Chicopee, Massachusetts, is on its way to better connectivity through a publicly owned network after all. Chicopee Electric Light (CEL) has announced that the municipal utility plans to develop a pilot program yet this year to experiment with business connectivity. If all goes well, they have a long-term vision to also serve residents.

Remember That Resolution You Introduced?

Last week, we reported that at a recent meeting, City Councilor Joel McAuliffe had presented a resolution seeking support for a municipal network. Rather than pass it, however, the council referred the resolution on to the Utilities Committee for further review. McAuliffe created an online petition to show his colleagues on the council that their constituents supported a publicly owned network.

According to local outlet The Reminder, as the issue of municipal connectivity became a hot topic, CEL decided it was time to release news of their plan to launch a pilot project.

CEL General Manager Jeff Cady said, “We’re a municipal utility and operate in the best interest of our stakeholders, the rate payers. We’re going to operate our Internet service in the same way. We’re going to start slowly, providing service to a handful of businesses to iron out any issues.”

Cady went on to tell The Reminder that, even though the feasibility study was a few years old, the data was still valid and CEL are close to finalizing their plans.

CEL has already decided on a name for the service: Crossroads Fiber. The network will be deployed in phases, with businesses closest to existing fiber assets scheduled to be the first for connection. Approximately 70 percent of businesses in Chicopee are already near the community’s existing fiber and some are already receiving service through an agreement between CEL and Holyoke Gas & Electric. Once the initial pilot project is completed and CEL has had a chance to discover and resolve any issues, they anticipate expanding the pilot area in 2019.

Residents Won't Have to Wait Too Long

What started as a pilot project back in 2014 has consistently expanded to more addresses. Now the “Little Gig City” has put a date on when they expect to complete the final phase of their community-wide fiber network — early 2020. “Right now we feel like we’re kind of in the home stretch,” says Erwin Utilities fiber optic engineer John Williams. 

When The Time Was Right

The small town of Erwin, Tennessee first explored the possibility of bringing Fiber-to-the-Home (FTTH) to its residents in 1999. At the time, however, the community chose not to pursue a publicly owned network because only 20 percent of homes in the area had a computer and the initial estimated cost of over $20 million was too high for local palates. The market changed over the next few years and in 2012, the town finally felt it was time to invest. They constructed a fiber backbone that connected 45 SCADA locations and six county schools. By 2014, the city announced plans to develop a pilot project for business and residential connectivity in the downtown area.

The pilot project reached approximately 1,000 premises; the utility’s goal was to achieve a 25 percent take rate to ensure the service would be self-sustaining. According to Williams, the utility swiftly surpassed their goal and are now at 36 percent subscribership in the original deployment area. Erwin Utilities has expanded, passing a total of approximately 5,000 premises out of 9,000 total potential premises, which are also electric service customers.

Because Tennessee municipal utilities are subject to state law that limits their Internet service area to their electric service footprint, Erwin can only provide connectivity to a limited number of premises. The law creates a situation that protects incumbent monopolies, but forces rural folks who obtain electric service from a different provider to rely on ISPs that generally offer poor Internet access options via DSL or expensive satellite service.

The Ultimate in Self-Reliance

Rural electric cooperatives in Arkansas are stepping up and making the investments to bring broadband connectivity to their members. We recently described plans taking shape from North Arkansas Electric Cooperative. This month, construction began in the northeast region on infrastructure that will provide both broadband access and improved smart grid technology in the eight counties of Craigshead Electric Cooperative Corporation (CECC).

A Multi-Year Investment

The cooperative will deploy approximately 5,000 miles of fiber on utility poles and underground over the next five to seven years. Empower, a subsidiary of CECC, will offer Internet access to more than 30,000 members and non-members in its service area northwest of Memphis by the time construction is finished. FCC data has determined that about 44 percent of CECC’s members aren’t able to subscribe to broadband at the 25 Megabits per second (Mbps) download and 3 Mbps upload minimum threshold because there is no option in their territory.

CECC wants to make use of smart grid technology in order to improve delivery of electric services. Since fiber optic Internet infrastructure and smart grid can exist hand-in-hand, and the region is in desperate need for better connectivity, CECC and Empower will offer high-speed Internet access where incumbents won’t.

The cooperative will spend approximately $100 - $110 million to complete the project; construction on the first phase began in July and should be finished by the end of 2018. In addition to the economic development benefits that will come to the region as the infrastructure attracts new business, 30 new permanent positions which will be created to manage and operate the network.

Ocala, Florida, is one of those communities that doesn’t think twice about offering high-quality Internet access to businesses and residents. They’ve been doing it for decades and, when media coverage around gigabit connectivity began to expand, they were a little surprised because they had been offering similar services since the early 2000s. The benefits were nothing new to Ocala.

A Familiar Story Taken to Its Logical Conclusion

We touched based with Arnie Hersch, Senior Broadband Engineer for the City of Ocala, who shared the story of the network. Arnie has spent more time working on the network than anyone else in Ocala.

As in many other communities, Ocala started deploying fiber between its municipal utility facilities, including electric substations and water and wastewater locations, to improve inter-facility communications. In 1995, copper connected the city’s substations for SCADA operations. The copper was aged and had been struck by lightning, which negatively impacted its ability to perform; decision makers at the utility decided to replace the copper with fiber optic lines. As they finished deploying that year, Arnie joined the city's telecommunications utility; one of his primary objective was making the most out of the new fiber network.

First, Ocala connected all of its 52 municipal facilities in order to improve connectivity and cut costs. At the time, city offices still used dial-up connections for Internet access. Within two years, Arnie had switched the city to an Asynchronous Transfer Mode (ATM), which allowed them to use the new infrastructure for computing and voice applications. The change opened new doors for the city.

In May of 2017 we congratulated Chattanooga’s EPB Fiber for exceeding 90,000 subscribers and contributing to lower power rates for all (Electric Power Board) EPB customers. Now less than a year later, there is more to celebrate as EPB expects to reach 100,000 subscribers by Fall 2018 and is still lowering electricity costs for all customers. 

The city-owned electric utility launched its citywide fiber optic network in 2009 and never looked back. The original plan issued nearly a quarter of a billion dollars in debt for the utility and had an estimated forecast for only 35,000 subscribers. The city is now reaping the rewards from its investment; the utility paid off the last of its debt earlier this year, and now projected revenues for the fiscal year 2018-2019 from the telecom division sit at $169.1 million.

For a detailed, interesting history on EPB Fiber Optics, take some time to listen to Harold DePriest talk with Christopher in episode 230 of the Community Broadband Bits podcast. Before retiring, Harold was the tip of the spear in bringing the network to Chattanooga.

Major Savings

While EPB has long been recognized for its lightning fast Internet speeds and has repeatedly been ranked among the fastest in the U.S. (including this year’s fourth fastest ISP in the United States), the utility’s fiber optic lines also help lower power rates for all customers by eight percent. Whether Chattanoogans subscribe to EPB Fiber for Internet access or not, they still benefit from the infrastructure.

There are often common characteristics among communities that have invested in fiber optic infrastructure. While many of them can't get the connectivity they need from the incumbents or lack reliable Internet access, many begin their ventures into better broadband by connecting utility facilities. A new nonprofit, the Post Road Foundation, sees a valuable link between intelligent infrastructure, high-quality connectivity, and sustainability. By bringing together members of the public and private sectors, the Post Road Foundation is implementing an innovative approach to funding. With support from the Rockefeller Foundation, they've selected five partners to begin implementing their new approach to funding, connectivity, and sustainability.

Bringing It All Together

Co-founders of the Post Road Foundation, Waide Warner and Seth Hoedl, have decades of experience between them in law, policy, and leadership. Their areas of expertise span cyberlaw, government and finance, environmental law and policy, electricity, telecommunications and energy law and policy, nuclear physics, and the list goes on. Through their years of research and in consulting with both public and private entities, Warner and Hoedl both saw that many rural communities needed better connectivity for economic development, better quality of life, and to keep populations strong. They've also found that if local communities or cooperatives are able to use fiber optics to synergize multiple utilities, the community is resilient and more self-reliant.

This is episode 279 of the Community Broadband Bits Podcast. Russ Brethrower, a project specialist at Grant County Public Utility District, discusses how Grant County, Washington, pioneered open access infrastructure in the United States. Listen to this episode here.

Russ Brethrower: Our commission, management, everybody's made it really clear. Our capital is an investment in the future of the county up and down the food chain. It's -- it's a given that it's an investment and the capital is not expected to be returned.

Lisa Gonzalez: You're listening to episode 279 of the Community Broadband Bits podcast from the Institute for local self-reliance. I'm Lisa Gonzalez. Christopher recently attended the broadband community's economic development conference. He attends every fall and if he's lucky he's able to record interviews with people from some of the communities we're curious about. He also makes the trip to each Broadband Community Summit the spring time event. While he was at the November event in Atlanta, he connected with several people including this week's guest Russ Brethrower from the Grant County Public Utility District in Washington Grant County PUD has one of the most established and geographically largest open access community networks in the US. The rural communities population is sparse and widely distributed but community leaders had an eye toward the future when they decided to invest in fiber infrastructure. In this interview, Russ shares the story of their network and describe some of their challenges. Here's Christopher with Russ Brethrower from the Grant County Public Utility District in Washington.

This is the transcript for Episode 277 of the Community Broadband Bits podcast. Luis Reyes from Kit Carson Electric Cooperative joins the show to explain how electric cooperatives are solving the digital divide in rural America. Listen to this episode here.

Luis Reyes: People trust co-ops. They trust Electric co-ops. They've been - been around since the mid 30s. I think there was a lot of faith that we could pull this off and make it as reliable as we made the electric system.

Lisa Gonzalez: You're listening to episode 277 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. Rural New Mexico has some of the most scenic landscape in the U.S. It also presents some of the most difficult challenges in getting its widely dispersed population connected with high quality connectivity. The Kit Carson Electric Cooperative it's changing the situation in the north central area of the state. For several years now they've been connecting people in the region with fiber to the home improving connectivity for residents, businesses, and local entities. This week we hear more about the project from Luis Reyes CEO of Kit Carson who gives us a history of the project and how high quality Internet access is benefiting the region. Now, here's Christopher and Luis.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell from the Institute for Local Self-Reliance up in Minneapolis, Minnesota. Today I'm speaking with Luis Reyes the CEO of Kit Carson Electric Cooperative. Welcome to the show, Luis.

Luis Reyes: Thanks Chris. I'm happy to talk to you.

Christopher Mitchell: Well I'm excited to talk to you as well. We've we've been covering a lot of the electric cooperatives getting into fiber networks. You've been doing this longer than many. We've interviewed a few others but I think this is incredibly important for rural America. Maybe start by telling us a little bit about Kit Carson. Where are you located and what's the geography around your area?