Waterloo, Iowa’s municipal broadband project has taken a major step forward after nearly two decades of planning.

Waterloo Fiber officials just launched their first limited fiber trial, will connect their first commercial customers in February, and are on target to deploy affordable fiber at speeds up to 10 gigabit per second (Gbps) to every last city resident by 2026.

When we last checked in with Waterloo in February of last year, the city was putting the finishing touches on a plan to spend $115 million to build a fiber backbone accessible to all 67,695 Waterloo residents, after locals approved the city issuing general obligation bonds to fund the start of the three-phase construction project.

Construction of the network began last summer at a groundbreaking ceremony hosted by Waterloo Mayor Quentin Hart.

“It will be the lifeline that connects our entire community, enabling businesses to thrive, students to excel and families to stay connected," Hart told attendees. "This fiber system will lay the foundation for a smart city innovation, economic growth and an enhanced quality of life for all our residents."

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Last month the city connected the first of four participants in a limited pilot project.

After years of consideration and planning, Waterloo, Iowa is finally moving quickly forward with its plan to build a citywide municipal fiber network. Once complete, the network aims to provide the city’s 67,695 residents with an affordable, fiber-based alternative to local monopolized broadband options that have long left regional locals frustrated and disappointed.  

Waterloo expects that it will cost somewhere around $115 million to build the necessary fiber backbone and connect all Waterloo residents and businesses to the fledgling network. City officials expect the first customers to go live sometime later this year at up to gigabit speeds, though it will take roughly three years for the entire network to be built.

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Much like the rest of the country, Waterloo leaders and residents received a crash course in the importance of affordable broadband during the Covid crisis, when the country’s spotty, sluggish, and expensive broadband networks were on full display due to a massive rise in telecommuting and home education.

Voters Declare GO Time on Muni Broadband

Fueled by frustration, Waterloo voters in September overwhelmingly approved the city issuing general obligation bonds to fund the start of construction for a city-wide municipal fiber network.

Earlier this month, Waterloo City Councilors unanimously approved a $2.5 million contract using its American Rescue Plan funds to hire Magellan Advisors to design and engineer a fiber-to-the-home network for the ninth-largest city in Iowa (est. population 68,000).

The plan, as we previously reported, is to deploy 309 miles of underground fiber across the city, which according to Magellan’s proposed contract, will pass “nearly every household and business throughout the community.”

Although the design and engineering work will provide city officials with an official estimate on how much it will cost to build the network, a study commissioned by the Waterloo Industrial Development Association (WIDA) in 2019 estimated it would cost between $39 million and $65 million to construct a city-wide network, according to the Waterloo Cedar Falls Courier.

The city’s Chief Financial Officer, Michelle Weidner, told Government Technology magazine the city is likewise eyeing American Rescue Plan funds to help pay for construction costs, although City Councilor Pat Morrissey noted that a bond issue will likely be necessary – something that Morrissey said is well worth it “in the long run.”

"You don't grow a community by cutting, you grow a community by investing," Morrissey said. "And what we as taxpayers will be doing is investing in something that is so long overdue, and I believe will be so appreciated."

Long Time Coming

Iowa is home to many community networks, from co-ops to muni cable, fiber, and other technologies. Three communities in the state have just recently made important announcements about their plans, and several others are moving forward with networks. There is so much happening in Iowa right now that shows potential for other states that don't limit competition.

There is a long history of local broadband excellence in Iowa for new networks to draw on. Cedar Falls Utilities was just recognized as the fastest ISP in the nation by PCMag. It has well over 20 years of success, but recent years have seen it sharing its expertise and facilities to lower the cost for other communities to build networks without reinventing the wheel. Local private Internet service provider ImOn is also a partner for these networks, offering voice services.

Many of these networks being built will be able to share services and lower their costs by being on the same ring to get some scale benefits despite being smaller communities. I remember many years ago when Eric Lampland of Lookout Point started pushing for this ring, and I am dumbfounded why we don't see more of this cooperation among munis and small providers in other states. Thanks to Eric and Curtis Dean of SmartSource Consulting who helped me with background for this Iowa update.

We have a brief mention of West Des Moines's recently announced partnership with Google Fiber in here, but we're finishing a longer post that solely examines their approach. Between this, that, and our Coon Rapids podcast this week, it is officially Iowa week on MuniNetworks.org!

Vinton

Vinton's new municipal fiber network has just started connecting subscribers, leading to a memorable testimonial in the local paper, Vinton Today:

Fourteen years ago, voters in Waterloo, Iowa, overcame a campaign aimed to prevent them from developing publicly owned Internet infrastructure. They voted to allow the city to create a municipal telecommunications utility in the fall of 2005, but the idea languished. Recently, however, leaders in Waterloo have taken up the initiative and are moving ahead.

Time to Advance

At their September 25th meeting, trustees on the Waterloo Telecommunications Utility board unanimously voted to hire a consultant in order to move forward on the plan that voters approved back in 2005. Two local organizations have conducted studies on connectivity in the Waterloo area within the past year.

“I think it’s time,” said board member Rich Kurtenbach, “We’ve got communities all around us that have their own utilities when it comes to broadband.”

Since 2005, the community has never approved funding to develop a publicly owned broadband network. The Telecommunications Utility board has met to discuss the possibility of asking the community for funding on several occasions and at one time requested enough to hire a consultant once, but the measure failed. The issue has been on the shelf since 2014 and, according to Chris Wedland of the city attorney’s office, “This board has had a unique history and it has had large gaps in its operating history.” Now that the board is active again, their first step has been to select a consultant to help them with next steps.

Waterloo doesn’t have a municipal electric utility like many of the other Iowa cities that have already deployed Internet network infrastructure. As Mayor Quentin Hart commented, “At some point we’re going to have to get some experts in here to start helping us move the process forward.”