, I cannot find news of it anywhere except for some social media sites. Nebraska is one of the worst states when it comes to preempting communities from building their own networks -- they need to reconsider that decision to bring some competition to town.

*Author of Catch-22 for you non-literary types.

Photo by Jackanapes, used under creative commons license.

Results of Tuesday's Elections

A few local elections on Tuesday had questions relating to publicly owned broadband networks. In Seattle, candidate McGinn strongly supported a publicly owned fiber optic network for the city and he may yet get his way as the race is a dead heat and ballots are still being counted. We previously discussed Seattle's broadband deliberations.

In Longmont, Colorado, voters voted against giving the municipality authority to expand the city owned fiber-assets into a network offering retail services. As usual, the proponents of the public network were significantly outspent by incumbents seeking to prevent competition.

A group called No Blank Check Longmont, backed with $150,000 from the Colorado Cable Telecommunications Association, spent more than $143,000 in cash and benefited from more than $46,000 in in-kind contributions in its campaign to defeat 2C.

Up on top of Minnesota's North Shore, the Cook County Broadband project got a mixed reception. Though they received the authority to raise a 1% sales tax that would have helped pay for the project, they failed to achieve the necessary 65% super majority required under ancient Minnesota law (1915) to operate a telephone service. A majority supported the idea - 56% - but without the ability to offer a triple-play, the county will have to reconsider its approach.

Though such results are disappointing, every community with a locally owned community network has had to deal with such setbacks. The question is how organizers can respond to challengers and how badly the community wants fast and affordable broadband networks.

In the near term, I hope that both the Minnesota Broadband Task Force Report (due Friday) and the FCC National Broadband Plan recommend abolishing such barriers to public ownership as a 65% referendum.