Fast, affordable Internet access for all.
Fiber to the Home
Fiber to the Home
Jackson Energy Authority in Tennessee, long the largest community fiber network in the US, is investing in greater smart-grid capabilities. If you aren't already familiar with this network, an article in Electric Light & Power offers some history:
After receiving local government support and revenue bond issue funding, JEA went ahead with the $54 million project. Now its FTTP network boasts 16,500 cable, 10,843 Internet and 7,000 telephone subscribers. JEA is preparing for the next phase of its FTTP deployment with a smart grid initiative expected to begin in 2010.
The article also makes an important point that many find confusing in understanding the economics of these community fiber networks:
In the early years, JEA focused on subscriber growth as its key performance metric, rather than average revenue per user (ARPU). The capital-intensive cost of acquiring and hooking up new customers, however, can create significant cash flow problems for a network operator, especially when growth substantially exceeds the business plan. JEA had to secure more financing to support its incremental growth. The utility also adjusted its business model to focus instead on ARPU and increasing the number of existing subscribers using two or three services. JEA employed special promotions and service packages that took advantage of the huge bandwidth capabilities of its fiber network to build customer loyalty and overcome the customer churn typical of the industry. Today, JEA’s network has passed more than 30,000 homes, more than 16,000 of which are subscribers.
This is a good example of a community encountering a problem and overcoming it. The article also offers other lessons learned along the way. Moving forward, JEA has decided to work with Tantalus to add smart-grid capabilities to the fiber network.
"We can never overestimate the amount of bandwidth that will be needed in the future," said jon Kinsey, a Chattanooga developer and former mayor who is working with local entrepreneurs to study ways to capitalize on the faster broadband service.
I just spoke with Danna MacKenzie of Cook County and Gary Fields of National Public Broadband (working with Lake County) to find out just how excited they are about yesterday's announcement of broadband stimulus awards. Both Lake and County (separate projects) have been funded to build fiber-to-the-home networks to everyone on the power grid in the region. They are pretty excited. In a few years, these North Shore Communities will likely have better broadband options than the metro region of Minneapolis and Saint Paul -- a far cry from the beginning of this year when a single fiber cut stranded the whole north shore. Bob Kelleher at Minnesota Public Radio covered the awards:
Combined, they will connect 37,000 residents, 1,000 businesses and 98 institutions such as hospitals and schools.
Cook County actually has a double whammy - they already stood to benefit from the North East Service Cooperative, which is building high capacity fiber-optic lines through the North Shore to offer middle-mile backhaul and connect local government facilities and schools. As of yesterday, they will also get a fiber-to-the-home network from the Arrowhead Electric Cooperative. Cook, currently served in part by Qwest, has little access to true broadband -- some 37% have access to anemic DSL connections and the rest are stuck with dial-up. Details of the award from Kelleher at MPR:
Joe Buttweiler, who directs membership services with the Lutsen-based Arrowhead Electric Cooperative, said 70 percent of the federal award is a grant and the remainder a loan. He said the cooperative will add another $600,000 for capital.
Back in April, Blandin's Broadband blog published the short summary of the Arrowhead project:
Only Hong Kong and a few other cities in the world offer such lightning-fast service, and analysts say Chattanooga will be the first in the United States to do so. “This makes Chattanooga — a midsized city in the South — one of the leading cities in the world in its digital capabilities,” said Ron Littlefield, the city’s mayor.Ars Technica offers additional perspective (as usual):
The city hopes this will give it a competitive advantage; on the new website promoting the service, the city's Electric Power Board pitches its country-leading broadband as "a test bed for next generation technology," as "the ultimate tool for entrepreneurs," and a place where "bandwidth is no problem." The consistent theme: you should move to Chattanooga.(It also reminds us that Chattanooga is far beyond the FCC's timid goals in the National Broadband Plan.) Giga Om has lost the lust for his still-respectable 100Mbps.
EPB says that their 100 Mbps service is now costing $140 a month and the 1 Gbps service will cost $350 a month.Though Chattanooga has beat Google to the punch, this does little to change Google's goal of even cheaper 1Gbps with open access - the race is not simply to 1Gbps, it is to the future! Those who are putting Google down in some way are grasping for something to say about a stunningly unique offering.
It’s a great day for Opelika. It’s a great day for our future. It’s a terrible day for Charter,”One gets the sense that the Mayor took some umbrage at Charter's tactics to prevent the community from building its own network. The day before the election, Stop the Cap! ran a fantastic article about Charter's manufactured opposition to the community network. Phillip Dampier investigated the background and claims of prominent opponents, including Jack Mazzola, who might as well have written some of the articles in the local paper about the Smart-Grid project for how often he was quoted by the reporter (who often failed to offer a countering view from anyone in support of the network).
Jack Mazzola claims to be a member of Concerned Citizens of Opelika and has become a de facto spokesman in the local press. He claims he is “30 years old and have been a resident of Opelika for almost two years.” During that time, he evidently forgot to update his active Facebook page, which lists his current city of residence as Atlanta, Georgia. Suspicious readers of the local newspaper did some research of their own and claim Mr. Mazzola has no history of real estate or motor vehicle taxes paid to Lee County, which includes Opelika.Any community considering a referendum on this issue should read this Stop the Cap! post and learn from it because massive cable companies like Charter all use the same tactics in community after community.
The demand for this "Extreme" tier speed, however, is "extremely low," says spokesman Steve Kipp. Later this summer, the ISP plans to offer 105 Mbps download and 12 Mbps upload speeds.I suspect people mostly aren't interested in the extreme price for supposed extreme speeds. A number of communities that have built their own networks offer faster (and symmetrical) connections for considerably less. However, even there most people opt for lower tiers rather than the fastest speeds. What the article utterly misses is that faster speeds are only one piece of the reason communities build these networks. Yes, next-generation networks offer faster speeds now and have much more capacity for future expansion than cable networks (and DSL is so far behind as to not be comparable). But public ownership is about more than faster speeds. It spurs competition and lowers prices for everyone. It offers accountability, ensuring the network meets the needs of the community now and in the future. It allows public agencies to get faster connections at lower prices (though Seattle already has this through its previous investments in fiber-optics). As Seattle owns City Light, it would have greater abilities to invest in smart-grid and metering applications to make the city more energy efficient. When the community owns the network, it can ensure everyone has access to fast connections (particularly children in low-income neighborhoods where absentee companies may be reluctant to invest). But to get back to the argument about network speeds, there is an argument for FTTH and faster speeds even if people do not demand them right now. Until people have access to robust connections, applications will not be created to take advantage of them.