Erwin Fiber is growing in stages and now that the utility in Erwin, Tennessee, has completed phase three of its Fiber-to-the-Home (FTTH) deployment, about half of its electricity customers have access to high-quality Internet access. That’s not all - phase four this spring will bring gigabit connectivity to more rural customers in two nearby mountain communities.

Reaching Out In Steps

All told, Erwin Fiber more than tripled its service area in 2016. A December grant from the Appalachian Regional Commission (ARC) will allow the utility to complete the spring build out, which will serve an additional 680 homes and 30 businesses. The Temple Hill and Bumpass Cove areas located in the mountains outside of downtown Erwin will have access to Erwin Fiber's symmetrical Internet access. Due to the remote character of these neighborhoods, people here had little prospect of obtaining high-quality Internet access from other providers. The 35-mile expansion will cost approximately $400,000.

November’s expansion added 2,200 homes and businesses, while a similar effort last March included 1,300 homes and businesses. Both expansions came after the community successfully experimented with a 2015 pilot project in which the city’s electric utility connected an initial 1,200 customers. The utility needed the infrastructure for the electric system other utilities; it was the right to to invest in the equipment for high-speed connectivity and phone service 

Not An Impluse

The municipality of about 6,000 people had considered the investment some 15 years prior but couldn’t afford the investment until recent years when the cost of deployment decreased. In January, Christopher interviewed Lee Brown and John Williams from Erwin Utilities who discussed the community’s project and explained how the fiber infrastructure is benefitting all the utility customers, even those who don’t subscribe to FTTH services.

About a year ago, Internet service provider Countrywide Broadband (CWB) and equity firm Seaport Capital announced that they would collectively acquire the assets of Illinois based ISP, iTV-3. The partners would form the subsidiary Internet service provider i3 to take over operations that belonged to iTV-3. Not an unusual course of events when one hears about large companies gobbling up smaller ventures on a regular basis. This situation was different because iTV-3 had been working with the communities of Champaign and Urbana to bring high-quality connectivity to residents and businesses via its publicly owned fiber. Just yesterday, CWB announced that the deal has been completed.

Partners 1 and 2

When the UC2B nonprofit organization chose iTV-3, the partnership was lauded as one that held local concerns a top priority. iTV-3 is an Illinois based company and their interest in participating as a community member, rather than just a distant ISP, made them a desirable choice.

An important component of the partnership was iTV-3’s commitment to invest by expanding the existing network and they did build out in some areas. Expansion did not happen quickly, however, and elected officials hope that i3 can accelerate private investment so more neighborhoods can access the Fiber-to-the-Home (FTTH) network. From the Countrywide press release:

The community of Rock Falls, Illinois, is well on its way to developing a gigabit municipal network to offer better connectivity to residents, businesses, and public facilities. Last week, the City Council adopted an ordinance that allows the city to issue general obligation bonds to fund citywide fiber-optic Internet infrastructure.

Following Demand

The city’s plan will expand first in business corridors and then use the fiberhood approach in residential areas, building only after a certain percentage of households preregister. The plan divides the city into 14 fiberhoods with each area’s build out cost estimated to be approximately $250,000. Residential fiberhoods will require 45 percent participation prior to construction. Consultants estimate citywide buildout costs will be $13 million; the City Council authorized bonding for that amount. The first bond issue will be $4.1 million likely to happen in early May if approval proceeds as planned.

The City Council authorized the first phase of the project to begin - network design and project administration - which will cost approximately $207,000. The process to issue GO bonds will start in March and city leaders hope to have the backbone completed by the end of June.

Most publicly owned Internet infrastructure is funded by revenue bonds, avoided costs, or interdepartmental loans rather than GO bonds. When funded by general obligation bonds, a project is backed by the credit and taxing power of the issuing jurisdiction and the resource is always publicly owned. Clearly, the community of Rock Falls recognizes how critical the investment is to the community's future.

From The Mayor

In his recent State of the City address, Mayor Bill Wescott focused on three factors that drove the initiative: growth, the city’s strong finances, and local control.

While it’s common knowledge that economic development needs better connectivity than what is now available in Rock Falls, Wescott noted that residents stuck with 10 - 20 Megabits per second (Mbps) download Internet access need and deserve higher capacity connectivity to participate in the modern economy. He defined “growth” broadly, encompassing jobs, education, innovation, public safety, and government.

Not long ago, FairlawnGig in Ohio began serving businesses with symmetrical connectivity, offering speeds up to 1 Gigabit (1,000 Megabits) per second. The incremental build is progressing and now the city is offering Fiber-to-the-Home (FTTH) connectivity to residents in Fairlawn.

They Want It

According to a recent Akron Beacon Journal article, demand for residential services is already strong with more than 1,400 subscribers in line for installation; one-third of the installation is now complete. If 4,100 households and businesses in Fairlawn sign up, the city estimates it will break even. In the neighborhood where the first series of installations are taking place, 80 percent of households have signed up.

Fairlawn's goal is not to make profits from its investment; city leaders consider the network an essential piece of infrastructure like roads or sewers. They’ve chosen to fund the investment with municipal bonds, an atypical funding mechanism for Internet infrastructure. Their decision, however, underscores their commitment and belief that better connectivity is an essential service that will keep the community competitive.

“It’s going to make [Fairlawn] much more attractive,” [said local business development manager Mike Perkins]. “Fairlawn is at the forefront and everyone else is going to be playing catch-up.”

Nuts And Bolts Of FairlawnGig

When we interviewed Deputy Director of Public Service Ernie Staten about the project last spring, he described the city’s partnership with Extra Mile Fiber, an Ohio company that collaborates with Fairlawn to provide Internet access services. The city and Extra Mile will share revenue from the service, FairlawnGig.

Last spring we reported that Spencer Municipal Utilities (SMU) was marching steadily on with its Fiber-to-the-Home (FTTH) project that it started in 2015. Within a few months, SMU is set to begin the fourth and final phase; the entire community will soon will have access to fiber connectivity. 

Last And Final Phase

As part of the last phase, the utility will place a new substation in the northeast section of town. According to SMU General Manager and CEO Steve Pick, the utility has purchased a prefabricated structure built especially for this purpose. The structure will be delivered and installed by the sellers and the utility will pay approximately $40,000 for the building.

Spencer, Iowa, population 11,200, is one of the many rural towns that chose to invest in the necessary infrastructure to improve connectivity for local businesses and residents, rather than gamble on whether or not national companies would ever deliver. They began serving customers in 2000 with a cable network and, after they realized customers’ bandwidth demands would continue to rise, decided to upgrade to fiber. The network has been good for the quality of life and economic development in Spencer.

Prepping For The Future

Amanda Gloyd, SMU marketing and community relations manager, told the Daily Reporter:

“Our customers continue to use more bandwidth and we only see that continuing to increase in the future. In the areas of Spencer where the conversion is already complete, we are able to offer 50 [Mbps] all the way to 1 [Gbps] of service, which is exciting to be able to offer in addition to the increased reliability, decreased maintenance and paving the way for how our communication services will be delivered in the future.”

This is the transcript for episode 235 of the Community Broadband Bits Podcast. Lee Brown and John Williams from Erwin, Tennessee, join Christopher Mitchell to talk about the incremental build out of a Fiber-to-the-Home network. Listen to this episode here.

Lee Brown: The great thing about municipal broadband is it allows each community to decide what's right for them. We're in the greatest place of all time is being able to make that decision to do what's right for your community.

Lisa Gonzalez: This is episode 235, of the Community Broadband Bits Podcast from the Institute from Local Self-Reliance. I'm Lisa Gonzalez. We wanted to interview folks from Erwin, Tennessee for some time, now, and this week we're lucky to have them. The community, population around 6,000, has been building out a Fiber-to-the-Home system incrementally for the past few years. In addition to improving connectivity for residents and local businesses, the network has improved operations for the municipality's other utilities. Today, Christopher talks with Lee Brown, general manager of Erwin Utilities, and John Williams, fiber engineer. Lee and John, describe how the community had carefully considered what was best for them, before pursuing a fiber network. As it turns out they had considered fiber for a while before the circumstances were right to deploy. They started with a pilot program, and the network continues to grow. John and Lee offer Erwin's rational for the incremental approach, and share the way the network has improved services for all utility customers. Not only those that take Internet access services. Now, here's Christopher talking with Lee Brown, general manager, and John Williams, fiber engineer from Erwin Utilities in Erwin, Tennessee.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits Podcast. I'm Chris Mitchell, and today I'm speaking with two gentlemen from Erwin, Tennessee. We'll start with Lee Brown, the general manager of Erwin Utilities. Welcome to the show.

Lee Brown: Thanks, Chris. We appreciate being able to be part of this, today.

Christopher Mitchell: We also have with us, John Williams a fiber-optic engineer for Erwin Utilities. Welcome to the show.

Few communities in Tennessee have next-generation, high-speed connectivity, but the city of Erwin built its own network despite Tennessee’s restrictions. Now through a collaboration of federal and regional agencies, this “Little Gig City” will get assistance showing off their fiber network.

The planning assistance program, called Cool & Connected, will provide direct assistance to Erwin to develop a marketing plan for the fiber network. Cool & Connected looks to promote the Appalachian communities by using connectivity to revitalize small-town neighborhoods and encourage vibrant main streets with economic development.

Federal and Regional Collaboration

U.S. Environmental Protection Agency Administrator Gina McCarthy explained the program in The Chattanoogan: 

“Cool & Connected will help create vibrant, thriving places to live, work, and play. We’re excited to be working with these local leaders and use broadband service as a creative strategy to improve the environment and public health in Appalachian communities.”  

Three governmental agencies have brought together the Cool & Connected program to provide planning assistance to ten chosen communities in six states near the Appalachian Mountains. Agencies partnering on the initiative are the U.S. Environmental Protection Agency’s Office of Sustainable Communities, the U.S. Department of Agriculture’s Rural Utilities Services, and the Appalachian Regional Commission through the Partnership for Opportunity and Workforce and Economic Revitalization (POWER) initiative.

The “Little Gig City” That Could

In Colorado, the Delta-Montrose Electric Association (DMEA) saw record crowds at their Annual Meeting of Members. Hundreds of people came to check out the event on June 16th and try out the super fast speeds of Elevate Fiber, DMEA’s Fiber-to-the-Home (FTTH) project.  The project will bring speeds of up to a Gigabit per second (Gbps) to DMEA’s 27,000 members. 

Elevate Fiber

During the event, members were able to check out the speed in person and preregister their homes and businesses. It requires a 12-month contract at a minimum of $49.99 each month according to the DMEA’s website. Residents can sign up at https://join.elevatefiber.com/. 

Providing Internet access is a new role for the electric cooperative but DMEA has a plan: the co-op will build out the fiber incrementally. Phase I will encompass about 7,500 homes and businesses in Paonia, Cobble Creek, and the Montrose downtown business district. These locations are test cases of overhead and underground installations in urban and rural areas. 

Celebrate the Times

The Montrose Press reported that over 500 people came to the meeting, making it one of the largest in recent memory. The Annual Meeting of Members celebrated the past accomplishments of the co-op and looked ahead to the fiber future. In addition to free hamburgers and hot dogs, and an appearance by former American Idol contestant Jeneve Rose Mitchell,* attendees could see live demonstrations of Elevate Fiber.

In December 2015, the DMEA Board of Directors unanimously voted to proceed with the FTTH project. At the time, they considered building a middle mile network, but wisely chose to deploy last mile connectivity to members' homes and businesses.