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Longmont City Council Approves Fiber Network
Longmont, Colorado, will move ahead with plans to offer fiber connectivity to the entire community. After presenting this business plan to the City Council, members voted unanimously on May 14th to support the measure. Scott Rochat from the Times-Call attended the meeting.
Residents stepped forward to express their opinions and all but one urged the council to "get it done."
From the Rochat article:
The plan projects a four-tier price structure. For residential rates, that's proposed to range from $39.95 a month for 10 megabit-per-second upload and download, to $99.95 for 100 mbps.
The study estimates that 35 percent of homes would choose to get their Internet service from the city, still leaving plenty of the field for the existing providers.
"Competition is good," Councilman Alex Sammoury said. "Just because we're a government entity doesn't mean the free market doesn't apply to us. If someone can do it better, more power to them."
The plan proposes to have the city provide Internet directly and work with a private partner for phone service.
Video service would not be provided, Roiniotis and the Uptown consultants said, because Internet video has eroded the market for traditional television.
Vince Jordan, LPC Manager, began the presentation and stressed economic development, education, and lifestyle.
Representatives from Uptown Services reviewed recommendations and the business plan. They answered about 3 hours of questions from council members, including skeptical members who want to avoid becoming the next Provo, Utah. Neil Shaw and Dave Stockton from Uptown Services provided some perspective between the two communities. They pointed out the large number of successful networks in states across the country.
Longmont had been prepared to incrementally expand the network using the cash on hand from the many years of dark fiber leasing. Such an expansion could be done without borrowing but would take a long time (more than ten years, likely) to get to everyone. This is the approach Danville, Virginia, has been using.
Businesses Lining Up for Service in Longmont, FTTH Build-Out Studied
In January, Longmont Power and Communications (LPC) announced they would begin connecting businesses located within 500 feet of the existing network. As we reported, local businesses were chomping at the bit to get hooked up and enjoy the high-speed next generation network. Even without efforts at marketing or advertising, more businesses have added themselves to the queue. LPC will present the formal business plan for expanding the network to the City Council on May 14th. Tony Kindelspire recently reported on the race to get on LPC's network in the Longmont Times-Call:
"We are bringing to council a business plan to build out all of Longmont," [Vince] Jordan, [Broadband Services Manager], said. "It's the whole enchilada."
The fact that there has so far been only limited rollout is due to economics. Currently, the installations are being paid for from a reserve fund that Longmont Power has built up over the years leasing portions of its fiber-optic loop to entities such as Longmont United Hospital and a third-party provider that services the school district. Those leases bring in about $250,000 annually, Jordan said.
For 2013, the Longmont City Council authorized LPC to use $375,000 of that reserve fund to begin connecting businesses and residents to the loop.
This model works, but does not connect everyone fast enough for their liking:
To expedite the build-out, extra up-front dollars will have to be allocated, but where those dollars will come from is yet to be determined, Jordan said, adding that ultimately, the decision will lie with City Council.
Andrew Cohill Explains Common Mistakes in Community Networks - Community Broadband Bits #45
Carroll County Public Network Changes Education, Saves School Funds
Carroll County is a bedroom community, with a variety of economies all around it. Washington, D.C., Camp David, Baltimore, Harrisburg, Fort Detrick, and the Aberdeen Proving Ground are a few of the places surrounding Carroll County. There is very little major transportation infrastructure and no major waterways. Many of the county's 167,000 people commute daily to jobs outside of the bullseye.
Gary Davis, Chief Information Officer at the Carroll County Public Schools (CCPS) and Chairman of the Carroll County Public Network (CCPN) started at the school district in 2002 and immediately recognized that the telecommunications arrangement was insufficient.
Schools and other facilities were connected to the hub via 1.5 Mbps T1 connections and the whole wide-area-network was connected to the Internet via an expensive Frame Relay DS3 connection. The total cost ran as high as $600,000 per year.
When CCPS approached Verizon about increasing bandwidth, Verizon’s proposal was extremely cost-prohibitive. Verizon wanted a long-term commitment that resulted in more than 10 times their current costs. Basically, Verizon would own the network but capital costs would be funded by CCPS and maintained with ridiculously high recurring fees. The return on investment for Verizon was just too low owing the community demographics.
At that time, Davis met Robert Wack of the Westminster City Council and the two compared notes. Davis' vision for Carroll County Public Schools and Wack's ideas for Westminster and Carroll County were very similar. Both involved a high-speed network and Westminster is currently involved in its own municipal network project (to be covered in an upcoming post).
In Florida, Bartow Looks to Build Community Owned Fiber Network
Bartow, Florida, located in Polk County near the center of the state, is considering a FTTH network for the community's 17,000 residents. At a recent City Commission meeting, members decided to put city administrators on task and develop a plan to eventually offer triple play services to residents.
Suzie Schottelkotte reported on the initiative for The Ledger.com, quoting Mayor Leo Longworth, who commented, "I think the residents are ready for it and it's something that's needed."
The City has an existing 100 mile fiber network and offers connections to some local businesses. Government and schools also use the network. At the meeting, city commissioners heard from a fiber optic consulting firm that estimated an expansion to households at $3.3 million for capital costs and $2.5 million to run the network during the startup years until the network breaks even.
Comcast now serves the community through its cable television franchise agreement and is a source of constituent discontent:
"Without discrediting anybody, we just don't have the quality," [Mayor Longworth] said.
The Polk County Democrat also covered the discussion. Steve Steiner referred to the Mayor's comments about the private sector:
[Mayor] Long reminded commissioners that they as well as city staffers and the general public present, are familiar with the problems experienced with the current broadband provider. Long also expressed the doubt another provider would be willing to come to Bartow to install and upgrade the current system in place. The number of businesses and the size of the population does not provide any true incentive.
The Florida Cable Telecommunications Association (lobbyists for the cable industry) responded to the initiative in a predictable fashion. From the Ledger article:
Princeton, Massachusetts, Considering Building Own Fiber Network
We recently reached out to Princeton, Massachusetts, after reading several local news articles about the city's ambition to improve broadband in the community. Phyllis Booth of the Landmark has been covering the story. Community leaders recently mailed survey cards to every residence in town and put the survey online to provide ample opportunity for feedback.
With survey results complied, the answer from respondents was an overwhelming, "Yes! We want better Internet!" The Princeton Broadband Committee has since made the results available in a series of visuals that express the community's experiences with speed, customer satisfaction, desirable applications, and other respondent concerns. Detailed survey results are available for review [PDF].
The results come as no surprise to Stan Moss, Board of Selectmen Member who is also on the Broadband Committee. "Everybody has tried everything," says Stan when he describes the survey outcome. The community of 3,300 has access to DSL in about 49% of households and other choices are satellite, dial-up, and wireless. According to Moss, Princeton DSL customers averaged a D+. From the Landmark article:
“Once we invest in the fiber it’s pretty good. It’s not costly to upgrade in the future, it’s reliable once it’s in place,” said [Broadband Committee Member John] Kowaleski. “If the town doesn’t do this, no one will,” he added. The town has contacted Verizon and Charter and “we’re not even on their plan,’’ said Kowaleski. “Princeton has insurmountable challenges. It isn’t profitable for Verizon or any other company to provide the infrastructure to give us the service,” said Kowaleski.
Moss says he receives calls on a regular basis from residents who want to know when the city is going to provide FTTH. Most of those calls come from people who work from home or have school age children.
Cedar Falls Utility Gets High Bond Rating from Moody's
Moody's rating report noted the utility's large market share, competitive pricing and product offerings, expansive fiber optic network, long-term financial planning and conservative budgeting practices as reasons for the continued strong rating of the utility's revenue debt.CFU also compiles the community savings resulting from each of its services by comparing its rates to nearby communities (see most recent comparison [pdf]). The benefits total $7.7 million each year, almost $500 per family. This includes a $200 difference in cable TV bills and a $130 difference in Internet service.
In Georgia, Monroe Muni Network Created Jobs, Lowered Bills
As we monitored Georgia's HB 282, a bill to limit the capacity of local governments to invest in Internet networks that spur economic development, we learned of many existing networks that have helped communities to thrive.
Brian Thompson, Director of Electric and Telecommunications in Monroe took some time to tell us a little about their city network. Located in the north central section of Georgia, with a population of 13,000, the network now offers triple play services to residents and businesses. Its network started in the 1970s with a municipal cable tv network. Today, the network is a hybrid with fiber having been added as an expansion to its cable network.
Monroe's investment in its fiber began as a way to improve connections for education. The Walton County School District could not find a private provider willing to collaborate on an affordable network between school facilities. The city took on the challenge and built a point-to-point network which the School District paid for in 10 years. In the mean time, the city expanded its network in other areas. Now, the Walton County Schools have gig service between facilities and to the Internet. The District pays only $500 per month for a service that would cost five times more from a private provider.
Thompson also confirmed what we hear from other communities with publicly owned networks - prices for business and residential services are very competitive and service is superior. He notes that customers often express appreciation for local representatives, rather than dealing with a huge bureaucracy like those at Verizon or AT&T. New connections can be created in a matter of hours or days instead of weeks.
Blair Levin Discusses Gig.U and More for Community Broadband Bits Episode #37
Carl Junction, Missouri, Plans Community Owned Fiber Network
Carl Junction, Missouri, is moving ahead with plans to build a fiber network.
Steve Lawver, City Administrator, tells us that funding for the $5.2 - $5.6 million project will most likely come through a lease program from the Missouri Public Utility Alliance (MPUA). Lawver tells us that funding will involve private placement non-taxable bonds, available to members of MPUA.
The network, which will be entirely fiber to the premises, will serve local government, schools, businesses, and residents. In an email, Lawver notes that:
We, as many rural communities, have found that the incumbent providers that are serving us have no plans for the improvement or expansion of their system here in our city. With little else to do we decided to build it ourselves and find a service provider that is responsive and customer oriented.
The City began pursuing the network some time ago. Last September, TSI Global presented information at a City Council meeting after completing 75% of a feasibility study. In a Joplin Globe article, Andra Bryan Stefanoni described data they gathered on available service in the Carl Junction area:
Mediacom users can download data at 20 megabits per second and upload at 2 megabits per second for $30 a month. AT&T users can download at 6 megabits per second and upload at 1 megabit per second for $20 a month. Zing fixed wireless users can download 3 megabits per second and upload at 1.5 megabits per second for $99 a month.
At that same September meeting, Stefanoni noted that residents commented on the project. While not all of the comments favored pursuing broadband infrastructure investment, most of the speakers at that meeting commented on poor choices: