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Nebraska Farmer Wants Fiber, Won't Be Ripped Off By Windstream

Windstream has the distinction of being one of the worst providers we have ever covered from consumers' perspective, but in rural areas many people have little or no choice. The latest Windstream debacle involves a Nebraska farmer, an outrageous price quote, and a local company that is taking on the project for about one-ninth of Windstream's estimate.

Ars Technica recently introduced us to Nelson Schneider, CTO of the Norman R. Schneider Family Trust Farm in Ceresco, Nebraska. Like many other farms today, the Schneider business needs fast, reliable connections for a variety of reasons including checking ever changing grain prices. Schneider had Windstream's DSL for $80 per month, but his promised speeds of 1.5 Mbps were clocked at 512 Kbps download and 256 Kbps upload, making business online impossible.

When he attempted to take advantage of the business class speeds Windstream advertised online, the company dismissed him. Schneider had to file a complaint for false advertising with the FCC just to get Windstream to negotiate. He wanted fiber, was willing to pay for construction costs, and considered it an investment in the vitality of the farm. 

Windstream told him it would cost Schneider $383,500 (gulp) to install 4.5 miles of fiber from his property to its facilities in town. Even though Windstream's fiber network map shows they run fiber about one-half mile away, they insisted he would need to connect to the facility farther away. When he asked about connecting to this closer line, Windstream refused to connect him. The company would not provide a reason when Ars asked for a reason.

Even though Schneider was prepared to pay thousands of dollars to bring fiber to his farm, such a preposterous quote and Windstream's refusal to commit to anything higher than 10 Mbps symmetrical were too much. He contacted Northeast Nebraska Telephone Company when he learned that they had been connecting local farms with fiber. Soon an NNTC executive visited the farm and the two talked about the possibilities. The final estimate was $42,000 or about one-ninth what Windstream demanded and now NNTC is working with Schneider to make the project easier:

Hudson Lays Out Details for Its Municipal Gigabit Network

Hudson, Ohio's upcoming municipal network, Velocity Broadband, may be serving commercial customers as early as September, reports the Hudson Hub Times. At a July 22nd Rotary Club meeting, Assistant City Manager Frank Comeriato presented details on the plan. The city has no plans to serve residents but once business services are in place, they may consider a residential build out.

The gigabit network, to be owned and operated by the city of Hudson, will be deployed incrementally. Incumbents Time Warner Cable and Windstream serve local businesses but a majority complain of unreliable connections and unaffordable prices in the few places where fiber is available.

Earlier this year, the city conducted a survey and businesses responded:

"They wanted better service and speed," [Comeriato] said. "After only two vendors responded to the city to offer the service, the city decided it could offer the service like it offers public power, water and other infrastructure."

Hudson officials realize that it connectivity is an essential service for economic development and that businesses have no qualms with relocating to places where they can get the bandwidth they need:

"Economic development is 80 percent retention, and Hudson businesses are unhappy with their current service, he added. "They want something like this."

Hudson Public Power has been preparing by training crews to deploy the infrastructure. Like other communities that have recently decided to invest in municipal networks, Hudson will focus only on Internet access and voice.

Earlier this year, the City Council approved the initial $800,000 capital expenditure to begin the deployment. According to Hudson Communications Manager Jody Roberts, the city expects to spend another $1.5 million in 2016 on infrastructure before they light the network, scheduled for 2016.

Co-Mo Cooperative Facing Off With Subsidized CenturyLink in Missouri

Parts of rural central Missouri have some of the fastest Internet service available thanks to fiber service from Co-Mo Electric Cooperative and United Electric Cooperative. The two have worked together to bring gigabit FTTH to cooperative members in central Missouri. Now that they have proven that people and businesses want high capacity connectivity, CenturyLink is about to enter the scene. The company plans to use millions of dollars in Connect America Funds (CAF) to build in areas already served by the cooperatives.

After years of planning and hard work, Co-Mo and United are not taking the threat lightly. They have filed challenges with the Wireline Competition Bureau but CenturyLink's Inside-the-Beltway power has thus far served them well. The Wireline Competition Bureau denied a challenge by Co-Mo and United but the decision appears to contradict established policy. Co-Mo and United recently appealed to the FCC asking them to review the Bureau's Order allowing CenturyLink to use over $10 million in CAF. [Read the Application for Review here.]

CenturyLink argues that Co-Mo and United are not providing voice services because they are working with a third party, Big River Telephone Company, to bring VoIP to members. If this were true, it could disqualify them as providers and lend credence to the argument that there are census blocks in the area that are not served. Because Co-Mo and United install, take phone orders for subscribers, and service phone switches, they should qualify as a provider of land line voice services. 

CenturyLink also asserted that census block information showed areas unserved even though those areas now have access to fiber connectivity from Co-Mo and United. General Manager of Co-Mo Connect Randy Klindt told us that the timing of their build prevented Co-Mo from providing an active customer in each block, but that service is available to people who live there. Even though it is not a requirement, Co-Mo and United now have detailed information that prove people in those census blocks can, and do, take FTTH service.

North Georgia Town Considering Fiber for Business

The City Council of the city of Commerce is considering using its existing fiber resources to offer connectivity to local businesses. At a November 3rd work session, Council members reviewed the plan and, according to the Main Street News, members voiced support for the idea.

“We’ve been actively working on this for months,” [City Manager Pete] Pyrzenski told the council. “We’ve been counseled on, we’ve talked through the options… this is a pretty viable utility for Commerce.” 

“We are ready to pull the fiber,” Pyrzenski declared. “Our role is to supply the fiber. We’re not going to get into cable TV, not going to get into telephone, just high-speed Internet.”

“Businesses have been looking for an alternative,” noted Mayor Clark Hill.

Windstream now serves the community of 6,500 but there have been significant complaints and there are no other options in this north Georgia town.

The city will need to invest $70,000 for equipment and legal fees. The network plan will use an existing line and will run additional fiber to expand the reach to more commercial customers. At this point, the city estimates a 5 - 10 year payback but that period may be reduced if local businesses respond positively. The city will fund the deployment with an interdepartmental loan from their municipal electric utility. Commerce also owns a municipal gas utility.

Multiple Minnesota Projects Submit "Expressions of Interest" to FCC

We reported in February that the FCC sought "expressions of interest" from entities that want a share of Connect America funds. The agency sought feedback on the need and desire for projects across the country from entities that have not traditionally received universal service funds. The FCC received over 1,000 expressions of interest.

Minnesota leads the U.S. in proposed projects. According to a recent MPR News Ground Level article, 62 expressions of interests come from Minnesota. Projects vary in size; some focus on a small number of homes while others plan to bring services to many people.

All of the proposed projects address gaps in rural broadband service. MPR noted that several of the expressions of interest describe community experience with CenturyLink, Frontier, and Mediacom. The RS Fiber cooperative wrote:

“The communities have approached all three providers [CenturyLink, Windstream, and MediaCom] and asked them to work with the communities to build the fiber network. They all refused. Then the communities offered to put up the money to construct the network and the providers could operate and eventually own the network. None of them were interested.”

The MPR article reports the FCC will likely offer approximately $86 million to the three incumbents to bring broadband to unserved and underserved areas. If they refuse, a long line of interested parties are waiting.

Minnesota's desire for broadband caught the attention of state lawmakers. A bill to earmark funds for rural broadband was introduced earlier this session and has received bipartisan support. From the MPR article:

Even if the Minnesota projects go nowhere with the FCC, they already may have had an impact here in the state.

Home Security Firm ADT Opposes Kentucky Bill to Eliminate Landlines

In February, we reported on another attempt by AT&T, Windstream, and Cincinnati Bell, to eliminate plain old telephone service (POTS) in Kentucky. According to Mimi Pickering from the Rural Broadband Policy Group, AT&T's SB 99 is quickly moving ahead and may even be up for a full House vote at any time.

Kentucky has fought to save its landlines for three years in a row. Many of us only think of landlines as a way to speak with loved ones, but for the isolated, elderly, and those that face daily health hazards, a landline is also a lifeline.

We recently learned that home security firm ADT submitted a letter opposing the passage of SB 99 because many business and residential customers rely ADT's technology designed for traditional landlines. Even thought the letter is dated March 4th, it only recently came to light. The letter states:

Many of our customers, like the one who alerted ADT to this bill, rely on POTS to carry alarm signals to and from monitoring companies like ADT.  Some also use POTS for their Personal Emergency Response Systems (PERS) and medical alert services.  ADT accepts that the transition from POTS is a natural progression towards new technology, and is actively working to develop best processes and an acceptable timeline where POTS is discontinued; however, the safety of everyday Kentuckians could be jeopardized if this is not done in a pragmatic, thoughtful way.

Kentuckians can weigh in on this bill by calling the toll free message line at 800-372-7181 and tell House leadership and their legislator to oppose SB 99.

Big Incumbents At It Again In Kentucky; Mimi Pickering in the Richmond Register

Yet again, lobbyists from AT&T, Windstream, and Cincinnati Bell are lobbying state elected officials under the false guise of improving communications in Kentucky. In a Richmond Register opinion piece, Mimi Pickering from the Rural Broadband Policy Group revealed the practical consequences of Senate Bill 99.

Republican Senator Paul Hornback is once again the lead sponsor on the bill. As usual, backers contend the legislation moves Kentucky communications forward. Last year, Pickering and her coalition worked to educate Kentuckians on SB 88, that would have eliminated the "carrier of last resort" requirement. We spoke with Pickering about the bill in Episode #44 of the Broadband Bits podcast. They had a similar fight in 2012.

In her opinon piece, Pickering describes the practical effect of this policy change:

It would allow them to abandon their least profitable customers and service areas as well as public protection obligations. But it is a risky and potentially dangerous bet for Kentuckians. Kentucky House members should turn it down.

Everyone agrees that access to affordable high-speed Internet is a good thing for Kentucky. However, despite what AT&T officials and their numerous lobbyists say, SB 99 does nothing to require or guarantee increased broadband investment, especially in areas of most need.

AT&T Kentucky President Hood Harris claims that current Kentucky law prevents the company from investing in new technology. As Pickering points out, AT&T refused to build in unserved areas when offered federal funds. Those funds came with minimum obligations; AT&T was not interested.

Mark Creekmore Takes on Windstream - Community Broadband Bits Podcast #69

Earlier this year, Mark Creekmore transitioned from a frustrated DSL customer to a champion for better Internet access in Georgia. A concerned citizen and tech consultant, Mark joins us for the latest Community Broadband Bits podcast. He discusses his history with Windstream and the steps he went through to improve his Internet access. Along with this interview, you can read a how-to guide he wrote on DSL Reports. Mark documented the times his connection speeds fell, his calls to tech support, and their inability to deliver what they promised. Finally, he helped the CBS Atlanta affiliate to cover Windstream's failure to deliver promised services. We became aware of Mark as he became aware of Windstream's efforts to revoke local authority from local governments to build networks that would deliver the services that Windstream would not. Read our coverage of those legislative fights from 2013 and 2012. Read the transcript of our conversation here. 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 22 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed. Listen to previous episodes here. You can can download this Mp3 file directly from here. Find more episodes in our podcast index. Thanks to Mudhoney for the music, licensed using Creative Commons.

Small Minnesota Town, Annandale, Fed up With Slow DSL

Yet another Minnesota town is fed up with slow, unreliable Internet access and is examining what it can do to make sure it has the network it needs to succeed in the modern economy. Annandale is 50 miles northwest of Minneapolis with a population of 3,200 and has Windstream as the telephone company. Windstream, as with other large firms that primarily serve rural America, offers a DSL more suited to the late 1990's than 2013. It has little capacity to invest in better networks, even if it had the willingness. We've covered Windstream several times in previous stories. After a flood of complaints from residents to City Hall about slow speeds and frequent outages, the City issued a request for proposals for a feasibility study that will explore alternatives to the present reliance on Windstream. Local leaders understand that the private sector is not likely to invest significantly in its community due to its density and rural location. But the town needs modern Internet access to retain and attract good jobs. The Annandale Advocate newspaper ran a story on September 17 but it is not available for non-subscribers.
At a chamber of commerce meeting later in the week Gunnarson added that strong broadband is a basic, essential feature of modern commerce. "New businesses expect good Internet. When you buy a car you expect tires on it. Unfortunately, our car has wooden tires," he said.
logo-annandale-advocate.jpg The same paper published a guest editorial by City Council members to explain how little power the City has over private providers. Many people falsely believe that towns are actively keeping competition out:
We even had some people angrily ask our staff why are we keeping the competition out. So to set the record straight, the city can't do much about it because it is all private wires, equipment, operations and corporate customer service. Also, a recent call to the PUC, the Public Utilities Commission, confirms that not much can be done since broadband is not regulated. Sorry folks. As far as letting in competition, we have zero say in that. Any other provider can come in any time.

First BTOP Project Connects Rural North Georgia Communities

Back in December, 2009, Vice President Biden travelled to Dawsonville, Georgia, to officially kick off the American Recovery and Reinvestment Act (ARRA) program. The first award, a grant of $33.5 million, went to the North Georgia Network Cooperative. The group combined that grant with local and state funding and in May, 2012, lit the North Georgia Network (NGN).

We spoke with Paul Belk, CEO of NGN, who shared the network's story and described how it is improving economic development while serving schools and government across the region. We also recently published a podcast interview with Paul Belk.

In 2007, Bruce Abraham was the Lumpkin County Development Authority President and could not recruit new business to the region. Atlanta is only 60 miles away but companies and entrepeneurs were not willing to branch out toward north Georgia. Business leaders repeatedly told Abraham they were not interested because of the lack of broadband. DSL was available from Windstream, but businesses kept telling Abraham, "That's not broadband." North Georgia was losing jobs and there was no strategy to replace them.

Abraham found economic development representatives from Forsyth, White, Union, and Dawson counties shared the same problem. With North Georgia College & State University in Dahlonega, the group decided to address the problem together.

In 2008, they received a OneGeorgia Authority BRIDGE grant. They used the $100,000 award to commission a feasibility study that suggested the area had potential as a new tech hub. The study also indicated that the region's traditional manufacturing and agricultural industries would continue to dwindle. The group, determined to pursue the establishment of a new tech economy, knew the first step would be next-generation infrastructure.