The following stories have been tagged competition ← Back to All Tags

Santa Fe's Targeted Fiber Investment - Community Broadband Bits Podcast 152

After Santa Fe found its residents and businesses were often paying the same rates for connections at half the speed of peers in Albuquerque, the City began investigating the local broadband market. This week on Community Broadband Bits, Sean Moody joins us to discuss the situation and what Santa Fe is doing to spur more investment.

Sean works in the Economic Development Division of the City as a Special Projects Administrator. He explains the bottleneck in middle mile access that allowed CenturyLink to charge higher rates for backhaul than are common in similar communities.

The City decided to invest $1 million in a new fiber link that would bypass the choke point and allow various independent companies to have a better choice for access to the wider Internet. Along the way, the City partnered with the state for additional benefits.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 25 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Persson for the music, licensed using Creative Commons. The song is "Blues walk."

Small Texas Town Don't Need No Stinkin' CenturyLink

The people in Kemp, population 1,100, have officially said "adios" to CenturyLink and now give their business to a local wireless provider, reports Government Technology. According to the article, the community grew tired of slipshod service and repeated service interruptions:

At one point, the city lost its Internet connection for five days. “That was the last straw because that was detrimental to us, because we depend on the Internet so much more, especially with our phone system," said [City Administrator Regina] Kiser. "We had just gone with the voice over IP [Internet protocol] when our system went down for five days, so you try to call city hall about various things, including the police department, and there was no phone. So, that was horrible.”

After a year of requests from the municipality for better service went unheeded, government officials decided it was time to make some changes:

“If you’re a government entity and you call in, they send you into cyberspace somewhere and your phone just rings and rings and rings, and I guess there’s just not any commission to be made on cities from what I’m understanding,” Kiser said. “This problem’s been going on for about a year, as far as not having the power we need to run our court program. So we tried, but it was just impossible to deal with CenturyLink.”

Kemp now works with One Ring Networks, where they receive service for a rate of $450 per month. There was no installation charge and in exchange, One Ring Networks is able to expand its network in the community. It now has the opportunity to sell service to residents and businesses in Kemp.

Unlike the typical "up to" speeds the big incumbents offer, One Ring Networks claims it "carves out" 5 Mbps download and upload for each subscriber, says Kris Maher from One Ring Networks:

“With the other carriers, that 10 Mbps by whatever is a best effort service, which means it can go up to 10 Mbps, but 10 Mbps isn’t guaranteed. Ours is right at 5 and it’s always going to be at 5, no matter who else is on our network.”

Kiser notes that residents are happy with their new provider and that, despite a brief delay caused by inclement weather, the upgrade was a simple task:

“CenturyLink’s been the only game in town for so long, they took advantage of the situation and they’re probably freaking out now that they have some competition for the first time,” Kiser said.

Small ISPs and Paperwork - Community Broadband Bits Episode 151

Back in March, I spoke at the Iowa Association of Municipal Utilities Telecom conference, which is always an event with interesting people. While there, I met Doug Hammer and Krista Allen of Harlan Utilities. With just over 5,000 people, Harlan is small but they actually have better Internet and cable choices than most of us, in large part due to the municipal utility.

Doug is the Director of Marketing and Krista the Director of Finance & Customer Service. We spoke again for this week's show about the challenge small ISPs have in just completing the paperwork required of ISPs by the federal government. Though small utilities like Harlan have only a few staff people, they are subject to many of the same forms as much larger companies.

We talk about the paperwork, but also some of the benefits that Harlan's municipal utility brings to the community.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 22 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Persson for the music, licensed using Creative Commons. The song is "Blues walk."

Morristown FiberNET in the Spotlight

In a recent report, WBIR Knoxville shined the spotlight on Morristown. The article and video discuss how FiberNET has improved its telecommunications landscape by inspiring competition, offered better connectivity to the region, and how state law prevents other towns from reaping similar benefits. We encourage you to watch both of the videos below.

Morristown's utility head describes how it considers high-speed Internet access to be a necessary utility:

"You had railroads, you had interstates, and this is the new infrastructure cities need to have," said Jody Wigington, CEO of Morristown Utility Systems (MUS). "To us, this really is as essential to economic development as having electricity or water."

Morristown began offering gigabit service via its FTTH network in 2012. It began serving residents and businesses in 2006 because the community was fed up with poor service from incumbents. Since then, FiberNET has stimulated economic development, saved public dollars, and boosted competition from private providers. 

Prices for Internet access are considerably lower in Morristown than similar communities. From the article:

Morristown's Internet service is more expensive than Chattanooga, but much faster than the rest of the region at a comparable price. A 100 Mbps synchronous connection is $75 per month. Advertised rates for Comcast in Knoxville show a price of almost $80 per month for a 50 Mbps connection with much slower upload speeds. A 50 Mbps connection in Morristown costs $40 per month. The cable Internet option in Morristown is Charter, with an advertised price of 35 Mbps for $40 a month.

As we have seen time and again, the presence of a municipal network (nay, just the rumor of one!) inspires private providers to improve their services. AT&T offers gigabit service in Morristown and Comcast has announced it plans on offering 2 gigabit service in Chattanooga.

"Without a major disruptor like we've seen in Chattanooga and in Morristown, there's really no reason for these guys [private companies] to go out of their way to make a big spend to make bandwidth faster. It just simply doesn't make good business sense," said [Dan] Thompson, [senior analyst for Claris Networks].

Thompson said he does not believe there should be any concern that municipal Internet would result in a monopoly akin to other utilities.

"If you go to Chattanooga, Comcast advertises like crazy on billboards down there. You don't see that here [in Knoxville] at all. Comcast is still there. AT&T is still there. They're still viable options."

Beyond offering better service to residents, FiberNET also attracts more employers. In 2013, we reported on 228 new jobs in the community, attracted here in part because of FiberNET's reliability. Most recently:

"There is a new call center that is looking at relocating to Morristown. They told us the local provider can get them fiber in the building for around $1,000. The guy from our utility company told him we've already got fiber to your front door and we'll put it in the building for free because you're going to be helping our economy and jobs. Their jaws drop. Businesses really are shocked by what we have here," said [President of the Morristown Chamber of Commerce Marshall] Ramsey. "They looked at Blount County and looked at Knoxville, but the confidence in the networks just isn't there right now."

Even though the FCC struck down state restrictions on municipal networks in Tennessee, local communities are not rushing to deploy their own networks. The state is challenging the federal action, and no local community has announced an expansion due to the uncertainty around the appeal. With this appeal, the state of Tennessee is wasting taxpayer dollars to deliberately slow the deployment of essential infrastructure in rural communities.

As Wigington acknowledges in the story, a municipal fiber network is no small endeavor. Nevertheless, only a local community can know if it has the ability, drive, and need to venture into Internet access as a utility.

Wigington said the decision of whether to compete with private industry should ultimately be made by the cities, not made for them by the legislature or the cable companies.

"Cities need to be able to make this decision."

Seth's Tale of Comcast Woe Perfectly Illustrates Many Internet Policy Problems

Ideally, working from home allows one to choose the environment where he or she can be most productive. In the case of Seth that was Kitsap County in Washington State. Unfortunately, incompetence on the part of Comcast, CenturyLink, and official broadband maps led Seth down a road of frustration that will ultimately require him to sell his house in order to work from home.

The Consumerist recently reported on Seth's story, the details of which ring true to many readers who have ever dealt with the cable behemoth. This incident is another example of how the cable giant has managed to retain its spotless record as one of the most hated companies in America

Seth, a software developer, provides a detailed timeline of his experience on his blog. In his intro:

Late last year we bought a house in Kitsap County, Washington — the first house I’ve ever owned, actually. I work remotely full time as a software developer, so my core concern was having good, solid, fast broadband available. In Kitsap County, that’s pretty much limited to Comcast, so finding a place with Comcast already installed was number one on our priority list.

We found just such a place. It met all of our criteria, and more. It had a lovely secluded view of trees, a nice kitchen, and a great home office with a separate entrance. After we called (twice!) to verify that Comcast was available, we made an offer.

The Consumerist correctly describes the next three months as "Kafkaesque." Comcast Technicians appear with no notice, do not appear for scheduled appointments, and file mysteriously misplaced "tickets" and "requests." When technicians did appear as scheduled, they are always surprised by what they saw: no connection to the house, no Comcast box on the dwelling, a home too far away from Comcast infrastructure to be hooked up. Every technician sent to work on the problem appeared with no notes or no prior knowledge of the situation.

It was the typical endless hamster wheel with cruel emotional torture thrown in for sport. At times customer service representatives Seth managed to reach over the phone would build up his hopes, telling him that his requests were in order, progress was being made behind the scenes, that it was only a matter of time before his Internet access was up and running. Then after a period of silence, Seth would call, and he would be told that whatever request he was waiting for was nonexistent, "timed out," or in one instance had actually been completed.

Seth usually had to be the one to make the call to Comcast for follow up. There was one notable exception, however on February 26th:

Oh, this is fun. I got a call from a generic Comcast call center this morning asking me why I cancelled my latest installation appointment. Insult to injury, they started to up-sell me on all the great things I’d be missing out on if I didn’t reschedule! I just hung up.

In mid-March, Comcast discussed the possibility of building out its network to Seth's house but he would have to pay for at least a portion of the costs; he was interested. Pre-survey estimates were up to $60,000. A week later, Comcast contacted Seth and told him that they would not do the extension even if Seth paid for the entire thing. 

Comcast was not the only provider Seth contacted. When he first learned that Comcast did not connect his home, he contacted CenturyLink. He was told by a customer service tech he would be hooked up right away but the company called him the next day to tell him that CenturyLink would not be serving his needs. They were not adding new customers in his area. 

Nevertheless, he was charged more than $100 for service he never could have received. Seth had to jump through hoops to get his "account" zeroed out. CenturyLink's website showed that they DID serve Seth's address, reports the Consumerist and, even though they have claimed to have updated the problem, the error remained as of March 23rd.

Official maps created by the state based on data supplied by providers, are grossly incorrect. As a result, Seth's zip code is supposedly served by a number of providers. While that may be true on paper, it doesn't do Seth much good. A number of those providers, including Comcast and CenturyLink (as Seth is painfully aware) do not serve his home. Satellite does not cannot the VPN connection he needs due to latency inherent in satellite Internet connections. He is using cellular wireless as a last resort now, but only as a short term solution because it is limited and expensive.

Ironically, Seth's new home is not far from the Kitsap Public Utility District fiber network. Because state barriers require the Kitsap PUD to operate the network as a wholesale only model, however, Seth cannot hook up for high-speed Internet. He would only be able to connect if a provider chose to use the infrastructure to offer services to him.

Here we have the perfect storm of harmful state barriers, corporate gigantism, and  "incumbetence." From his blog:

I’m devastated. This means we have to sell the house. The house that I bought in December, and have lived in for only two months.

I don’t know where we go from here. I don’t know if there’s any kind of recourse. I do know that throughout this process, Comcast has lied. I don’t throw that word around lightly or flippantly, I mean it sincerely. They’ve fed me false information from the start, and it’s hurt me very badly.

This whole thing would have been avoided if only Comcast had said, right at the start, that they didn’t serve this address. Just that one thing would have made me strike this house off the list.

I don’t know exactly how much money I’m going to lose when I sell, but it’s going to be substantial. Three months of equity in a house isn’t a lot of money compared to sellers fees, excise taxes, and other moving expenses.

So, good bye dream house. You were the first house I ever owned, I’ll miss you.

But putting all the blame on Comcast ignores the failed public policy that allows Comcast to act like this. Providers like Comcast lobbied legislators and DC to ensure no map could be created that would be useful. The carriers have refused to turn over data at a granular level that would prevent these mistakes from happening. And whether it is the states, the NTIA, or the FCC, they have wasted hundreds of millions of dollars on maps that do little more than allow carriers to falsely claim there is no broadband problem in this country.

And we have utterly failed to hold our elected leaders to account for this corrupt system. Something needs to change - but it won't until people stand up and demand an end to these stories.

Orlando Sentinel Op-Ed - Local governments should make broadband choices

The Orlando Sentinel published this op-ed about local government action for broadband networks on March 11, 2015. 

Local governments should make broadband choices
By Christopher Mitchell

Community broadband must be a local choice, a guest columnist writes.

When Comcast announced plans last year to invest hundreds of millions in theme parks in Florida and California, its customers may have wondered why the cable giant wasn't using those funds to deliver a faster or more reliable Internet connection. While Comcast's Universal Studios faces competition from Walt Disney World, most people don't have a real choice in high-speed Internet access.

The Federal Communications Commission has just boosted the broadband definition from 4 megabits per second to 25 mbps. At that speed, some 75 percent of Americans have no choice in providers — they are stuck with one or none.

The rest of America is living in the future, often because their local government rolled up its sleeves and got involved. In some of these communities, the local government built its own network and others worked with a trusted partner. Chattanooga's city-owned electric utility built the nation's first citywide gigabit network, which is about 100 times faster than the average connection today.

Google is famously working with some bigger cities, whereas local provider GWI in Maine has partnered with several local governments to expand gigabit access.

However, the big cable and telephone companies have almost always refused to work with local governments. Instead, they've lobbied states to restrict the right of local governments to build or partner in this essential infrastructure.

In Florida, the law puts restrictions on local governments that do not apply to the private sector, such as a strict profitability timetable that can be unrealistic for large capital investments regardless of being privately or publicly owned. Some 20 states have such barriers that limit competition by effectively taking the decision away from communities.

In January, President Obama spoke out in favor of local governments being able to make these investments and partnerships without state interference. He was in Cedar Falls, Iowa, which has one of the oldest municipal broadband networks in the country, but it's the first city in the state with citywide gigabit access. A local business owner, whose business had been able to thrive in its hometown due to the public network and its world-class access, introduced the president.

Both Obama and the FCC are taking actions to remove barriers to local authority, but they are seeing strong opposition from some Republicans in Washington, D.C.

National Republicans may be less likely to support an effort that Obama has now championed. But they can't just oppose the president; they will have to oppose their own base, which tends to believe decisions should be made locally. The Institute for Local Self-Reliance analyzed all citywide municipal networks, over 150 communities, and found more than 70 percent reliably vote Republican.

It may be surprising, but at the local level, there tends to be little partisan divide over whether local governments should get involved in a service so dominated by big monopolies. In the city council, it is a practical matter: Do local businesses have the connections they need to be competitive? If not, how can we make sure they do?

A bipartisan group of mayors has already come together to form Next Century Cities, a collaborative nonpartisan organization that includes a diverse group of cities. Some own and operate their own networks, as in Opelika, Ala. Some are working with partners, as Kansas City does. Some, as in Ammon, Idaho, can be hard to find on a map. And then there are cities like Los Angeles that recognize they need something better also.

Fortunately, Florida's law has slowed but not stopped smart local approaches. Martin County built a fiber network that has saved millions of dollars in connections for public facilities and is used by health-care facilities. The city of Palm Coast's FiberNET has saved hundreds of thousands of dollars for the community, while dramatically improving connections for the Flagler County School District and other entities.

Building a modern fiber-optic network is no theme-park ride, but hundreds of local governments have already demonstrated it is well within their capacity. And given that they have to live with the consequences of action or inaction, shouldn't it be their decision?

Christopher Mitchell is the director of Community Broadband Networks at the Institute for Local Self-Reliance in Minneapolis.

Isleboro, Maine, Will Vote to Bond for Municipal Network in May

Isleboro, the Maine island community of 566, will decide in May whether or not they want to bond to build a municipal fiber network, reports The Working Waterfront. The network will be owned by the town who plans to partner with GWI to operate and manage it. 

Currently, about 2/3 of residents on the island use DSL from Fairpoint. While a few locations can reach 15 Mbps download, most residents pay from $20 - $70 for around 3 Mbps download. Upload speeds are much less. GWI also offers point-to-point wireless from the mainland and one side of the island has cellphone.

The firm estimated costs to cover the island to be between $2.5 and $3 million, which would include construction and leasing of poles from Central Maine Power (CMP).  Community leaders will ask voters to approve a municipal bond to fund the project:

The $3 million bond would raise property taxes on a house assessed at $300,000 by about $13.77 per month ($164.25 per year). As a per-month cost, with both the pay-back on the bond and the standard service fee for Internet, the resident of a house valued at $300,000 would pay $48.77, according to [Arch] Gillies, [chairman of the Board of Selectmen]. (This appears to be for the lowest level of service.)

In 2012, the community formed a Broadband Working Group to dig deeper in to the state of broadband on the island and search for ways to improve it. The community hired a consultant to do an assessment and make recommendations. Traditional large scale providers do not find the community ripe for investment with its small number of households.

After reviewing the recommendations, community leaders decided it was in the community's best interest to deploy a network that would be owned by the public. They then engaged in a Request for Information process and received responses from three vendors. Eventually, they chose to work with GWI, in part because it is a local company. Fairpont and Time Warner Cable also responded, but their proposals did not stipulate that the infrastructure would belong to the town. There were other inferiorities in their proposals.

Community leaders have determined that they will need approximately 50% of the community to subscribe in order to cover the operating costs. They also hope that, with more subscribers, they can reduce the prices below the proposed rates. At this time, they anticipate offering service at $35 per month for 3 Mbps/1 Mbps, $75 per month for 500 Mbps symmetrical, and $125 per month for gigabit service. 

If voters approve the bond issue at the annual town meeting on May 9th, they will be asked to commit to a level of service in order to accurately assess the project's viability. If there is not a 50 percent commitment, the town may not proceed with the bond issue. If the bond is approved and sign-ups suggest a favorable future, construction would begin in the fall.

Mesa's Focus on Dig Once and Fiber Leases Pays Off - Community Broadband Bits Podcast 139

Arizona's city of Mesa is one of the largest communities in the nation to benefit from the city taking role in ensuring conduit and fiber are available throughout the area. This week we talk with Alex Deshuk, the city's Manager of Technology and Innovation that was brought on in 2008.

We talk about how Mesa has, for longer than a decade, ensured that it was putting conduit in the ground and making fiber available to independent providers as needed to ensure they had multiple options around town and especially to select areas where they wanted to encourage development.

Having this fiber available has helped to encourage high tech investment, including the new Apple Global Command Center.

Read the transcript from this episode here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Persson for the music, licensed using Creative Commons. The song is "Blues walk."

Greater Minnesota Partnership Focuses on Non-Metro Need - Community Broadband Bits Podcast 136

Like many states, Minnesota has a major metro area that generally has higher quality Internet access than non-metro communities. The Greater Minnesota Partnership, a coalition of businesses, chambers, nonprofits, and cities from across the state, have made improving Internet access a major priority in their efforts to influence the state legislature.

This week, we talk with Dan Dorman, Executive Director of the Greater Minnesota Partnership. He is also a former Minnesota state Rep and remains a small business owner. We discuss the need to improve access even as major cable lobbyists fight in the capital to preserve the status quo. The Partnership believes state barriers to community networks should be removed.

Dorman offers a unique perspective as a former member of the Minnesota Legislature. He knows what it is like to be lobbied constantly by one side of the issue but rarely hear from the other. Fortunately, the Greater Minnesota Partnership is working to provide that other side as best it can.

We previously discussed the Border-to-Border fund in episode 119.

Read the transcript from this conversation here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below.

This show is 28 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Thanks to Persson for the music, licensed using Creative Commons. The song is "Blues walk."

Los Angeles Times Supports Local Authority

President Obama's recent appearance in Cedar Falls infused adrenaline into the debate about local authority for telecommunications decisions. As a result, some of the media outlets from large cities are now coming out in support of local authority. The Editorial Board of the LA Times published an opinion on January 21st supporting the notion of restoring local authority in states where laws prevent community decision making.

The Times recognizes that rural areas will benefit most from reversing these restrictions, that the restrictions need to be removed for us to compete globally, and that there are numerous municipal networks that are up to the challenge of improving connectivity. The LA Times also recognizes the value of public-private partnerships in New York and in other places where local government has forged productive relationships with the private sector.

Editors at the LA Times boil it down to one tenet:

Regardless, the decision about whether a local agency should get into the broadband business should be left to the people who bear the risk — local officials and the people who elect them.