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Ammon's Network of the Future - Community Broadband Bits Podcast 207

On the heels of releasing our video on Ammon, Idaho, we wanted to go a little more in-depth with Bruce Patterson. Bruce is Ammon's Technology Director and has joined us on the show before (episodes 173 and 86). We recommend watching the video before listening to this show. We get an update from Bruce on the most recent progress since we conducted the video interviews. He shares the current level of interest from the first phase and expectations moving forward. But for much of our conversation, we focus on how Ammon has innovated with Software-Defined Networks (SDN) and what that means. We talk about how the automation and virtualization from SDN can make open access much more efficient and open new possibilities. Check out Ammon's Get Fiber Now signup page or their page with more information.

This show is 27 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Forget the Whale for the music, licensed using Creative Commons. The song is "I Know Where You've Been."

Spencer, Iowa, Keeps Building

This month, Spencer Municipal Utilities (SMU) will continue to expand the town’s fiber network. The steady incremental build will bring better Internet access to residents, business, and municipal facilities in the northwest Iowa town.

Incremental Approach

The Spencer Daily Reporter wrote about how SMU is connecting more residents with Fiber-to-the-Home (FTTH) one step at a time. The municipal utility broke the project into four phases.

Phases I and II included 2,700 homes and businesses. Phase III, which begins this month, will impact more than 1,100 homes and businesses. Phase IV will finish extending FTTH service to the rest of the city.

The project will replace the existing telecommunications infrastructure installed in the late 1990s. Curtis Dean of the Iowa Association of Municipal Utilities described the network's history in our Community Broadband Bits podcast from 2012.

Evolving Needs, Changing Technology

Spencer Municipal Utilities marketing and community relations manager, Amanda Gloyd, said to the Spencer Daily Reporter:

"Just like internet service has evolved from dial up to digital service lines and cable modem, fiber will give customers the next level of service to continue to improve the way they live, work, and play and we are continuing to build out this service throughout the community of Spencer."

Spencer, like many other small towns, chose to invest in Internet network infrastructure so residents and businesses in this rural area could get fast, affordable, reliable services. Subscribers appreciate the excellent customer service that comes with their local, publicly owned network.

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Before We Leave

Legal Eagles: Ammon FTTH Can Fly As Planned

Ammon now has judicial confirmation to move ahead on their Fiber-to-the-Home (FTTH) project.

As we reported earlier this year, Ammon's Fiber Optic Department, led by IT Director Bruce Patterson, is on the verge of commencing the next phase of its incremental network deployment. Bruce explained to Chris in Episode #173 of the Community Broadband Bits podcast, how the city will create a utility and residents who choose to participate will pay to have the network connected to their homes. The first area where FTTH will be deployed includes approximately 300 properties.

Innovative Participation Model

As Bruce put it:

"…[I]t seems logical that since fiber to your home raises your property value that we'd find some way to bond for that and put the payment for that bond as on assessment on your property tax because it does actually increase your property value so that's our goal. We do that with what they call a local improvement district."

Ammon intends to issue bonds that will then be paid with funds from assessments levied on the properties of those who wish to connect to the network. If a property owner wants to connect to the network, they will also become a "Utility Member" and will pay a monthly fee to use the service. Ammon's FTTH network will be open access; the city will not provide retail services but will maintain and operate the infrastructure. Residents will subscribe to the services offered by ISPs that operate over the network.

Ammon also intends to offer a low-cost option that will allow Utility Members to access basic functions, such as checking email, messaging, and file transfers without the need to subscribe to an ISP. Their plan will allow people in the community who cannot afford more advanced services to still have access to basic Internet tools.

In order to determine which neighborhoods want fiber, Ammon asks residents to sign up so they know where to aim the next build.

Sweet Validation

Santa Monica's Muni To Help Bridge The Digital Divide

Earlier this month, the Santa Monica City Council met to approve rates for the city's Digital Inclusion Pilot Program. The program is already in place, bringing free Gigabit per second (Gbps) Internet access to computers in community rooms in ten affordable housing complexes. The March 1st vote expands the program to offer residents the opportunity to sign up for services in their homes.

According to the Santa Monica Mirror, official monthly rates are set at $69 for 1 Gbps and $360 for 10 Gbps. People receiving Public Assistance will be able to obtain a discount to lower the rates to $48 and $252 per month respectively. An additional FCC Lifeline subsidy for those who qualify will lower the cost further to $38.25 per month for 1 Gbps Internet access. Download and upload speeds are the same.

Staff at the city established the rates for the pilot after studying rates in other markets where Gigabit access is available including Chattanooga, Lafayette, and Google Fiber. In order to support adoption in lower income households, city staff analyzed discounts that typically apply for other utilities and suggested a 30 percent discount for those actively participating in those programs. This approach does not exclude the elderly or households without school age children, one of the criticisms of Comcast's Internet Essentials. The staff report is available at the city website.

The Council approved a resolution, which also included construction funding of $175,000 for the project.

“In a global economy, any competitive edge we can offer our community is a worthy venture,” Gary Carter, Santa Monica City’s Community Broadband Manager told The Mirror.

“Santa Monica is uniquely positioned to collaboratively innovate as a community to fully leverage the technology of a cutting edge fiber optic network.” 

Long Time Coming

Ammon, Idaho Preparing for FTTH Expansion

Officials in the City of Ammon, Idaho, are moving closer to expanding their municipal network to residents with a Fiber-to-the-Home (FTTH) network. The FTTH expansion is the latest phase in their incremental approach in this community of 14,500 people in the southeast corner of Idaho.

Ammon’s Director of IT, Bruce Patterson, told us the history of the network’s development in a 2014 Community Broadband Bits Podcast. After starting the network several years ago with just a single link between two municipal buildings, the network gradually expanded the network to community anchor institutions. They also decided to serve businesses on a case-by-case basis. Since the beginning, the city kept its eye on its goal: to offer fiber access to every home in Ammon.

Ammon's FTTH Expansion Process

Ammon officials are acting prudently to gauge customer demand and wait for the necessary funding mechanisms to fall into place prior to additional construction. As we reported in August 2015, officials are asking residents to submit an online form to express their intent to sign up for service. City officials also held meetings with residents in September and October to explain the proposed expansion plans and give residents a chance to test out the gigabit speed service.

The city plans to extend residential service one large neighborhood at a time, letting customer demand dictate the direction of the expansion. The city will pay for the expansion entirely through service commitments from residents who choose to have a fiber connection extended to their home. This method will allow the city to expand without contributions from non-subscribers.

Patterson told us that the city is currently in the process of getting legal approval to bond on the FTTH expansion phase. He said he is confident the city will soon be approved for the bonding and anticipates that they will be able to put a shovel in the ground by May or June of this year.

Hudson's Velocity: Fiber For Local Businesses

In Hudson, Ohio, local businesses prepare for the expansion of the municipal fiber network, Velocity Broadband, and a large business relocates its headquarters to take better advantage of the fiber connectivity.

Excitement from Local Businesses

Thanks in large part to Hudson’s fiber network, a leading provider of recovery management services has moved within the small town to a new state-of-the-art headquarters. The Millennium Capital and Recovery Corporation provides recovery management services nationwide and depends on fast, reliable connectivity in order to meet clients’ needs. The new headquarters location provides for future growth and is equipped to utilize the city’s fiber connectivity. This is just one local business  benefiting from Velocity Broadband.

On January 27th, the city hosted an open house for business leaders to come and learn about the opportunities available through the gigabit fiber network. More than 40 businesses participated and received information on the current plans for Velocity Broadband in the downtown area. The Hudson Hub Times features an exclusive map of the downtown area where the service will soon be available. City Office Manager Maureen Reich described the elation for the high-speed service at the open house: 

“They [local businesses] are very excited… They ask 'when is it coming?' and 'how much does it cost?'"

Velocity Broadband Next Phase: Spring 2016 

Since mid-2014, the city of Hudson, Ohio, has investigated ways to support the connectivity needs of the community and boost economic development. After trying to partner with private providers, the city decided to build out its institutional network fiber which connected municipal buildings and anchor institutions. Throughout 2015, city leaders developed plans to launch Velocity Broadband to bring affordable, reliable connectivity to local businesses. City leaders expect work on the next phase to begin in spring 2016 with several customers connected in May.

Electric Coop Green Lights Fiber Pilot Project

Electric coops empowered communities during rural electrification in the 1930s, connecting people to power grids. Now electric coops have the opportunity again to empower communities through affordable, high-speed connectivity. In Colorado, the Delta-Montrose Electric Association (DMEA) is moving forward with a pilot project for a Fiber-to-the-Home (FTTH) network.

Unanimous Decision for Fiber

In late December 2015, the DMEA Board of Directors gave the green light to start the pilot project. The move to provide connectivity comes as no surprise. DMEA considered providing middle mile connectivity for a long while before coming to the decision to instead deploy FTTH. If the coop had chosen to develop the middle mile network, they would not have connected members’ homes, but instead would have built infrastructure connecting to the larger Internet. 

Many projects funded with American Recovery and Reinvestment Act (ARRA) stimulus funds were built as middle mile networks. At the time, policy makers theorized that middle mile projects would encourage private sector last mile providers to complete the link to subscribers. Over time, this theory has proven too optimistic. Municipalities and smaller private providers are connecting to middle mile networks in some places, but the large scale build out expected from big name providers is just not happening.

For DMEA, FTTH is their solution: building a larger network and taking the fiber directly to members’ homes. Virginia Harman, DMEA spokesperson, described the decision to do FTTH as a reaction to member demand. In a recent survey, members highlighted the importance of high-speed Internet access for their homes. The goal now is to build the network in a sustainable way.

Phased Approach to Connectivity

SandyNet Goes Gig: A Model for Anytown, USA

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Many of the most beautiful communities in the United States are in remote areas where incumbent cable and telephone companies have decided not to offer modern, high-quality Internet connectivity. Sandy, Oregon, is one of them. Some 10,000 people live there among the lush green forests and beautiful vistas of the “Gateway to Mount Hood,” 25 miles east of Portland. But Sandy decided to build its own gigabit fiber optic system and now has one of the most advanced, affordable networks in the nation.

A new report by The Institute for Local Self-Reliance details the rise of SandyNet, Sandy's publicly owned high-speed Internet service. "SandyNet Goes Gig: A Model for Anytown USA" charts the growth of this community network.

Sandy, Oregon joined nearly 100 other local governments that have municipal fiber-to-the-home networks to give residents and businesses access to world-class Internet connections. However, the overwhelming majority of municipal fiber networks were built by local governments that already owned their local electrical grids. As Sandy does not have a municipal electric utility, it pioneered a low-risk incremental strategy to build its telecommunications utility, SandyNet.

Hudson Brings Velocity to Businesses in Ohio

In mid-September, Hudson, Ohio launched its Velocity Broadband service, bringing 1 gig connectivity to a large business complex. The commercial site is the first in series of industrial areas where the city officials plan to bring the network in the coming years. The community, located near Akron, hopes to eventually bring Velocity Broadband to residential areas.

The network is already exceeding expectations. Less than a month after the initial network launch, City Manager Jane Howington said local officials expect to surpass their goal of 50 customers by the end of 2015:

"It's moving faster than we thought," said City Manager Jane Howington. "Demand has been much greater than we thought."

Merchants are embracing Hudson’s new status as a “Gig City,” offering “Giga Specials” during the month of October and the city’s mayor declared October “Gigabit City Month.”

According to the city’s Broadband Needs Assessment, Hudson is building the network in response to significant problems with the city’s existing broadband options. Small and medium sized companies complained to the city’s consultants on the network that they have “learned to live with” problems of poor reliability, performance, and affordability of the city’s broadband services. They said even the best available broadband service options over DSL and cable are inadequate and negatively affect their ability to do business.

City officials plan to continue rolling out access to the city’s downtown area next year and to other business areas soon after. Although the city of 22,500 has no timeline on residential service, city officials have expressed the intent to eventually bring the fiber optic network to every home.

The Benefits of, Lessons From, SandyNet - Community Broadband Bits Episode 167

Two of the stars from our video on SandyNet in Oregon, join us this week for Community Broadband Bits episode 167. Sandy City Council President Jeremy Pietzold and IT Director Joe Knapp (also SandyNet General Manager) tell us more about the network and recent developments as they finish connecting the majority of the City to gigabit fiber. 

We talk about the challenges and lessons learned along the way as they transitioned from running a Wi-Fi network in some areas of town to all areas of town to overbuilding the wireless with fiber optics. Jeremy also discusses more of a story we recently reported on SandyNet's business services, which are the lowest cost, highest capacity deals we have seen. 

This show is 30 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.

Transcript below.

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to bkfm-b-side for the music, licensed using Creative Commons. The song is "Raise Your Hands."