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The Tacoma Click Saga of 2015: Part 1

This is Part 1 in a four part series about the Click network in Tacoma, Washington, where city leaders spent most of 2015 considering a plan to lease out all operations of this municipal network to a private company. Part 1 explains Tacoma's plans for Click's immediate future.

Part 1: Tacoma Votes to Explore Keeping Click!

2015 was a tense year for Tacoma Click, the nearly 20-year-old municipal network in this city of about 200,000 just south of Seattle. In March of 2015, Tacoma Public Utilities (TPU) announced it was considering a proposal to sign a 40-year agreement to lease out the network to a private Internet Service Provider (ISP). But after months of deliberations, the Tacoma City Council decided in December with a resounding 8-0 vote at the last City Council meeting of the year to explore what the city calls their “all in” option: a plan which, if implemented, would include technological upgrades and major structural changes to the business model aimed at preserving Click as a municipally-owned network.

When Tacoma Click, one of the first municipal networks in the U.S., launched its Hybrid Fiber Cable (HFC) system in 1999, the network provided Internet speeds that were among the fastest in the country. For the past two decades, Tacoma Click has provided community anchor institutions, businesses, and residents in Tacoma with access to retail Cable TV service and wholesale Internet and phone service. 

Click has never managed to pay for itself. However, nothing in Click’s financial reports can account for the municipal network’s numerous indirect contributions (both economic and otherwise) and overall value to the Tacoma community as a whole. There are also promising signs that the network is positioned for future growth.

Taking Sides

Tennessee Potential Partnership Between Morristown Muni and AEC Co-op - Community Broadband Bits Podcast 203

In Tennessee, this month marks 10 years of Morristown Utility Systems delivering fiber-optic triple-play service to the community, including great Internet access. But those living just outside the city and in nearby cities have poor access at best. MUS General Manager and CEO Jody Wigington returns to our show this week and we also welcome Appalachian Electric Cooperative (AEC) General Manager Greg Williams to discuss a potential partnership to expand Morristown services to those that want them. As we have frequently noted, Tennessee law prohibits municipal fiber networks from expanding beyond their electric territories. The FCC decision repealing that favor to the big cable and telephone company lobbyists is currently being appealed. But Tennessee also prohibits electrical co-ops from providing telephone or cable TV service, which makes the business model very difficult in rural areas. Nonetheless, MUS and AEC have studied how they can team up to use the assets of both to deliver needed services to those outside Morristown. We discuss their plan, survey results, the benefits of working together, and much more. 

This show is 24 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."

Muni In Muscatine: Upgrades, Speeds Up, Outperforms

Cedar Falls may be the Iowa city famous for its Fiber-to-the-Home (FTTH) network, but that won’t stop Muscatine. This small city of approximately 29,000 people is about to upgrade its aging network. For a little over a year, the municipal utility, Muscatine Power and Water (MP&W), has planned for the move to FTTH with funding from an interdepartmental loan. Now, FTTH is coming to Muscatine's MachLink Internet access service.

MP&W expects to break ground this year on this $8.7 million FTTH project and to finish building the network in 2017. Fiber will offer speeds much faster than those available on the existing hybrid fiber-coax (HFC) network. In anticipation, MP&W is increasing speeds for subcribers without raising rates.

More than a Year in the Making

The local newspaper, the Muscatine Journal, has closely followed the story. In late November 2014, MP&W announced the planned FTTH upgrade. MP&W is taking a slow and steady approach and planning to complete the upgrade in 2017. The latest Muscatine Journal article from this March emphasized how the large infrastructure project has many "interlocking" pieces that must fit together to make the project successful.

As we reported when MP&W announced the upgrade in 2014, a FTTH network will achieve immediate goals and help achieve a number of benefits. MP&W wants to improve residential services, reduce maintenance costs, and increase network reliability. Upgrading to FTTH will also contribute to long-term goals, such as encouraging economic development. Fiber is a future-proof technology, adapting to the increasing need for bandwidth from households, businesses, and institutions. MachLink will offer speeds of up to a Gigabit (1,000 Megabits) per second.

Outperforming Expectations

Westfield To Widen Whip City: FTTH Pilot A Hit

Another pilot program is evolving into greater things.

Whip City Fiber, the Fiber-to-the-Home (FTTH) network deployed by Westfield Gas & Electric (WG+E) in Massachusetts, announced in April that it has chosen three more neighborhoods for network expansion. Residents in the target neighborhoods are invited to sign-up by May 15th for one month’s free service. WG+E offers symmetrical 1 Gigabit per second (Gbps) service for $69.95 per month for residents and $84.95 per month for commercial subscribers. Wi-Fi routers are included; there is no charge for installation and no contracts. 

Whip City Fiber only offers Internet access but like other municipalities opting out of video services, they see the trend toward Internet TV:

"This is not TV. But what we see is a lot of cord cutters that are streaming programming on Netflix, Hulu and Apple TV," [WG+E marketing and customer service manager Sean Fitzgerald] said. "The only thing missing are sports channel and those are coming around."

Expanding Use Of Fiber In Westfield

A Berkman Center report on nearby Holyoke Gas and Electric referenced Westfield’s recent pilot project. WG+E began using fiber-optic connections to monitor substations and municipal facilities, including schools and administrative buildings, about 20 years ago. The community also has a Municipal Light Plant (MLP), the entity responsible for owning and operating a municipal fiber network, and used the fiber infrastructure to provide Internet access to Westfield’s municipal facilities and local businesses for the past ten years.

In February, WG+E announced that it would expand the network beyond the pilot area and encouraged residents to express their interest by signing up. It was through those sign-ups, in part, that the utility determined these first expansions. According to WG+E General Manager, choosing the target area was no easy task:

Grass Will Be Greener With FairlawnGig In Ohio

Fairlawn, Ohio, a quaint little city in Northern Ohio, it is about to get a big Gig – lightning fast Internet speeds of up to one Gigabit (1000 Megabits) per second (Gbps) – for $75 a month. The city has considered the prospect of such a network since last year, and now the community is moving forward.

On April 4th, Fairlawn City Council unanimously approved several ordinances to build a Fiber-to-the-Home network (FTTH) called “FairlawnGig.” For financing, the network will use revenue bonds in an agreement with the Development Finance Authority of Summit County.

A New FTTH Muni

In November 2015, Fairlawn hired a consultant and envisioned a public-private partnership for the FTTH plan of FairlawnGig. Now, however, these ordinances ensure that the $10 million network that will begin construction in May 2016 will in fact be a municipal network. The ordinances enable the city to enter into a contract with a firm to design and construct the network in the way that best meets the community’s needs.

Currently, the prices are established as:

  • Residential 1 Gbps – $75
  • Residential 100 Mbps - $55
  • Residential 30 Mbps - $30

All speeds will be symmetrical, so upload and download speeds are equally fast. The network will also offer phone service for an extra $25 a month. Businesses have similar speeds for prices between $90 and $500.

FairlawnGig will serve not only the 7,500 residents of Fairlawn, but it will also provide connectivity to the Akron-Fairlawn-Bath Joint Economic Development District. Ohio communities use these sort of districts to share infrastructure improvement projects.

From Vision to Reality

After thanking the City Council for passing the ordinances that have enabled the FTTH project, Fairlawn Mayor William J. Roth, Jr. further reiterated the purpose of the network:

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

Sun Prairie Utilities' Pilot Project Shows Way to Better Connectivity

Welcome back to Sun Prairie, Wisconsin. This town has brought to light the shocking stories of slack service from incumbent providers, the complicated decisions of community representatives, and the hopeful beginning of a fiber-to-the-home (FTTH) network

The City Council has just approved $16,000 to hire an engineering consultant for the estimated $27-35 million citywide plan. 

In the Pilot Project, So Much Demand!

In July 2015, City Council approved the $624,000 plan for the pilot project, but several factors brought the actual cost up to about $653,000. The pilot project area included the neighborhood Smith's Crossing, the Main Street Corridor, and the TIF District 9 area. 

Sun Prairie Utilities first slated the project for completion in early December, but that underwent several delays. For instance, an over-booked contractor started on the project a month later than expected. Meanwhile, rocky soil conditions and high-demand slowed the pace of construction while raising costs. The Sun Prairie Utilities Manager Rick Wicklund will present the final costs for the pilot project this month. 

The original budget had assumed a 30 percent take-rate that would see a positive cash flow in three years. In actuality, 54 percent of households in the pilot project area are requesting the services.

Forty-three percent have requested the 100 Megabits per second (Mbps) for $49.98 each month while 11 percent want the higher-speed service of 250 Mbps for $69.98 each month. The capital expenditure of these unexpected last mile connections brought the cost up, but the extra revenue from these connections will certainly help offset those costs. 

Pilot Project Teaches Lessons

Sweet Sixteen: Waverly Utilities Hooks Up First Fiber Customers

This week in Waverly, Iowa, the local electric utility, Waverly Utilities, hooked up the first customers for its new Fiber-to-the-Home (FTTH) network. It’s been a long time coming for the town of 10,000 people. 

16 Years Ago: A Vision

The community first had the idea back in 2000 when they voted to form a municipal telecommunications utility after incumbent providers proved a letdown.  Reacting to the vote, those incumbent providers improved their networks a bit, so Waverly Utilities decided to hold off on building a fiber network. 

In 2013, residents and businesses found that the incumbent providers were again not providing necessary connectivity. Taking matters into their own hands, they pushed to create a new, publicly owned network. By 2015, the community had secured revenue bonds for the $12 million project.

Today: A Reality

Waverly Utilities already has 1,100 customers signed up to receive the service, and more homes and businesses will be connected over the next three months. By July 1st, Waverly Utilities’ network will be fully operational, delivering the next-generation connectivity that residents have long been waiting for.

For more about Waverly's project, take a few minutes to listen to Chris interview Mike Litterer, who was serving as Interim General Manager of Waverly Light and Power in 2013. He talked with Chris during Episode #53 of the Community Broadband Bits podcast.

It Takes a Village: Yellow Springs, Ohio Grassroots Group Wants Fiber

In the Village of Yellow Springs, Ohio, Springs-Net has created quite a stir among the 3,500 people. This grassroots group of villagers is advocating for a municipal network. Last year, they hosted a community Fiber Forum featuring our own Chris Mitchell. Now, they’re continuing the push for better home Internet access.

Springs-Net released a white paper on a possible municipal fiber network, bringing the results to the Village Council on February 16th. Although cautious of leaping into a large project, the Village Council recognized the benefits a network could have for the town and agreed to meet with the group in April to discuss next steps to improving connectivity.

Working From Home? Yellow Springs Says "Yes"

At the February 16th Village Council meeting, Scott Fife represented Springs-Net to provide an overview of the findings in the white paper. A retired Director of Information Technology at Centerville City Schools, Fife concentrated on information most relevant to the needs of the Yellow Springs community. 

According to Fife, over the last 15 years, the local business community has grown to include over 195 home-based businesses, an increase of 35%. In addition, the number of home-based engineering or scientific workers has increased 69% during the same period. Fiber connectivity could boost these existing businesses while attracting new ventures to the Village. 

Holland, Michigan Pilot Project Could Lead to More

pilot project in the City of Holland, Michigan is now delivering gigabit speed Internet service via a dark fiber network built by the city more than two decades ago; three commercial buildings are connected. The project, led by the Holland Board of Public Works (HBPW), is the first phase in an effort to develop a municipally owned and operated fiber network.

Holland is home to about 33,500 people and situated on the shores of Lake Michigan. The community is known for its roots in Dutch culture and is a popular summer tourist destination. Windmills and tulips dot the landscape.

Daniel Morrison, the president of a software company in Holland and a member of a local public interest group called Holland Fiber, recognizes that businesses need fast, affordable, reliable connectivity:

“Our whole business is online,” he told the Holland Sentinel newspaper. “We’re working with clients all over the world and we want to be able to work as quickly as possible.”

Morrison’s company is a pilot tester. After the testing program began in January, Morrison Tweeted out a screen grab showing his Internet speeds:

screen-grab-holland-mi.png

Pretty darn fast.

Toward a Municipal Network?

Pilot testing is set to last for three months to allow Holland’s Board of Public Works (BPW) to test out network technologies and solicit feedback from testers. All of the pilot testers are getting free fiber Internet service during the testing period.

Holland's BPW plans to apply their findings from the test toward a business plan for a municipal network for the entire service area. They will also use the business plan to support an application to the State of Michigan to become an authorized Internet Service Provider. BPW officials expect state regulators to respond to their application by the fall of 2016.

History of Holland’s Fiber Network