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Davenport, Iowa, Releases RFP for Feasibility Study

Davenport recently issued an RFP, hoping to hire a vendor to complete a feasibility study. The community wants to learn more about connectivity options that build on its current fiber assets.

According to a May 2014 Government Technology article by Colin Wood, the city has installed fiber throughout the community over the past decade. CIO Rob Henry told Wood:

“For years, residents and businesses have been asking us to do this,” Henry said. “We always knew we were going to get to this point.”

Henry goes on to note that current services from incumbents in Davenport are not sufficient for economic development. The first step will be to connect businesses then follow with fiber to each premise.

Davenport's population is approximately 103,000. During the 70s and 80s, manufacturing was the predominent industry but today tech firms are moving into the area. It is considered part of the Quad Cities region, midway between Chicago and Des Moines from east to west and the Twin Cities and St. Louis from north to south.

According to the article, government facilities began using fiber first, with schools, hospitals, and parks following. The network saves Davenport $400,000 per year because the city serves its own telecommunications needs rather than buying service from a provider.

Wood reported that the city has spoken to CenturyLink and Mediacom; Chris told GovTech:

It’s good that Davenport is trying to cooperate with local Internet service providers (ISP), Mitchell said, but it’s unlikely to produce much substance because, in some cases, ISPs will attempt to starve the municipality for customers. “Every local government at first tries to work with incumbent providers,” said Mitchell, adding that, “my thinking is the city is not going to get a whole lot out of trying to work with them.”

The feasibility study will include several components, including a business case needs analysis, an evaluation of Davenport's current fiber optic capabilities, and recommendations. Bids are due in mid-July; the RFP is available online [PDF].

Call to Action: Tell Your D.C. Officials to Vote NO!

H.R. 4752 from Rep Latta (R-OH) will be brought up in the House, likely as an appropriations rider, some time within the next few days. In the past several months, the municipal network movement has made great strides. If passed, this bill's content can be a significant setback. We encourage you to call the D.C. office of your elected officials and tell them to vote NO on H.R. 4752, NO on any rider based on H.R. 4752's language, and NO on any amendment that restricts FCC authority.

Be very specific when it comes to municipal networks - local governments should be the ones to decide whether a network makes sense. These amendments are designed to strip the power from the FCC that would allow it to ensure local governments can make this decision.

H.R. 4752's language would prevent the FCC from regulating Internet service providers under Title II. There is also some indication that the House will consider an amendment on municipal broadband; constituents need to stop the rider and the amendment from moving forward. 

This bill was introduced months ago. According to OpenSecrets.org, its Republican sponsor has received more than $320,000 in campaign contributions from the communications sector since 2007. 

The Free Press has also spoken out against this bill, which would help destroy network neutrality and this lethal amendment.

Get the word out to your communities ASAP! Call your Rep's D.C. office and urge him or her to vote NO on this bill or on any similar rider and NO on any amendment restricting FCC authority. As you know, if the FCC is limited in this way, its authority to take other meaningful action to support municipal networks will be compromised.

When you call your Representative's D.C. office, ask first to speak to the staffer in charge of telecom. If you live in a community where you have benefitted from a municipal network or in a community that is exploring the option, share your experiences. Let them know that you not want Congress limiting FCC authority in this way.

Santa Fe Ready to Improve Local Internet Choice

The City of Santa Fe is taking first steps to improve the community's Internet choice, quality, and availability. Recently, the City announced that it has chosen a partner for a middle mile investment and will move forward with the $1 million fiber deployment project.

CenturyLink and Comcast serve Santa Fe, home to approximately 70,000 people. Residents and businesses both complain about slow speeds and relatively high costs. Residents pay $50 per month for average speeds of 5 Mbps while nearby Albuquerque pays the same price for 10 Mbps, according to the Santa Fe New Mexican.

CenturyLink owns the sole fiber hut connecting the community with the Internet. The company also owns the line bringing access to the web to downtown, giving it control over data transmittal in the city. A city press release, reprinted at SantaFe.com in May 2013 described the problem:

Every home and most businesses already have two physical routes to the Internet: A telephone line and a television cable...But in spite of this abundance of pathways, there is a crucial missing link in the infrastructure, an enduring legacy of the former telephone monopoly. This missing link spans from the central telephone office to a location about two miles away where several fiber optic cables emerge from the ground after traversing many miles of road, railroad and countryside from remote junctions across the state. Absent this two-mile link, local providers have only one way to connect to the outside world, and must pay a steep toll on the data transmitted over it. 

The City recently announced that it would work with local ISP Cyber Mesa to build an independent line from downtown to CenturyLink's fiber hut. The City hopes the line will introduce much needed competition, encouraging better service and prices.

According to the plan, Cyber Mesa will run the City's fiber service for four years; after that other bidders can apply to manage the network. Three other companies bid on the project, including CenturyLink who told the City "not to waste money on the project." CenturyLink opposes the plan, of course, and Chris spoke with the New Mexican about what to expect from the incumbents:

Mitchell also warned that the city should not expect competition to flourish on its own, saying Internet giants such as Comcast and Century Link “have a lot of power to run competitors out of business.”

Mitchell warned that Comcast and Century Link have a history of opposing public Internet infrastructure projects through legislation, and that the city should expect resistance if it continues building such projects.

“They’re very happy with the market the way it is,” Mitchell said.

Citylink Logo

The project details have raised a few eyebrows from industry experts. While the plan to build another line will provide another path to the Internet, one of the bidders, CityLink Fiber, questions the wisdom of the plan:

[CityLink Owner John] Brown said that in his bid he proposed creating a 7-mile loop that would have accomplished the city’s goals and provided additional coverage and redundancy. The city didn’t bite, saying that he couldn’t complete the project within the funding limits, he said.

Brown said he could, but the city remained unconvinced and instead opted for Cyber Mesa.

He also questioned the need for running cable through Century Link’s central exchange, saying it was unnecessary and expensive.

We have been impressed with John Brown's work and are inclined to believe him. But regardless of the details, local businesses are hungry for better service. A local Web design firm owner, Damien Taggart, notes that large data files can take hours to transmit.

Smaller ISPs are also looking forward to an option beyond CenturyLink. Joel Yelich, president of a local wireless provider told the New Mexican:

“I certainly hope that is successful in some way,” Yelich said. “The more competition, the better.”

Whitewater Weighs Options for Municipal Broadband

Whitewater, Wisconsin, a city of just under 15,000 people that sits midway between Madison and Milwaukee, is considering its options for establishing a municipal broadband utility. As reported by the local Daily Union newspaper, members of the city council, the community development authority, other local bodies, and the public met this week to hear a feasibility presentation and discussion with Anita Gallucci, a Wisconsin attorney specializing in broadband utilities.

Whitewater already has some public fiber optic infrastructure, having gone live with their gigabit-capable Whitewater Unified School District network last fall. The network joins up with a larger fiber backbone on the nearby University of Wisconsin Whitewater campus, and has allowed Whitewater schools to increase their connection speeds by 1,200 percent while holding costs steady. The city is now looking at options for how to expand the opportunity brought by such high speed access to the broader community.

Tuesday’s meeting focused on two topics: the legal landscape for municipal broadband utilities in Wisconsin, and the varying levels of success that other Wisconsin cities have had with their own networks. On the legal front, Gallucci affirmed that “municipalities can get into the broadband business if they choose to do so,” but then went on to outline the hurdles created by Wisconsin law that make the process more challenging. From the Daily Union article:

Gallucci said that first, the city must prepare a formal report or feasibility study. The report must cover a three-year outlook which addresses revenues derived from constructing, owning, or operating the utility including such things as equipment, maintenance, and personnel requirements.

Given the upfront costs associated with building out a fiber optic network, a report focusing on a three-year outlook is unlikely to cast a favorable light on the project. Like any other significant investment in public infrastructure, municipal networks may take more than three years to break even. If we used that benchmark for roads, we wouldn't have many.

Wisconsin cities must also go through a public hearing and vetting process before voting on final authorization of a municipal utility. There is a shorter route on the books in Wisconsin, but one that effectively gives incumbents a veto:

Gallucci said that cities do not have to follow these steps in very specific circumstances, such as serving an area of the city that does not otherwise have service access; but cities must notify private companies (for example, AT&T, Verizon, or Charter Communications) of that project. However, if those companies say they currently, or plan to in the future, serve those areas, then the steps need to be followed.

It doesn’t take much imagination to guess what would happen if a city like Whitewater were to approach AT&T or Verizon and ask if they have any “plans to expand in the future” that might preempt the building out of a public network.

Wisconsin law is more obliging towards open access networks, according to Gallucci:

She said the steps could be avoided if the city acts as “a wholesaler of broadband services.” By this, she said, the intention would be to build the infrastructure and private companies would use those fibers to provide service.

“That would require the city itself to not provide any service to the end-user,” she explained.

While the legal environment in Wisconsin is generally unfavorable towards municipal broadband utilities, the meeting also highlighted some recent success stories. Reedsburg, which we wrote about here, was touted as the only Wisconsin city offering a “triple play” bundle through its broadband utility. Also mentioned was Sun Prairie, as fellow city seriously considering a FTTH network.

The next step will be for the Whitewater Community Development Agency to bring the issue before the City Council, which the city manager expected to happen “in the very near future.”  

Early Lessons from Longmont - Community Broadband Bits Podcast 106

Longmont is about to break ground on the citywide FTTH gigabit network but it is already offering services to local businesses and a few neighborhoods that started as pilot projects. Vince Jordan, previously a guest two years ago, is back to update us on their progress.

Until recently, Vince was the Telecom Manager for Longmont Power and Communications in Colorado. He has decided to return to his entrepreneurial roots now that the utility is moving forward with the citywide project. But he has such a great voice and presence that we wanted to bring him back to share some stories.

We talk about Longmont's progress and how they dealt with a miscalculation in costs that forced them to slightly modify prices for local businesses shortly after launching the service. And finally, we discuss the $50/month gigabit service and how Longmont has been able to drive the price so low.

You can read our full coverage of Longmont from this tag.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

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 Waylon Thornton for the music, licensed using Creative Commons. The song is "Bronco Romp."

Gainesville Plans Gigabit Ring for City and Businesses in Texas Town

The Gainesville City Council recently approved a plan to deploy a fiber ring throughout the Texas town of 16,000. The network will connect municipal facilities and offer gigabit connectivity to local businesses. Gainesville is located seven miles from the Oklahoma border in Cooke County.

According to City Manager Barry Sullivan, the planned route will provide access to 95% of local businesses. Sullivan told KXII:

"That is key to economic development now. People used to look at streets, water and sewer. Now the first thing a lot of companies look at is the communication infrastructure because that is more limited than streets, water and sewer in most communities," said Sullivan.

The project will cost $525,000; the City will pay $425,000 and the Economic Development Board will contribute the remaining $100,000.

Watch the news video or read the story for more information.

Another Colorado Community May Reclaim Local Telecommunications Authority

Boulder's City Council is considering November ballot question to restore local authority for municipal telecommunications services. The measure, if passed, will create an exemption to the 2005 Colorado law allowing Boulder to better use its existing fiber optic infrastructure.

Apparently, the Boulder community has a self-reliant streak. This is not the first time the Institute for Local Self-Reliance has reported on the community of 97,000. John Farrell, Director of the Democratic Energy initiative, has followed the grassroots campaign to establish a city-owned electric utility in Boulder.

The Daily Camera reports that City Council staff, in a memo to Members, recommend the community seek authority to make use of existing assets. The City owns an extensive network of conduit that it began developing in the 1990s. Boulder has aggressively expanded the network, leasing it to private partners and using the space for a fiber I-Net to connect over 50 municipal facilities.

The Boulder Research and Administration Network (BRAN) serves the City, the University of Colorado, the U.S. Department of Commerce, and the University Corporation for Atmospheric Research. Each of the four entities shared equally in funding the $1.2 million eleven mile network. Boulder is an administering partner for BRAN and hopes to capitalize on that relationship even further.

Approximately 10% of Boulder's residents have home-based businesses, reports City Council staff. The community ranks high in the concentration of software engineers, innovators, and scientists. Businesses with less than 100 employees comprise 97% of firms in Boulder. Local surveys indicate the business community is hungry for better services. From the Daily Camera article:

[Director of Information Technology Don] Ingle said the city has no concrete plans in place to pursue partners, but he believes there will be a lot of interest if Boulder can get the authority.

"The broadband capacity currently offered by the private sector is not large enough," he said. "Given all the business innovation going on with the tech center, that level of connectivity would be a huge asset."

In the past, City leaders hoped to catch Google's attention but the election successes in Longmont, Centennial, and Montrose have inspired Boulder to take action rather than wait indefinitely. Boulder policy advisor Carl Castillo, told the Daily Camera city leaders believe the 2005 law poisoned the city's chances of becoming a Google Fiber community.

"The way we look at it is that our taxpayers have paid for these assets, and we're not able to leverage these assets to offer higher-speed Internet at lower cost," Castillo said. "Right now, we can't really engage in these discussions. We're really going to be behind the ball if we don't have this authority."

Erwin, Tennessee Bringing Fiber to Businesses, Residents

Erwin, population 6,000, is planning a pilot project to bring fiber to downtown homes and businesses, reports local media. The project may be lit by November, serving approximately 1,200 premises.

According to the Johnson City Press, Erwin Utilities has already developed a plan to offer Internet and phone service:

The network would offer customers high-speed broadband Internet and telephone services. [Erwin Utilities General Manager Lee] Brown said the project would offer initial Internet of 100 Mbps with the future potential of providing up to 1 Gbps. Brown said a service such as the one Erwin Utilities intends to offer is typically only available in large metropolitan areas.

“Our beginning package is basically the equivalent of what the fastest speed available is currently,” he said.

Erwin Utilities will use the infrastructure for electric system demand response, meter reading, outage reporting, improved communications and operations of electric, wastewater and water equipment, and future load management. If customers are happy with the service in the pilot project area, Erwin Utilities hopes to deploy the technology throughout its entire service area.

Brown told the Press that the municipal utility began investigating the possibility of municipal broadband about 15 years ago, but until now the community could not afford the investment. Costs have gone down bringing the project to approximately $925,000.

The Erwin Utilities Board approved the plan but the Tennessee Comptroller needs to review it. Next the community will hold a public hearing then on to final approval by the Board of Mayor and Alderman.

Chanute City Commission Approves FTTH Plan

Chanute City Commission decided on June 9th to take the next step to bring ftth to the community; Commissioners voted unanimously to pursue and finalize funding to deploy a municipal network.

The City's current fiber network provides connectivity to schools, hospitals, electric utility and municipal facilities, the local college, and several businesses. Chanute has worked since 1984 to incrementally grow its network with no borrowing or bonding. Plans to expand the publicly owned infrastructure to every property on the electric grid began to take shape last year.

At a work session in May, Director of Utilities Larry Gates presented several possible scenarios, associated costs, and a variety of payback periods. The favored scenario includes Internet only from the City, with video and voice to be offered by a third party via the network. Residential symmetrical gigabit service will range from $40 - $50 depending on whether or not the subscriber lives in the city limits. Commercial service will be $75 per month. Advanced metering infrastructure will also be an integral part of the network.

The Commission authorized the pursuit of up to $14 million to get the project rolling.

Wisconsin Local Governments Collaborate for Schools, City, and County

Sheboygan County, the City of Sheboygan, and the Sheboygan Area School District (SASD) plan to collaborate to deploy a fiber network. According to an article in the Sheboygan Press, all three entities seek cost savings and higher capacity connections.

Approximately, 49,000 people live in the City of Sheboygan; there are 10,000 students attending SASD. Over 115,000 people live in the County located on the western shore of Lake Michigan.

The County, the City, and SASD will split the cost of constructing the ring, approximately $1.4 million. Each entity will then pay for laterals to connect its facilities to the ring. The total to construct the ring and connect each entities' facilities will be approximately $3.58 million. 

To build its laterals, SASD will pay $865,000. The District will save approximately $220,000 per year on connectivity fees, paying back the total investment ($1.4 million + $865,000) in about 10 years even without putting any value on the considerable benefit of much high capacity connections. When factoring in the reality that their connectivity fees would undoubtedly increase signficantly under the status quo arrangement and the much higher capacity connections, the payback period will be even shorter than 10 years.

The district is already providing a device for each student and its current connection is struggling to meet the demand. The state has a program, TEACH Wisconsin, which subsidizes the high cost of leasing connections from existing providers but given the high rates often charged by a company like AT&T, it can only go so far.

Wayne Eschen, information services coordinator, said the district pays about $220,000 per year for its online capacity...

“(TEACH Wisconsin) is limited,” Eschen said. “If you go beyond that, you pay full retail for it. We’ve exceeded the base that’s available to us and we’re now paying retail as well. As the need continues to increase, the retail cost goes up substantially.”

Meanwhile, the County now pays approximately $29,000 per year for just 25 Mbps Internet access. They estimate they will pay $9,000 per year for gigabit connectivity via the new infrastructure. We do not know how much the County currently pays for connectivity beyond Internet access but it will pay approximately $455,000 in one time fees to connect laterals to its 13 - 14 facilities.

The City has plans for its faster connections:

“What we want to do is look at different ways we can get them connected with high speed and yet have it cost-manageable,” [IT Director David] Augustin said. “If we go with those avenues (the current system), we’ll still never get the speed capacity that we would with fiber and yet we’d still have to pay the monthly charge.”

One thing the city is especially interested in is conducting some fire department training by video conference, which would require much faster speeds than they now have.

The City expects to pay approximately $664,000 to establish connections to a future network.

Apparently, a road project has inspired the partners to move forward this summer. They have determined that burying conduit as part of that project will reduce the costs by $400,000. They hope to have the network completed and lit by 2016.