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Another Gig in Tennessee: Jackson Energy Authority Announces Network Upgrade

One of the earliest and largest community fiber-to-the-home networks in the nation is about to get an upgrade. Jackson Energy Authority (JEA), a public utility in Western Tennessee, has announced that all 18,000 of its subscribers will be able to receive symmetrical gigabit services within three years, with the first upgraded connections expected to come online in early 2015. The pricing for a gigabit connection is not yet finalized, but will be under $100 per month according to Senior VP of Telecommunications Ben Lovin. 

JEA built out its FTTH network way back in 2003, when DSL was still considered fast and iPods and cellphones were just beginning to find their way into most people’s pockets. At a cost of $54 million, the network was funded mostly through revenue bonds. It has offered triple play services (voice, internet, and television) for ten years, achieving take rates of up to 70%

Because of the age of its equipment, to enable the gigabit upgrade JEA will have to replace the optical network terminal (ONT) at each premises - the point where the network fiber connects to the actual house or building. JEA will also have to replace some of the network equipment in its central offices. The total cost is expected to fall between $8-10 million. Unlike the original network build out in 2003, however, the upgrade will be funded through regular cash flow and will not require borrowing. 

JEA provides all utility services under one umbrella in the city of Jackson: water, heat, electricity, and telecommunications. Its investment in ubiquitous fiber has allowed it to implement smart grid technology, managing outages and power flows more securely and efficiently. 

Jackson, Tennessee is also a member of Next Century Cities, the collaborative effort between communities and elected leaders across the country to share informational resources and promote fast, affordable, and reliable Internet access.

"Envisioning a Gigabit Future" Reminder and Livestream Info

Chattanooga is a destination of choice for gigabit seekers and advocates for local choice, especially on Tuesday, November 18th. Next Century Cities and the Southeast Tennessee Development District will convene a field hearing titled "Envisioning the Gigabit Future." If you are not able to attend, the event will be live streamed.

Register to stream the event at http://conta.cc/1yRvAjG.

As a reminder, the event will be at The Church on Main in downtown Chattanooga from 9 a.m. - 12:30 p.m. EST.

Speakers will include Mayors, elected officials, and a long list of other local leaders with firsthand experience in bringing high speed access to their communities. 

There is still time to register online to attend.

Local Entities Coordinate to Deploy Fiber in Illinois

Several entities in northeast Illinois are hoping to improve connectivity, reduce costs, and spur economic development with a publicly owned $2.11 million fiber optic investment. 

McHenry County, the City of Woodstock, McHenry Community College (MCC), and Woodstock Community Unit School District 200 are working together to develop the McHenry County Broadband Fiber Network Consortium. The county's Emergency Telephone System Board will also will belong to the consortium. The purpose of the group will be to oversee and manage the network, reports an October 26th Northwest Herald Article.

The Woodstock City Council recently unanimously approved participation in the project and the proposed intergovernmental agreement. District 200 soon followed with unanimous approval on October 28th, and on November 6th the McHenry County Board also agreed unanimously to participate in the project. The agreement and details about the project are available in the Agenda Packet [PDF] from the November 6th County Board meeting.

Each entity expects to see significant savings as they eliminate leased lines. Woodstock's annual projected operational costs will be $33,784, reducing municipal connectivity costs by about $13,448 per year by eliminating leased lines. Woodstock will also enjoy the ability to budget from year to year without the threat of unpredictable rate increases from current provider Comcast. City Manager Roscoe Stelford told the Northwest Herald:

The potential economic development opportunities, allowing area businesses to buy and use the new network, alone makes the project significant, he said.

“Having that high-tech infrastructure in the City of Woodstock is going to be another feather in our cap for us to secure economic development opportunities,” Stelford said.

The network will bring a 10 gigabit fiber back bone from the MCC campus through downtown to the County Government Center. Laterals will branch out to municipal and school facilities. The current plan includes gigabit connections to 24 municipal buildings, public safety sites, schools, recreation centers, a library, a work force center, and an opera house.

Comcast now charges District 200 approximately $109,000 per year for connectivity. When leased lines are eliminated, the District will spend approximately $48,500 as their share for operational and management costs. In addition to saving over $60,000 per year, District 200 will be able to offer students future-proof infrastructure. From the Woodstock Independent:

“It’s an exciting position to be in, and there are other things we’ll see savings on,” said [school] board member William Nattress. “Technical refreshment, new applications will be easier and less expensive now that we have this backbone.”

District 200's share is the largest because it requires more connections. Budgetary uncertainties at the state level have created concern for District 200 so Woodstock and McHenry County will cover District 200's $806,526 share with an interest-free, four-year loan.

For the total project, McHenry County will be responsible for $760,526; Woodstock will contribute $386,624; MCC will provide $54,423; and the Emergency Telephone System Board will contribute $105,800.

The Northern Illinois University's Broadband Development Group will coordinate the project; the network may be up and running as early as summer 2015.

"Envisioning a Gigabit Future" on November 18th in Chattanooga

Next Century Cities and the Southeast Tennessee Development District will host an event on November 18th in Chattanooga entitled "Envisioning a Gigabit Future" at The Church on Main.

The field hearing runs from 9 a.m. to 1 p.m. EST. Participants will hear from panelists who will discuss how and why gigabit infrastructure is quickly becoming a critical component to local community vitality.

From the invitation:

Chattanooga is one of America's first - and leading - truly "gigabit" communities. Although the city's investment and commitment has yielded dividends for the city itself, this is not just an issue of local or parochial concern. The potential for gigabit and next-generation broadband to improve America's communities is a national question, with national implications. 

For example, Tennessee is one of about twenty states that restrict community broadband choice, prompting Chattanooga and Wilson, North Carolina (another such state), to petition the Federal Communications Commission to remove these restrictions so that Chattanooga and Wilson can expand their highly successful networks.

Speakers and panelists will include:

  • Mayor Andy Berke, Chattanooga, TN
  • Senator Janice Bowling, Tennessee State Senate (16th District)
  • Mayor Gary Davis, Bradley County, TN
  • Harold DePriest, President and CEO, EPB
  • Jonathan Taplin, Director, Annenberg Innovation Lab, University of Southern California
  • Tony Perez, Director of the Seattle Office of Cable Communications and President of the National Association of Telecommunications Officers and Advisors
  • Aldona Valicenti, Chief Information Officer, Lexington, KY
  • Rick Usher, Assistant City Manager, Kansas City, MO
  • Beth Jones, Executive Director, Southeast Tennessee Development District

You can register online for the free event.

Chanute City Leaders Approve Financing Strategy for FTTH in Rural Kansas

Chanute's City Commission passed a motion this month to fund its planned FTTH project with revenue bonds, bringing the entire community closer to fast, affordable, reliable connectivity, reports the Chanute Tribune

In addition to authorizing a plan to secure $18.9 million in revenue bonds, the motion also included funds for a pre-deployment baseline analysis focused on economic development and funds to hire an attorney. The bonds include debt service reserve funds and additional funding to make early interest payments. The plan determines the city will pay off the investment in a little over 14 years, based on a 45 percent take rate.

The Kansas Corporation Commission (KCC) must approve the plan. The KCC is a state regulatory body with a variety of responsibilities, including regulating telecommunications utility rates. The KCC also handles rates for electricity, natural gas, and liquid pipeline services. They handle safety issues, licensing, energy conservation, etc. If the KCC does approve the plan, the bonds can be secured without a public vote unless the city receives any petitions. Chanute still plans on providing residential gig service for $40 per month.

According to the Tribune, 62 percent of 1,030 returned surveys indicated yes or maybe as to whether or not they would be interested in signing up for high-speed service at home or at work; 38 percent said no. City officials are optimistic that the project will blossom even beyond those figures:

“I think once it starts rolling out, a lot of people will see what type of services they’re getting through the city,” [Mayor Greg] Woodyard said, “and they’ll get those bundle packages and we’ll be able to offer them a better product than they’re currently getting at a cheaper price. I think more people will sign up for it in that point in time.”

Woodyard also noted that Chanute is setting an example for other Kansans suffering from poor connectivity:

“A lot of other communities are looking at starting to do this, possibly,” Woodyard said. “We are the trendsetters for the state of Kansas. Everybody’s looking at us to see how we go through the process of doing the fiber project.”

For the complete story on Chanute's network, download our 2012 report Chanute’s Gig: One Rural Kansas Community’s Tradition of Innovation Led to a Gigabit and Ubiquitous Wireless Coverage.

Comcast Seeks "True Gig" Trademark for a Network Incapable of Offering a True Gig

In a world yearning for a gigabit Internet connection, what do you do if your legacy cable network cannot offer it? If you are Comcast, you seek a trademark for the term "True Gig." (More coverage from Ars Technica on this.)

Comcast's cable network may soon (testing in 2015?) be capable of offering a downstream gigabit but will not be able to come close to a gigabit in the upstream direction. Nonetheless, apparently it is planning to advertise its service as a "True Gig," likely in competition with Google in Provo since it plans to swap the Chattanooga territory to Charter as part of the Time Warner Cable merger plan. (Comcast is certainly not fleeing that market with its tail between its legs for having been spanked so badly by the city's municipal network).

Lest we forget, the Comcast network is shared among many users; its ability to actually deliver a gig is dependent on whether your neighbors are using their connections. So unlike a gigabit on a fiber network, the Comcast "True Gig" will likely be an inferior experience to a modern fiber network.

Google, of course, actually offers a gigabit in both directions. The same is true of Chattanooga and most municipal gigabit offers - symmetrical because who wants to wait hours to upload to the cloud if you can download in seconds?

And in case you forgot, the "True Gig" is coming from the same company that has taken credit for all fiber deployments announced in 2014 - on the thin premise that everything happening after Comcast announced its proposed takeover of Time Warner Cable was caused by the proposed takeover.

To recap... Comcast does not yet offer a gigabit service but has tried to take credit for most of the communities that either have a gig or could soon get it. They are technically incapable of offering an actual symmetrical gigabit. And to the extent they may offer a gigabit in only one direction, it will be shared among hundreds of homes and generally inferior to a downstream gig delivered by a fiber network. Yet, they will market their service as a "True Gig."

If there are indeed parallel universes, I would like to to request reassignment to one where a Comcast move like this is treated as it should be ... like the funniest joke in the world. However - that planet probably would have already died laughing at AT&T's Fiber-to-the-Press-Release antics or the hilarious claim by some coin-operated-research-outfits that the Comcast - Time Warner Cable takeover would be pro-consumer. OK - bad plan, I admit it. But seriously, I'm not allowed to cuss in these posts, so give me a break.

Video: 
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Community Broadband Media Roundup - October 24

On this week’s community broadband media roundup, we have more reverberations from Next Century Cities, a forward-thinking coalition of cities that promises real progress in establishing or restoring local authority for broadband networks. For the inside scoop on the launch, we suggest taking a look at Ann L. Kim’s Friday Q&A with Deb Socia, the executive director of the organization. 

Here’s an excerpt: 

Q: So when you say you work with cities that are either looking to get next generation broadband or already have it, what does that entail?

A: …We are working with elected officials and also employees, like CIOs and city managers and so forth, and the goal is to really help them figure out their pathway. This is pretty hard work and we recognize that there’s always a local context and so we don’t advocate any one way to do this work, but we help cities think about it.

So [are] you gonna work with an incumbent provider, are you gonna build your own, are you gonna work with a private non-profit? How are you gonna make it happen? What are the alternatives for you? And how can we best support you?

Multichannel’s Jeff Baumgartner covered the launch in Santa Monica as well. The bipartisan coalition offers members collaboration opportunities and support for those communities that face incumbent pressure when they announce plans to move forward with publicly-owned broadband programs. According to China Topix’s David Curry, neither Comcast nor Time Warner Cable have made announcements about gig networks, “with Time Warner Cable even go as far as saying "customers don't want 1Gbps Internet speeds", a statement ridiculed on the Web.”  

Rest assured, there will be much more coverage on this organization’s work in the weeks to come. 

San Francisco is catching on to the “Dig Once” strategy, an idea that is known to help build public fiber networks incrementally, and at a huge cost-savings to communities. According to Marisa Lagos with the San Francisco Chronicle, City Supervisor David Chiu is pushing an ordinance that would require public and private agencies that dig up the streets for other work allow the placement of city-owned conduits that can be used for fiber. 

[Chiu] hopes it will allow San Francisco to help bridge the “digital divide” by eventually letting residents and businesses access fast, inexpensive, city-owned broadband service…

“Quality broadband service is no longer a luxury — it’s a necessity for our economy and our education system. You need access to high-speed broadband to compete, just as you needed access to water, roads and electricity in the 20th century,” Chiu said, noting that the United States lags behind smaller countries “when it comes to speed and reliability.”

The Chamber of Commerce, Comcast and AT&T have agreed to stay neutral on the bill, which will most certainly help it move forward.

“There was a time we thought everyone would have free electricity because of nuclear power,” [Chris Mitchell] said. “I think everyone will be paying for high-quality Internet access for the foreseeable future. But the installation of city-owned fiber will allow San Francisco officials to make sure no one is left without high-speed access, if private companies only build out some areas of town, for example.

“This small step will really enable San Francisco to have more freedom in the future to be creative,” Chris Mitchell said. “It won’t be acceptable for some kids to have access to great Internet service and some not to, so this is important to have.”

Chattanooga’s Electric Power Board (EPB) has saved an estimated $50 million for local businesses due to the smart grid over just the previous 2 years. Now, they’re partnering with Oak Ridge National Laboratory to improve efficiency for renewables like solar and wind. The partnership will allow Oak Ridge to help EPB gather and analyze data to find out where abnormalities and problems might arise. 

"Mid-sized Southern cities in the U.S. are not generally thought of as being ahead of the technological curve," [Mayor] Berke said. "The Gig changed that. We are now ahead of the curve, with other cities looking to us as a leader in the Innovation Century."

Arkansas K-12 educators are asking lawmakers to help them get faster broadband connections. Ryan Saylor with The City Wire explains how the cable and telephone company networks may be cost-prohibitive for public institutions, and why the state’s education board is hoping to tap in to public networks. The Arkansas Education Association’s president, Brenda Robinson says the schools are stuck between being mandated to provide digital learning courses and not having the resources. Current law prohibits schools from using more efficient publicly owned networks.

 “[O]ur state will not be able to fulfill our constitutional obligation of providing an adequate education for our children and the next generation will find themselves on the wrong side of the ‘digital divide.'”

Net Neutrality

“If the Internet is to remain an open, accessible platform for the free flow of ideas, we need strong rules of the road in place to guarantee those protections.”

Vermont Senator Patrick Leahy, made a strong statement for Net Neutrality this week when he wrote a letter directly to Comcast Executive VP David Cohen asking him to come out much more strongly in favor of Net Neutrality. Sam Gustin of Motherboard had the story: 

Leahy’s letter could increase the pressure on the Federal Communications Commission, which is evaluating whether the proposed merger advances the public interest, to require Comcast to make a strong net neutrality commitment as part of the deal.

It also demonstrates how closely net neutrality is intertwined with concerns over consolidation in the broadband industry. Comcast and Time Warner Cable are the two largest cable companies in the country, and a union between them would create a broadband colossus with immense market power.

And then, Leahy went further. In The Capital’s Eric Hal Schwartz covered Leahy’s second letter, this time to the leaders of AT&T, Verizon, and Time Warner Cable as well. 

Leahy said he is worried that the FCC's upcoming rule changes to net neutrality will let ISPs arrange deals for websites to pay for faster user access. That's something Leahy said he is committed to stopping and he wants the ISPs to make a legally binding promise that they won't ever engage in that practices, regardless of what the FCC rules.

Which brings up an excellent question, says GovTech’s Brian Heaton. What does the FCC’s authority on Net Neutrality really mean? 

City Net Brings 100 Gbps to Santa Monica, California

For one of the fastest municipal networks in the U.S., travel to Santa Monica and sample City Net. The City just announced network capacity and speed upgrades to 100 Gbps. City Net is available to many local businesses and connects key community anchor institutions.

The entertainment, tech, and healthcare industries have a strong presence in Santa Monica and City Net officials expect them to be among the first to take advantage of the upgrade. Other area businesses are applauding the upgrade. From the press release:

Jeremy Foint, IT Manager of Loews Santa Monica Beach Hotel overwhelmingly approves, “With the annual American Film Market campus, tech expos, and Fortune500 corporate events convening in Santa Monica, it’s comforting to know Loews can accommodate the most demanding network requirements. I know CityNet will take care of us.”

We dug deep into the story of this publicly owned network for our case study, Santa Monica City Net: In Incremental Approach to Building a Fiber Optic Network. We also spoke with CIO Jory Wolf for episode #90 of the Community Broadband Bits podcast. Santa Monica took a measured approach by reinvesting funds they saved when they ended leased services. They now offer dark and lit fiber. The community has won numerous awards.

Nonprofit ISP Offers “Big Gig Challenge” To Connect Northeast Ohio

OneCommunity, a nonprofit ISP and data services provider in northeast Ohio, recently announced an interesting initiative to spur the expansion of fiber optic connectivity in the region - it will help pay the costs. For municipalities (or organizations with municipal support) that build “community-wide” networks with gigabit speed, OneCommunity is offering grant funds to cover 25% of project costs, up to $2 million. According to their website, the ISP hopes to make it’s “Big Gig Challenge” a recurring yearly program. 

OneCommunity, which has network operations in 24 counties and 2,500 miles of fiber assets throughout northeast Ohio, offers services to a wide variety of anchor institutions, businesses, schools, and local governments. The 11 year old nonprofit does not offer residential services, but does serve over 2,300 public facilities. 

In an interview with GovTech, OneCommunity COO Brett Lindsey described the “Big Gig” grant program as an “opportunity to drive fiber expansion deeper into communities that we traverse through with our middle-mile network. We thought that if we put some skin in the game, it would be the impetus to get people to act.”

Connecting to OneCommunity’s existing network is not a requirement for the grant program, but may prove useful since their long haul fiber assets are already in the ground nearby in many places. The program appears to be very flexible on the nature, scope, and scale of network proposals, as well as the degree to which OneCommunity would be involved. The idea seems to be, as Lindsey stated, “getting people to act” in one way or another. 

Lindsey also emphasized the difficulty of attracting large businesses and private investments into the economically depressed region, particularly in rural areas underserved by data connections. In 2010, OneCommunity was the recipient of a $44 million federal stimulus grant that allowed it to add over 1,000 miles of fiber in predominantly rural areas.

The “Big Gig Challenge” represents an interesting example of the kinds of opportunities a community-focused ISP can create. For smaller communities with limited internet access and infrastructure, dangling an offer of financial support could result in some interesting project proposals. In other places, it may simply get people thinking and talking about the status quo, and what ways they would like to see it change. In either case, it is a debate more communities across the country could benefit from having. As Brett Lindsey put it in the GovTech interview:

We tell city officials: You are really going to have to take charge of your own fate. If you don’t do that, you could be waiting for years — or never — to get fiber infrastructure of any significant level brought into your community. 

Letters of Interest are due by October 3rd. 

Community Broadband Media Roundup - September 19, 2014

The media is picking up on Chairman Wheeler’s notice to big telecom: 4Mbps is not going to cut it anymore. Wheeler said speeds closer to 10Mbps should be classified as high speed. A good step, but by the end of this Media Roundup, you’ll be questioning what that paltry 10 Mbps can do for communities…

Michael Nielsen with Motley Fool pointed out reasons that big telecom should be scared: competition, competition, competition. Meanwhile, AT&T patted itself on the back because they say 98% of its customers have download speeds of 6 Mbps or higher (so they claim). So yes, congratulations are in order, in the most minor way possible. 

Want another reason big telecom should be scared? Free Marketeers are on board with Net Neutrality. From James J. Heaney: 

“… it seems odd for a conservative – whether an old-guard big-business Bush-era conservative or a new-guard Paulite libertarian conservative – to support Net Neutrality.

Except I do Internet for a living, and I am one of the lucky ones who actually knows what Net Neutrality means and what it’s responding to.  And, folks, I’m afraid that, while L. Gordon Crovitz and Rich Lowry are great pundits with a clear understanding of how Washington and the economy work, they don’t seem to understand how the Internet works, which has led them to some wrong conclusions.”

AT&T/DirecTV Merger:

Ars Technica’s Jon Brodkin reported on our comments about the AT&T/DirecTV merger, noting what the merger could mean for aging infrastructure:

“AT&T’s proposed $48.5 billion acquisition of DirecTV will reduce competition for TV subscribers, increase AT&T’s “incentive to discriminate against online video services,” and give AT&T more reasons to neglect its aging copper network, consumer advocacy groups argue in a petition to deny the merger.”

The Hill also published an article citing ILSR and Public Knowledge’s comments:

‘"[the organizations] told the agency in a petition that the merger would be bad for consumers, especially against the backdrop of other media deals such as Comcast’s bid to buy Time Warner Cable. “Companies may think they need greater scale to enter new markets or keep up with their rivals. But unless they can show how this would benefit consumers, it is immaterial,” they wrote. “If anything, the FCC should be more skeptical of mergers that come in waves, since in the aggregate consumers suffer from a more highly concentrated, centralized marketplace, with fewer choices, homogenous offerings and increased likelihood of coordinated effects.”’

Internet Access Competition Update:

Did you know that communities that have a service provider that offers a 1 Gig service have a per capita GDP that’s 1.1 percent higher than other communities that have little or no gigabit services? That’s the report from Sean Buckley on Fierce Telecom this week.

But cities that didn’t win the “gigabit google lottery” are taking action on their own. According to Denise Linn of Next City, Louisiville has identified three companies that will invest in a gig in areas of town. 

“Though Louisville’s future network will not be supported with public funds (in contrast to projects in Wilson, North Carolina or Lafayette, Louisiana, for example), initial momentum certainly came from the bottom up. Demand for faster speeds was fostered and articulated by the city’s residents, academics and the business community.”

Of course we think a publicly-owned network is a better bet for the city, but this is a good step.

Meantime, a conference on gigabit networks sparked three communities in Connecticut to explore their options. They modeled their request after Louisville.  Fierce Telecom and The Westminster Dispatch had the story: 

"As soon as we started the conversation about gig networks, we heard from businesses, universities, high-tech start-ups, mayors and first selectmen – really such a variety of stakeholders – about how greater Internet speeds at lower costs are essential to their functioning," Katz said in a West Hartford Patch article. "We knew it was an important economic development tool, but we've learned gig networks are also essential for medicine, precision manufacturing, education, e-government, many different people in different sectors clamoring for gig networks."

Jason Myers reported that the initiative is “open to any and all municipalities in Connecticut." Organizers hope that network partners will be encouraged by more cities joining the initiative. 

Big News from the land of 10,000 lakes: Joan Engebretson reported in Next City that Paul Bunyan Communications — a co-op in Northern Minnesota will be home to the nation’s largest public gigabit service as early as 2015. The “GigaZone” will cover about five thousand square miles. 

“Expanding broadband is a great equalizing force for boosting rural economies. Today you don't need to live off a major highway or in a bustling city to find a good job, start a new business, or get a high quality education but today you do need a high-speed Internet connection," said Senator Amy Klobuchar, who has championed the effort of rural broadband access at the national level since being elected.”

Seattle’s new Chief Technology Officer has broadband on his mind. GovTech profiled Michael Mattmiller this week

“The Federal Communication Commission is now considering altering the definition of broadband Internet -- increasing the speed from 4 Mbps to 10 Mbps. For a city to keep up with the changing standards, it must consider new avenues, Mattmiller said, like eliminating red tape. The city council is now reviewing proposed changes to the Seattle Department of Transportation’sDirector’s Rule 2-2009, which made it difficult for broadband providers besides Comcast to develop their networks in the city.”

And finally, we thought Santa Monica’s public network was fast before— now they’re raising the bar yet again. The city now boasts a 100 Gigabit per second fiber network.

“This is only the latest milestone in a long line of advancements Santa Monica has made in the broadband arena. We are considered a leader in social tech and have leveraged our fiber optic network to advance free Wi-Fi in public parks and major bus routes, provide internet to our libraries, and connect our schools and college locations. These efforts have contributed to education, economic development, and provide impressive Internet speeds for large conferences and events. We are proud to be the 1st, 100 Gigabit municipal network in the U.S.,” said Jory Wolf, the City of Santa Monica’s Chief Information Officer.

Let that sink in.