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Community Broadband Bits 13 - Curtis Dean of Iowa Association of Municipal Utilities

Curtis Dean, the Telecommunications Services Coordinator for the Iowa Association of Municipal Utilities, joins us for our 13th Community Broadband Bits podcast. Curtis explains why Iowa has so many municipal utilities and why 28 of them offer some form of telecommunications service. We talk about why making sure everyone in rural areas has access to affordable, reliable, and fast broadband is good for everyone in the entire country. And Curtis shares his experiences with the publicly owned FTTH network in Spencer. We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address. This show is 30 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment! Listen to previous episodes here. You can download the Mp3 file directly from here. Read the transcript of this episode here. Find more episodes in our podcast index. Thanks to Fit and the Conniptions for the music, licensed using Creative Commons.

Cedar Falls Utilities Begins Rural Expansion

We have watched Cedar Falls Utilities (CFU) for the past several years as they upgraded their cable to fiber and started expanding their municipal network outside town limits. The Iowa water, electricity, and telecom utility just commenced further expansion to bring broadband to more rural residents through wireless and fiber with a broadband stimulus award.

Tina Hinz, at the WCF Courier, covered the story. Three new towers and more fiber installation will bring broadband service that is comparable to the connections in town to rural locations. Construction and customer installation should be completed by mid-2013.

According to Hinz:

CFU received final approval last month on a federal grant to fund nearly 40 percent of the $2.3 million installation cost. This reduces the high per-customer cost of building a communications system in an area with lower housing density. Customers will pay a similar price as those in town.

A PDF map of the rural expansion is available on the CFU website. CFU also provides a recent PDF map of their fiber-to-the-premises project, which is 70% complete.

Hinz spoke with rural customer Chris Hansen, who is in line for service through the new expansion.

Hansen called the development "a godsend." Recently he moved a mile west of the city limits on University Avenue. Accessing the web from his phone is functional but slow, he said.

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Hansen has the wireless option, which will assist with his business as a sales representative for Bertch Cabinets and in his work on the family farm. He said he may subscribe to Netflix, which streams movies and television programs, and the Internet will benefit his twin children, Christian and Carina, 13, who currently share one phone with Internet.

Tullahoma Rolls Out Smart Meters Using Public Network

Last winter, we reported on Tullahoma, Tennessee's plans to use their fiber optic network for an Automatic Metering Information system (AMI). At the time, city leaders had just started a series of informational meetings for customers. Tullahoma Utilities Board (TUB) technicians are now in the process of installing the new meters in the full service area and expect to complete the project by April, 2013.

Brian Justice of the Tullahoma News, reported:

Brian Skelton, TUB general manager, said Wednesday the results have proven to be very effective, and now the utility is spreading out to install 10,500 electric meters and 9,500 water meters that electronically read and provide TUB with the usage information.

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In addition to reading electric and water meters automatically, the system will be used for a number of other tasks to reduce peak electric demand and take advantage of TVA’s new wholesale rate plan.

As we reported earlier, utility managers decided to pursue the new system when the Tennessee Valley Authority (TVA) announced it would change to a "time of use" pricing structure. Because rates will be higher at peak times, the TUB want to give customers the chance to manage their utility costs.

Brian Coate, manager of the electric and fiber departments, told Justice:

“Automated metering will not only reduce personnel costs, but also provide better information on leak detection, outage management, and theft of service,” he said. “The system will also have a server and data portal where customers can examine their time of use habits and have more control over their bill.”

The new meters contain a radio transmitter that sends usage data to a collector secured on a utility pole. The information is then transferred to the TUB via the fiber optic network.

Electric usage will be monitored hourly while water usage info will be available on a daily basis. Customers will also be able to determine if there are any water leaks based on the results. Residents will be able to monitor their usage via a computer or smart phone.

Tahlequah, Oklahoma, Next Town to Consider Fiber Network

Tahlequah, Oklahoma, far on the eastern side of the state, recently decided to investigate the possibility of building a new network. On June 15th, the Tahlequah Public Works Authority Board approved the financing of a feasibility study on the options. According to Rob W. Anderson's Tahlequah Daily Press article:

“We budgeted $40,000 for this, and I really think it’ll probably take every bit of that, I’m guessing,” [TPWA General Manager Mark Chesney] said. “What we’re suggesting is that we go to some expert to get a proposal to tell us what a return on investment would look like, what our start-up cost would look like, how much of the market we could capture and a pretty good forecast of how long it would take to pay out on those kinds of things. That’s what a study would do.”

Chesney stated that the city wanted to know more about offering services with a fiber network, including Internet, cable, and voice. Chesney alluded to local dissatisfaction of services and the town's desire to expand economic development. The town is home to approximately 15,750 people.

We have reported on other Oklahoma communities, including Sallisaw and Ponca City, that now have publicly owned networks and provide a variety of services. Oklahoma, one of the states with a more friendly attitude toward community networks, does not have barriers in place to curtail development.

Sallisaw's DiamondNet offers triple play packages, like those mentioned in the Tahlequah meeting, for $105.95, $116.95, and 126.95. Things have worked out will in Sallisaw. Keith Skelton, assistant city director of Sallisaw, stated publicly in March that he expects the City to make a profit from the network by the end of 2012.

Farmington, New Mexico Exploring Fiber Options

Farmington, New Mexico, currently has 80 miles of fiber and has decided to consider the best way to get the most out of the investment. The City uses the fiber network strictly for its Farmington Electric Utility System but sees potential in maximizing the power of the unused strands. Earlier this year, they commissioned a study from Elert & Associates to investigate the technical possibilities. Front Range Consulting reviewed the financial pros and cons.

In February, both experts provided options to the City Council. While offering triple play services is a possibility, both firms recommended leasing available fiber to existing ISPs instead. Expanding to a triple play offering would require  a $100 million investment to connect the 32,000 current Farmington Electric Utility System's customers.

Dick Treich, from Front Range Consulting, commented on the pushback to expect from Comcast and CenturyLink, if the City decided to pursue triple play retail services. From a February Farmington Daily Times article (this article is archived and available for purchase):

"They won't sit still for that," Treich said. "First they will challenge the legality of whether you can get into that option, possibly tying you down in court for a long time. They will also start the whole argument of public money being used for starting a private business. It would be a two-pronged attack."

The City Council also pondered the option of leasing fiber, which would require a $1.5 million infrastructure investment. Also from the article:

"Five companies have expressed interest," said Assistant City Manager Bob Campbell. "Assuming that those companies would each use approximately 10 miles of fiber, (they) would provide $170,000 annually leasing dark fiber."

Update:

Bob Campbell, Acting Director of the General Services Department of Farmington, emailed us this update:

Electric Cooperatives Expand Broadband in Missouri

Rural electric cooperatives were essential to expanding electricity throughout rural America after private sector business models overwhelmingly failed to electrify our farms over many decades. Electric coops embody the spirit of local community and local concerns. Cooperatives often have decades of experience with project planning and implementation. We have seen electric coops use their own existing resources as a starting point to expand broadband access to their community.

At the Calix Community Blog, there are two videos on electric co-ops, both in Missouri, that have taken on the challenge of providing broadband to their customers.

Co-Mo Electric Cooperative in Tipton, Missouri, applied twice for American Recovery and Reinvestment Act (ARRA) stimulus funding and were twice turned down. Members of the coop expressed their need for improved broadband as a way to improve the economic situation in this central Missouri community. The cooperative pressed on without stimulus funding and have extended their community footprint. Learn more from this Calix video, Co-Mo Electric Cooperative Finds Success With Fiber:

In northwest Missouri, United Electric Cooperative (UEC) is using ARRA funds to bring broadband to the community. The co-op, located in Maryville, serves residents in ten surrounding counties. UEC brought electricity to the area 70 years ago and is doing the same for broadband through their fiber optic network. Calix highlights UEC in another customer video, United Electric Cooperative Expands Broadband in Missouri:

In Tennessee, Morristown Joins the Gigabit Club

Located in the northeast corner of the state of Tennessee, Morristown Utility Systems offers FiberNET to Morristown's 30,000 residents and businesses. MUSFiberNET is another community that decided to take control of its destiny and invest in a municipal broadband network. And by offering 1 Gbps anywhere in the community, Morristown is in the ultra-elite category of broadband in America.

We featured Morristown in one of the Muni FTTH Snapshots way back in June of 2009. They were doing well at the time but this great news shows how Morristown has brought next-gen, affordable, and reliable capabilities to anyone who wants it.

MUS FiberNET was built in 2006 and maintains a list of reasons why their network is superior to competitors. To advertise their incredible high capacity network, they developed this great billboard: morristown-gig-ad.jpg Morristown's Gig announcement never received the attention given to Chattanooga or Google's roll-out in Kansas City, which is unfortunate. For commercial users, the Gig runs $849.00 per month, a ridiculously inexpensive price point compared to what large carriers commonly charge for the service. Morristown Schools are also taking advantage of the network, including making full use of the gig service. Residential prices vary from 6 Mbps/4 Mbps, download and upload speeds, for $34.95 to 20 Mbps/10 Mbps for $74.95 and MUS FiberNET also offers a variety of triple-play bundles.

Like many other communities in Tennessee, Morristown has few choices for service from private providers. After promising the state legislature major investments in Tennessee in return for favorable legislation, AT&T decided to only served high end, dense neighborhoods, as we have seen just about everywhere else.

Communities that are satisfied with last generation connections and having no control over the networks on which they depend can make do with AT&T and cable companies. But those who want universal access to fast, affordable, and reliable services should consider building a community fiber network.

Paragould Sets An Example for Another Arkansas Town

Recently, we let you know about the situation in Siloam Springs, Arkansas, population 15,039. The town is now investigating the possibility of building their own fiber network. They have had several community meetings and a "vote of the people" is set for May 22, 2012.

Pamela Hill is investigating the twists and turrns in a series of articles about the vote. In one of her articles, Hill looked into another Arkansas community, Paragould, home of the annual "Loose Caboose" Festival.  This community, located in the northeast corner of the state, has successfully operated their own cable network since 1991. Unlike Siloam Springs, the people of Paragould weren't focused first on generating new revenue for the local government, they just wanted to be able to watch tv for a reasonable price.

Back in 1986, Cablevision was the only provider in Paragould. Hill spoke with Rhonda Davis, CFO of Paragould Light, Water & Cable:

"The public wasn’t happy with Cablevision’s service or rates,” Davis said. “We took it to a public vote and did it.”

Prior to Paragould's decision to build their own network, the City had a nonexclusive franchise agreement with Cablevision. The town was dissatisfied by the service they received and, in 1986, Paragould voters approved an ordinance authorizing the Paragould Light and Water to construct and operate a municipal cable system. Three years later, there was a referendum that authorized the city to issue a little over $3 million in municipal bonds to finance the system.

That same month, Cablevision filed suit alleging antitrust violations, breach of contract, and infringement of first and fourteenth amendment rights. The district court dismissed the antitrust and constitutional claims and Cablevision appealed unsuccessfully. The case attracted attention from lawyers and business scholars across the country.

Chattanooga Sees Rewards, Benefits From Community Fiber Enabled Smart Grid

The Chattanooga Times Free Press, reports that the City's last IntelliRuptor, or "smart switch," will be installed on April 24th. No wonder EPB was named one of The Networked Grid - Top Ten Utility Smart Grid Deployments in North America by Greentech Media. EPB also received a special award for Best Distribution Automation, thanks to its fiber-optic network. EPB and Chattanooga have been similarly recognized in the past. Quickly locating and localizing power outages will continue to limit power loss which will save tens of millions of dollars each year. According to Harold DePriest, CEO of EPB, "Nobody has applied them (IntelliRuptors) in the numbers we've applied them." A tornado on March 2nd tested the new system and, while 3,470 customers lost power, estimates are that the number would have been double without the use of the smart switches. Smart meters are also being installed, allowing customer usage data sent to the utility, which means that EPB will immediately know who has power and who does not in the aftermath of storms. EPB saved about 5 million customer minutes in 2011 with half of the switches installed and half of installed switches set up to function automatically. EPB estimates and annual saving of up to $40 million to $45 million for businesses, and between $6 million and $7 million in savings for the utility because of fewer and limited outages. Putting a dollar amount on loss due to power outages is no easy task. Estimates for losses in the United States vary but a 2005 research study from the Lawrence Berkeley National Laboratory (Berkeley Lab) put the figure at $80 billion dollars annually. With more smart grids like the EPB system, that figure could be significantly reduced. Community fiber networks are uniquely poised to offer the best option to electric utilities that need reliable, robust connections across their footprint. A significant number of smart meters (approximately 60,000) and automation points (approximately 300) remain to be installed in Chattanooga.

Chelan PUD Asks the People What the Future Holds for Their Fiber-Optic Network

Chelan PUD is asking the people of their rural community whether they “love” or “just like” their beleaguered and pioneering fiber-optic network. At a series of public input meetings to be held across the county over the next month, residents will have the chance to hear opinions from business, economic, and marketing consultants, as well as express their devotion, or lack thereof, to the network. The future of the network is in question and the Chelan PUD needs to hear from its owners.

At the first meeting, on February 28th, most residents of Chelan County said that having a locally owned and controlled network available to them was a priority. Consultants hired by the PUD said the fiber-optic network could be self-sustaining in the long term with changes in business planning. Recommendations included writing off internal debt, more aggressive marketing efforts to existing and ready locations, and collaborating with ISPs to obtain more subscribers in the open access network. Yes, the PUD Fiber-optic network has had its problems, including high installation costs due to the landscape and lack of conduit, changes in PUD leadership, and incompatible existing residential technology. Nevertheless, experts and the local community appear patient and cautiously optimistic. More meetings will follow; the next is scheduled for March 19th.

Providers lease from the PUD (state law prohibits them from competing directly with retail services) and proceeds from wholesale electricity sales have allowed the network to continue expanding. As we have reported in the past, the PUD is an open access network and while it has not been able to pay down its debt, and has had some difficulties, the PUD network has recognized value in the community, as evidenced at this first meeting. It certainly beats not having access to the essential infrastructure necessary to succeed in the modern economy.