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Oregon Town To Build Open Access Fiber Network Complement to Wireless Network

Sandy, a growing community of about 10,000 outside Portland in Oregon, is now building a FTTH network to expand on their successes offering city-run wireless broadband in 2003. They've done the whole wireless thing for 8 years but understand the future is high capacity, high reliability connections.

They are starting with a pilot program that seized on energy created by Google's gigabit initiative -- they held a "Why Wait for Google?" contest that asked neighborhoods to show their potential interest in a fiber-optic network.

When the Cascadia Village and Bornstedt Village won the contest, they were asked how they wanted to be involved:

What happens now? This is a pilot program, so we’re taking it step-by-step. We want the residents and property owners in Cascadia/Bornstedt Villages to be partners with us in making decisions on how this service will work. And we want it to be democratic: whatever we do, it will only be with the support of the majority of the residents and property owners who get involved.

The first thing we need to know is: how would you like to be involved? We have a lot of options, depending on your level of interest, and how busy your life is. On one end of the spectrum is simply asking us to keep you informed through e-mail or letters, and at the other end is your active participation (over a course of several meetings) in the detailed planning for the implementation of this pilot project. (Note: in the case of rental properties, we encourage both the landlord and the tenant to stay involved, and we have tried to mail this letter to both, based on available records).

This is a far cry from the massive cable and telco approach of "you will get what we give you when we offer it on the terms we decide."

SandyNet Logo

SandyNet is going to continue providing access to the Internet, but according to the FAQ, they will operate the network on an open access basis, encouraging independent service providers to offer dial tone and television services on it as well.

The Oregonian covered the SandyNet story -- nearby Portland has long considered a publicly owned network that the Oregonian has skeptically covered.

The plan is an underground deployment that could take 10 years. When we have previously seen communities consider such a long deployment horizon, it is because they plan to build the network opportunistically without issuing debt. But Sandy is considering financing the network with muni bonds. Regardless of when it is available, the goal is to offer 100Mbps at $40/month -- which would make it one of the most attractive broadband deals in the nation, indeed on the continent.

Sandy has also passed an ordinance requiring new developments to install underground fiber along with other utilities -- a rule we will take a greater look at in the near future.

Public Ownership is Good for Business

Opponents of public ownership like to claim that publicly owned broadband is somehow hostile to business -- this is a a major Time Warner Cable talking point in North Carolina. The reality is that community networks are incredibly biased in favor of local businesses. Most community fiber networks resulted out of economic development needs, when public leaders realize the fast, reliable, and affordable access to the Internet is a key to attracting businesses (and that massive absentee incumbents rarely care to invest enough to attract those businesses).

Unfortunately, the argument resonates among a public that rarely remembers the U.S. economy was built on key public infrastructure investments -- from roads and highways to water works to universal electrification, if the public didn't own the infrastructure outright, it attempted to regulate in the public interest. And though regulators are frequently captured by those they regulate, the outcome is still better than allowing unaccountable electrical trusts to arbitrarily decide how much to gouge their customers.

When Google was search for a community partner in building its gigabit network, it was not shy about public ownership -- we now know that a key factor in the decision was Kansas City's publicly owned electrical company. Being owned by the City allowed Google a single point of contact and an assurance that they could all work together to build the network.

Surveying businesses in three early FTTH communities revealed dramatic savings:

In terms of fiber-enabled cost savings, 120 businesses in Bristol reported an average of $2,951 in savings per year, while, in Reedsburg, 33 cited annual cost savings averaging $20,682. Twenty Jackson businesses reported cost impacts due to fiber, with one large organization reporting a total of $3 million in savings. The other 19 Jackson respondents reported a net average cost increase of $3,150 per organization.

Make no mistake, public ownership of infrastructure is not anti-business, it is pro-business. There are a handful of businesses that benefit tremendously when they control infrastructure -- but it comes at the expense of the vast majority of businesses and citizens.

Did Texas Preemption Against Community Broadband Derail Austin's Bid for Google Gigabit?

In all of the hubbub around Google's Gigabit project announcement of Kansas City, Kansas, Stacey Higginbotham at GigaOm put up a fascinating post:

Chip Rosenthal headed the grass roots effort to bring Google’s gigabit fiber network to Austin, and he says the Texas capital was on the short list of cities that received a site visit and were in the final rounds. Unfortunately for Austin (and me since I’d be happy to plug into a fiber-to-the-home network) Google passed over the city and chose Kansas City, Kan. instead. Rosenthal, who is one of seven commissioners on the City of Austin’s Technology and Telecommunications Commission (a strictly advisory body), thinks it’s because Texas is one of four states that forbids municipalities from getting involved in building networks.

I frequently said that if I were at Google, I would not partner with a community in a state that has decided to limit local authority to make broadband investments. We do not know for sure what role these laws played, but it is interesting that Kansas City, Missouri, has much less freedom to build telecommunications networks than does Kansas City, Kansas.

From everything we know, this network will owned and operated by Google - which means we do not consider community broadband. Though we salute Google's approach of open access (allowing independent ISPs to use the network), the future of the network is tied to Google, not the community in which it operates. Our hope is that this network helps to prove the model of open access networks, making it more feasible for communities around the country to build their own such networks much as they build the roads on which modern communities depend.

And in the meantime, it is really, really dumb policy to take the choice of whether to build a community network out of the hands of the community.

Christopher Mitchell Discusses NC Muni Network Ban on Tech News Today

Yesterday, the Tech News Today netcast on the TWiT network invited me on to discuss the North Carolina legislation to kill community networks and the Google Gigabit network decision to build in Kansas City, Kansas.  I am on the first 12 minutes or so of the show, embedded below.  

Video: 
See video

Examining Virginia's Broadband Problems

The Roanoke Times recently published an extensive story about broadband, covering everything from what it is to why it is needed and who doesn't have it.

Aside from providing an excellent primer on these issues to those who are new to broadband discussions, Jeff Sturgeon writes about problems often ignored by the media, like the difficulties for companies and other entities can encounter when they need extremely high capacity connections:

Skip Garner directs the Virginia Bioinformatics Institute, which unites the powers of biology and information technology to advance medicine. It is at Virginia Tech. Garner said he, too, finds computing power a constraint. In spite of a 1 gigabit connection, "we are limited in what we could do," Garner said.

When the lab's DNA sequencers pile up data, "we will often put it on a 1-terabyte drive ... and FedEx it to our customers," Garner said.

An upgrade to 10 gigabits is coming. He expects it still won't be enough.

It might appear that new facilities would not have such problems, but even the 5-month-old Virginia Tech Carilion Research Institute near downtown Roanoke is not satisfied with its Web service. While the speed is good at 10 gigabits, the cost it pays to service providers is staggering.

"It's in the tens of thousands of dollars a month," said Executive Director Michael Friedlander.

This is one world. Communities with their own fiber networks are another -- where these connections are not prohibitively expensive. And yet another world is the world of several rural Minnesota Counties, who cannot even get T.1 lines from incumbent phone providers. In Cook County, in 2008, a company was quoted $600,000 to install a T.1 line. Yes, $600,000 - I had to hear it twice to make sure I wasn't imagining it.

The article explores Design Nine founder Andrew Cohill's thoughts on improving broadband access. Cohill mentions Wired West, a network we have written about previously.

"We think it's got to be treated like essential public infrastructure," he said.

That way, access would be open to any service provider on equal footing. Just as anyone could launch a cab company or food delivery service over the road system, anyone will be able to use the information highway's new lanes. This creates competition, and competition lowers prices.

Cohill has seen it happen elsewhere. One of about 100 U.S. regions getting aggressive in this area is western Massachusetts, where 47 localities combined efforts to install fiber-optic Internet cabling to homes covering about one-quarter of the state, he said.

"Their vision is fiber everywhere. Fiber to every home, every business," Cohill said.

In western Massachusetts, Cohill ran into Douglas Trumbull, the 68-year-old film director behind the special effects in such films as "2001: A Space Odyssey," "Close Encounters of the Third Kind," "Silent Running" and "Brainstorm."

At his home in the area, Trumbull wants a 300 mbps connection to support his continued work in the special effects business; his phone company-provided Web access is too slow. Trumbull said that if high-speed connectivity were available through the region where he lives, "he'd bring 100 more, very high paying movie jobs, technical jobs to western Massachusetts. Why western Massachusetts? He thinks it's a beautiful place to live. It's the same mountain chain as down here. So there's tremendous opportunities, but it's not about attracting another manufacturer," Cohill said.

And finally, the article returns to a network in their own backyard -- the Wired Road, a publicly owned open access network.

Fiber optic-based Web service from three providers is available at 60 buildings in downtown Galax over lines installed by a three-government authority. The Galax-based Wired Road Broadband Authority expects to finish this year with $3 million raised and spent out of a $42 million plan to connect every home, business and community institution in Galax and the counties of Carroll and Grayson, a region of about 54,000 people, that will want Internet services that require fiber.

Private telecommunications providers could not be counted on to do the work, because the payback would have been too low, said Mike Maynard, a Grayson County supervisor who chairs the Wired Road board.

"The only reason we're in this is to get people connected," Maynard said. "If we had to wait for private entities to invest $42 million in the region, I don't know that it would ever happen."

Exactly. Many communities are realizing they need to invest in themselves before anyone else will invest in them. Unfortunately, Virginia is one of many states that have created unique barriers to discourage community networks. We should be long past coddling monopolies with laws to restrict communities from building the networks they need. But in Virginia, we aren't.

Interview with Wilson's Greenlight Community Fiber Network

This is a good 5 minute interview discussing what Wilson has done to build the first citywide FTTH network in North Carolina. Greenlight has a business customer taking 1Gbps -- something that would undoubtedly have been totally cost-prohibitive (and possibly just unavailable) if the City had not made its broadband infrastructure investment.

Toward the end, Brian Bowman is asked if he recommends all communities build a similar network. His answer is very wise: all communities should have the right to do it and they should decide for themselves based on their situation. That is our position as well.

Using Faster Broadband

Chattanooga's Times Free Press explained how locals are using the nation's fastest broadband network. You may remember that Chattanooga's gigabit service generated a fair amount of attention back in September:

Searching for “gigabit” on Google after the announcement revealed 298 news articles about Chattanooga’s milestone, and more than 9 million Twitter impressions within 48 hours, according to the Chattanooga Area Chamber of Commerce.

We already reported that one company (HomeServe) cited the network as a reason for bringing 140 jobs to Chattanooga. This article quotes their director of IT infrastructure: “This network will be so fast that it will be like we’re right next door." That company is located all over the East coast: Miami, New York, Connecticut, etc.

Diagnostic Radiology Consultants are excited about the network:

“The bandwidth is a huge part of the practice because each one of these images is huge, about 300 megs,” Busch said.

With DRC’s outgoing server uploading information at a gigabit, the nearly 700 doctors who use his service will be able to quickly access body scans anytime, from any computer, instead of on the more limited point to point networks many clinics and hospitals currently use.

Another company in the carpet industry needs the faster connections to meet their clients needs and become more efficient. As customers and clients request more streaming media, they greatly need to increase their upstream capacity.

It isn't just about business, but education and entertainment…

The Tennessee Aquarium has already taken several steps to prepare for increased demand for streaming HD content, said Thom Benson, communications manager for the Aquarium.

The Chattanooga landmark has already set up two webcams to stream live images of aquatic life to the Aquarium’s online visitors, and one HD camera to observe weather conditions outside. All three cameras will be available on the website, he said, and are part of a push to provide content not available elsewhere.

Along with the “webisodes” Benson’s team uploaded to YouTube chronicling the birth of Chattanooga’s penguin chicks, the Aquarium’s foray into live HD streaming is just a taste of what is to come, said EPB’s DePriest.

Aside from describing how the network is starting to be used, it is also a good read to get a sense of how much work goes on behind the scenes to take full advantage of the network. Building a broadband network is "a" step, not the last step.

Rural Washington Network, Chelan PUD, Increases Speeds and Expands

The Chelan Public Utility District in Washington state is upgrading network capacity as it starts expanding the network following its broadband stimulus award. We previously covered their consideration of whether to expand from passing 80% of the territory to 98%.

Chelan is one of the most rural publicly owned fiber networks as well as one of the oldest ones. In a rarity, it looks likely to run in the red permanently (the pains of rural, mountain terrain) with the support of most ratepayers. These ratepayers recognize the many benefits of having the network outweigh its inability to entirely pay for itself. The utility also runs a sewer project that is subsidized by wholesale electricity sales. Though some areas in Chelan are served by Charter and Frontier, the more remote folks would have no broadband access if not for the PUD.

With the planned upgrades in 2011, Chelan's open access services will offer far faster speeds than available from the cable and DSL providers. Under Washington law, the PUDs cannot sell telecommunications services directly to customer. The PUD builds the network infrastructure and allows independent service providers to lease access while competing with each other for subscribers. Though this is a great approach for creating a competitive broadband market, it has proved difficult to finance (if one believes this essential infrastructure should not be subsidized as roads are).

When the PUD considered whether to pursue the expansion (meaning taking a federal grant covering 75% of the costs and agreeing to run the network for 22 years), it asked the ratepayers for feedback:

Sixty-four percent of 450 randomly chosen Chelan County registered voters who were part of phone survey in August said they favor taking the grant and completing the buildout, even if it means their electric bills will go up by as much as 3 percent — about $1.50 more on a $50 per month power bill.

On November 9, PUD Commissioners approved the rate increase.

Chelan's service providers currently offer connections of 6Mbps/384kbps or 12 Mbps/384kbps. As with other early BPON networks, the speeds were asymmetrical. While other community fiber networks have upgraded to offer much faster symmetrical speeds, Chelan has opted to continue a heavily asymmetric offering.

They will continue the 6Mbps option (for service providers who are not ready to upgrade their equipment to offer faster speeds) while adding a 25/2 and 100/100 option. They are also adding a 1 Gbps commercial option.

Frontier and Charter advertise maximum connections at 7/.768 and 25/3 respectively.

Service providers on the network will have to pay higher rates to continue using the network, though they also will get a discount from the PUD when they sign up customers for more than one service (bundling).

Providers will have to pay an extra $4 per customer while the bundling discount will be $2 or $3.

Service providers will have to pay Chelan $22.35 for a 100Mbps connection to a customer and $19.35 for either a 25/2 or 6/.384 connection.

However, there are some complications (detailed in this article toward the end) -- because Chelan was such a pioneer of this technology, the earliest subscribers will have to wait longer to access faster connections.

More Resources for Community Networks

As more and more of America confronts the reality that communities need better broadband networks -- networks that respond to their needs first rather than the desires of shareholders in some absentee company -- we are seeing more resources for communities determined to preserve their self-determination.

As one who has deep misgivings about Facebook increasingly being a mediator of content, I am glad to note that Communities United for Broadband has a website in addition to their Facebook page.

As Google continues to ponder which communities will get the Google Gigabit network(s), it has announced a Google Fiber for Communities website intended to get citizens involved in pushing for pro-broadband policies at the local, state, and federal levels.

Regarding the Google Gigabit, some thought the Google might be showing interest in UTOPIA with some recent meetings, but Jesse Harris at FreeUTOPIA probably has the correct analysis: far too early to tell.

Thoughts on the Google Fiber Initiative

Readers undoubtedly know that Google has proposed a limited fiber-to-the-home open access network rollout that will offer gigabit speeds. Communities are applying to be considered -- all we know at this point is that Google envisions ultimately serving some 50,000 - 500,000 subscribers.

Parts of this announcement are very exciting for those of us working to create better networks that serve community interests. I think the long term impact of it being open access may well dwarf the impact of having gigabit speeds available to some at "competitive" rates (though one wonders how rates can be competitive when the service is unlike any other?).

The idea of open access -- where the network is an infrastructure that supports independent service providers, creating a true market for broadband services -- is a game changer. Unfortunately, the number of people served by open access networks in the U.S. has been too small to prove the model (as I discussed here). If Google connects half a million people with an open access network, it could change the landscape of broadband networks, pushing us toward a non monopolistic world... but probably not in the first year or two. These changes take time.

Beyond that, the gigabit test bed will be very interesting. Lafayette's LUS Fiber has been experimenting with the 100Mbps network and now Google will be upping the ante. Given the number of people who are excited and the number of communities announcing their application, it is clear that the telecom carriers are not meeting community needs.

Though I think the experiment interesting, I hope it is limited. My fear, which I do believe is premature but has poked its head up nonetheless, is that Google may launch another round of Earthlink Wi-Fi free-lunch hopes from local governments. Those who once pinned their hopes on an outside company building the network they wanted have now recognized the folly. Even though Heinlein's TANSTAAFL warning came half a century ago, few seem to have internalized the lesson. There Ain't No Such Thing As A Free Lunch.

10 years ago, Google was a different company. In 10 years, we have no idea what Google's interest will be but we can be sure that communities will need connectivity that puts local citizens and businesses before profits. Will Google's network serve community interests then? Maybe. Publicly owned networks offer self-determination in an uncertain future.

I think Google's program can do much good, so long as communities aren't misled into believing the search (advertising) king is going to solve their problems for them. I wouldn't discourage communities from applying for this fascinating program -- 1 gigabit speeds will certainly set them apart -- but for most communities, this will be a distraction from what they need to do themselves to succeed in the 21st century.