This is the transcript for episode 259 of the Community Broadband Bits Podcast. Christopher Mitchell discusses Ammon, Idaho, with Ammon Technology Director Bruce Patterson and Strategic Networks Group's Michael Curri. Listen to this episode here. 

Christopher Mitchell: As they understand the model, and that's the key. As they understand the model, they start to understand how to leverage the infrastructure in a way that works for them and their business model.

Lisa Gonzalez: This is episode 259 of the Community Broadband Bits Podcast from the Institute for Local Self-Reliance, I'm Lisa Gonzales. We've been following Ammon, Idaho for some time now, having written numerous stories and producing a video about the Ammon Model. The community is continuing to grow their open access network and also reap the benefits of the public investment. This week, Christopher talks with Bruce Patterson from Ammon and Michael Curri from Strategic Networks Group to offer more details about Ammon's network. In addition to sharing details about community savings and benefits to both residents and businesses, we learn more about the Ammon Model and how it works for subscribers. Before we get started, we want to remind you that this commercial free podcast isn't free to produce. Take a minute to contribute at ilsr.org. If you're already a contributor, thanks. Now, here's Christopher, Bruce, and Michael with more information on the Ammon Model.

Christopher Mitchell: Welcome to another addition of the Community Broadband Bits Podcast. I'm Chris Mitchell, and I'm back with two well known guests to long time listeners of our show. We're going to start with Bruce Patterson, the technology director for the city of Ammon in Idaho. Welcome back.

Bruce Patterson: Thank you, Chris. Happy to be here.

Christopher Mitchell: And we also have Michael Curri, the president of the Strategic Networks Group with just a lot of analysis of various broadband networks. Welcome back.

Michael Curri: Hi, Chris. Thanks. Great to be here.

This is the transcript for episode 258 of the Community Broadband Bits Podcast. Researchers from the Roosevelt Institute join our host Christopher Mitchell to discuss antitrust policy and Internet access. Listen to this episode here.

Marshall Steinbaum: This is us choosing a set of policies that is the worst of both worlds, that is both deregulatory and anti-competitive. Instead you can do both.

Lisa Gonzalez: This is episode 258 of the Community Broadband Bits Podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. This week Christopher visits with two other policy folk from the Roosevelt Institute, Marshall Steinbaum and Rakeen Mabud. Earlier this year the Roosevelt Institute released a report that examines how antitrust enforcement has changed and how those changes have impacted the telecommunications industry. Christopher, Marshall and Rakeen consider how that approach has affected people who may or may not subscribe to Internet access services. You can download the report and learn more about the organization at rooseveltinstitute.org. Now here are Christopher with Marshall Steinbaum and Rakeen Mabud.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits Podcast. I'm Chris Mitchell and today I'm speaking with two folks from the Roosevelt Institute. Marshall Steinbaum, the senior economist and fellow at the Roosevelt Institute. Welcome to the show.

Marshall Steinbaum: Thank you. It's great to be here.

Christopher Mitchell: We also have Rakeen Mabud, the program director at Roosevelt Institute. Welcome to the show.

Rakeen Mabud: Thanks, nice to be here.

Ammon’s fiber optic utility is opening up competition for residents and businesses in the Idaho community of about 15,000 people. Their software defined network (SDN) allows users on the network to increase efficiencies and explore all sorts of creative visions that require high-quality connectivity.

Innovation Just Keeps On Keepin' On

Now, Ammon is partnering with one of the providers on its infrastructure to launch the Ammon Tech Hub & Research Infrastructure Virtual Ecosystem (THRIVE). The project is available at no cost to researchers and developers and supports: 

1. Research requiring cloud functionality, high bandwidth, low latency network connectivity and a ‘living lab.’ 

2. Developers working on next generation networking services, products or Internet of Things (IoT) hardware in need of cloud functionality, high bandwidth, low latency network connectivity and a community of willing Beta testers. 

THRIVE is designed to allow Ammon premises that are connected to the Fiber-to-the-Home (FTTH) network participate in projects so locals can contribute to research and development. In its press release, the city described research on aging and “smart” smoke detectors in its press release. The project will allow researchers and developer from all over the world to access Ammon’s network for collaborative projects.

Read the press release here.

For more on Ammon’s ground-breaking approach, check out the video we produced with Next Century Cities:

For the second week in row, our staff has felt compelled to address a misleading report about municipal networks. In order to correct the errors and incorrect assumptions in yet another anti-muni publication, we’ve worked with Next Century Cities to publish Correcting Community Fiber Fallacies: Yoo Discredits U Penn, Not Municipal Networks.

Skewed Data = Skewed Results

Professor Christopher S. Yoo and Timothy Pfenninger from the Center for Technology, Innovation and Competition (CTIC) at the University of Pennsylvania Law School recently released "Municipal Fiber in the United States: An Empirical Assessment of Financial Performance." The report attempts to analyze the financial future of several citywide Fiber-to-the-Home (FTTH) municipal networks in the U.S. by applying a Net Present Value (NPV) calculation approach. They applied their method to some well-known networks, including Chattanooga's EPB Fiber Optics; Greenlight in Wilson, North Carolina; and Lafayette, Louisiana's LUS Fiber. Unfortunately, their initial data was flawed and incomplete, which yielded a report fraught with credibility issues.

So Many Problems 

In addition to compromising data validity, the authors of the study didn’t consider the wider context of municipal networks, which goes beyond the purpose of NPV, which is determining the promise of a financial investment.

Some of the more expansive problems with this report (from our Executive Summary):

S&P Global Market Intelligence - May 26, 2017

Hard Data on Municipal Broadband Networks

Written by Sarah Barry James

There is a dearth of good data around municipal broadband networks, and the data that is available raises some tough questions.

A new study from University of Pennsylvania Law School Professor Christopher Yoo and co-author Timothy Pfenninger, a law student, identified 88 municipal fiber projects across the country, 20 of which report the financial results of their broadband operations separately from the results of their electric power operations. Municipal broadband networks are owned and operated by localities, often in connection with the local utility.

...

Yet Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, argued that Yoo's study did not present an entirely accurate or up-to-date picture of U.S. municipal networks.

"When I looked at the 20 communities that he studied — and his methodology for picking those is totally reasonable and he did not cherry pick them — I was not surprised at his results because many of those networks are either in very small communities … and the others were often in the early years of a buildout during a period of deep recession," Mitchell said.

As an example, Mitchell pointed to Electric Power Board's municipal broadband network in Chattanooga, Tenn. — one of the five networks Yoo identified as having positive cash flow but at such a low level that it would take more than 100 years to recover project costs.

...

In fact, without the revenue generated by the fiber-optics business, EPB estimated it would have had to raise electric rates by 7% this year.

According to Mitchell, Yoo's study captured the Chattanooga network when it was still "small and growing," but misses "what's going to happen for the rest of the life of the network, which I think is the more important part."

...

Telecompetitor - May 25, 2017

Municipal broadband networks do not have a strong financial track record, according to an analysis conducted by the University of Pennsylvania’s Center for Technology, Innovation and Competition. The municipal broadband financial analysis, which looked at 20 municipal fiber projects, found that only nine were cash-flow positive and that of those, seven would need more than 60 years to break even.

...

An Opposing View

Municipal network advocate Christopher Mitchell, director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, pointed to several flaws in the Penn Law municipal broadband financial analysis.

He noted, for example that a substantial portion of the 20 networks studied were “early in the process and very small.” He also argued that the 2010-2014 study period may have biased the results, as that period included a recession and subscribership for some of the networks has increased substantially since 2014. He noted, for example, that EPB’s broadband network in Chattanooga had about 50,000 to 55,000 subscribers in 2014 but has now hit the 90,000 mark.

The Penn Law authors’ approach was “not the proper way to measure these networks,” said Mitchell in a phone call with Telecompetitor. The analysis “doesn’t take into account jobs created or the impact on the municipal budget,” he said.

He argued, for example, that a municipality that previously paid $1 million annually for connectivity might instead pay itself $500,000 for connectivity on the municipal network.

...

Read the full story here.