nebraska

Connectivity Cornucopia: We Give Thanks!

This time of year, people come together to celebrate the things they are thankful for and appreciate. Here at the Institute for Local Self-Reliance, we want to take a moment to appreciate all the communities, people, and wonderful ideas that help spread the concept of fast, affordable, reliable connectivity.

A few of us looked into the cornucopia that is feeding the growth of publicly owned Internet networks and picked out some of our favorites. There are more people, places, and ideas than we could write about in one post. Nevertheless, it's always good to step back and consider how the many contributions to the Connectivity Cornucopia accelerate us toward high-quality Internet access for all.

People: Colorado Local Voters

We appreciate the voters in Colorado who chose to reclaim local authority. This year, 26 more counties and municipalities asked voters to opt out of restrictive SB 152, and all chose to take back telecommunications authority. They joined the ranks of a groundswell of local Colorado citizens who have voiced their opinion to Denver - 95 communities in all. They know that they are the best situated to make decisions about local connectivity and, even if they don’t have solid plans in place, want the ability to investigate the options. Colorado voters rock!

Place: Ammon, Idaho  

The unfolding municipal fiber network in the city of Ammon, Idaho (pop. 14,000) continues to attract a steady stream of honors and opportunities. In August, the National Association of Telecommunications Officers and Advisors (NATOA) named Ammon’s open access network the 2016 Community Broadband Project of the Year.  Two months later, the city said it is partnering in a $600,000 initiative with the University of Utah to research and develop a series of next-generation networking technologies supporting public safety, including broadband public emergency alerts. With Ammon’s new fiber network, residents are giving thanks for a system that allows them, among other things, to change their Internet Service Provider (ISP) simply and quickly from a sign-up portal.

We give thanks for Ammon’s innovation and their desire to give people choice.

Policy: Clever Conduit Approaches

Multiple communities have created smart conduit policies to bring connectivity to their residents. Conduit is a reinforced tube that protects and guides cables that run underground. Despite how boring conduit policy might sound, it can bring about better connectivity and ensure community control of public infrastructure. Smart conduit policy is a cornerstone for municipal networks and creating infrastructure for potential future partners. For instance, Mount Vernon, Washington, has its own open access network with eight different Internet Service Providers. The city ensures that developers install conduit in all new developments and then turn control of it over to the city. There are many more excellent models of conduit policy, just check out Lincoln, Nebraska; Centennial, Colorado; or Saint Louis Park, Minnesota.

We understand the importance of smart conduit policy and are thankful for the fact that an increasing number of communities are onboard with implementing similar measures.

So Much To Appreciate!

These are only a few of the people, places, and policies that produce better connectivity for local communities. We're thankful for them and for many others as more communities realize the value of publicly owned Internet networks. We wish you a relaxing and warm holiday and hope you have a moment to pause and consider all you have to be thankful for.


turkeys.jpg

Photo of the turkeys courtesy of Farmgirlmiriam via Pixaby.

Photo of the cornucopia courtesy of Cliparts.co.

Transcript: Community Broadband Bits Episode 228

This is episode 228 of the Community Broadband Bits Podcast. Fiber Infrastructure and Right of Way Manager David Young of Lincoln, Nebraska, describes the city's work with local Internet Service Provider, Allo Communications. Listen to this episode here. 

Listen to, or read the transcript for, episode 182 in which David Young, Mike Lang, and Steve Huggenberger discuss conduit policy in more detail.

 

David Young: Engaging your provider, engaging your community upfront and deciding what your model should be and then creating a plan and executing that plan is very important.

Lisa Gonzalez: This is episode 228 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez . A number of states have laws on the books that obstruct local governments from directly providing high quality Internet access to businesses and residents, or even partnering with local providers. Nebraska happens to be one of them. In Lincoln the community found a way to work within the confines of the law by using publicly owned conduit and creating a welcoming environment for private Internet Service Providers. As a result, Lincoln has entered into an agreement with the local provider Allo Communications who will use the conduit to build its Fiber-to-the-Home network. David Young, Lincoln's Fiber Infrastructure and Right of Way Manager talks with Chris this week. David discusses the early days of the project and how it has evolved. He also shares more information about the franchise agreement and more about the partner Lincoln chose. Be sure to take a few moment and listen to Chris' interview with David and several of his colleagues in episode 182 from last December. Now here are Chris and David Young, Lincoln, Nebraska's Fiber Infrastructure and Right of Way Manager talking about the community's conduit network and how they are capitalizing on it to bring better connectivity and technology to Lincoln.

Chris Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell. Today I'm speaking with David Young the Fiber Infrastructure and Right of Way Manager for the city of Lincoln and the public works department. Welcome back to the show.

David Young: Hi Chris, how are you?

Chris Mitchell: I'm doing well. I'm excited to speak with you again. Last time we had you on the show was the day after my son was born because he came a little bit early and I really wanted to get that interview in. I'm a little less frazzled today, although once again some traumatic events this week as we're recording the week of the election.

David Young: Yes. I did enjoy seeing your son at the Broadband Communities conference, good looking kid. It looks like he's very healthy.

Chris Mitchell: Yes. Yes, he's doing well. Now I wanted to note that since we spoke you've become a bit of a trade show hopper. You were at the NTIA in Big Sky Missoula where we served on a panel together, and then I think you knocked them dead here in Minneapolis for the Broadband Communities conference. I hope that people will feel that you're a more seasoned, more a big get for us now.

David Young: I think you're being overly kind. How much can you talk about broadband in front of a group of people who know a lot about broadband?

Chris Mitchell: I just wanted to see if I could start off by making you blush and be modest. We're going to talk about some more details that I've learned about the franchise you have with a Fiber-to-the-Home provider in your community that results from your system of conduit. I think people should start by listening to that podcast that we had done previously, it was in December of 2015. For a quick refresher, for people who aren't familiar with Lincoln, what have you all done to supercharge Internet access in the community?

David Young: Starting in 2012 the mayor and Public Works Department came up with a broadband technology plan. Basically the goal was to attract new carriers to the market and have those be very specific carriers. We wanted Tier 1, Tier 2 and Tier 3 carriers to provide competitive access to broadband for businesses. Under state law, Lincoln, or any city in Nebraska, is not allowed to provide municipal broadband. Lincoln took stock and figured out that what we could do is put in conduit system and lease out those conduit to other providers. We initially put in five miles of conduit in our downtown area as part of a revitalization project and started looking around and found 80 miles of abandoned waterline, probably 40 miles of abandoned waste water lines. We repurposed those lines into conduit systems and traffic conduit, old electric conduit, old natural gas lines, basically any pipe we could get our hands on and turned it into a conduit system that now is over 350 miles. We've leased that out to seven carriers total. When we got down to the last space we started talking about, "Gee, this is pretty successful, maybe we ought to look at Fiber-to-the-Home." We started working with different carriers and financing professionals to build a Fiber-to-the-Home with that last space in the conduit system. In December of last year we signed that agreement. Can you believe it's already been a year? It's been very exciting on our side, very busy.

Chris Mitchell: Yes, I can imagine. How much did the city spend in creating this asset?

David Young: In total about $1.2 million over four years. There was about 600,000 upfront in conduit expense and then staff time and maintenance and a $600,000 CIP, so a little bit more than about 1.2 million.

Chris Mitchell: CIP, that's Capital Improvement Program?

David Young: Yes, I'm sorry. Yes. For all those in the government, CIP is the Capital Improvement Plan, which is a six year plan that is how you allocate your capital dollars across programs like streets, water, sewer, those kind of things.

Chris Mitchell: If we ignore the new businesses that have come to town using some of this fiber that these carriers are leasing from you and if we ignore the better competitiveness of some of the businesses that were already in town, what are some of the direct benefits the city has had in terms of raising revenue from that 1.2 million that they spent?

David Young: If you're only talk pure money from the system we make $475,000 a year in lease revenue.

Chris Mitchell: That's like a three year payback then, just from that alone from today.

David Young: Right, and we've been making money since 2013. 2013 is 55,000 and then we had two more leases in 2014 and really 2015 was our banner year. Right now we're at 475, with the Allo project we're expected to be in the neighborhood of two to two point seven million a year by 2018.

Chris Mitchell: Allo is a local company, it's in Nebraska. I know in people in Colorado are familiar with it. It's incredibly well regarded by its customers from what I can tell. Tell us a little bit more about Allo, I think it's in a unique position there in Lincoln.

David Young: Allo is a Western Nebraska company. It was started by, they like to say, Nebraskans for Nebraskans. The city was meeting and doing presentations on Fiber-to-the-Home and the value of the community to various local organizations, building that community support for the program. We were meeting with financiers and talking to them and Allo was brought in and offered to competitively bid on the Fiber-to-the-Home project in Lincoln. We had another company, Bluestem, also bidding on the franchise. Bluestem is still in operation, they are building one portion of the city. We actually have three Fiber-to-the-Home projects going right now. Allo won the citywide franchise, Bluestem is doing a small neighborhood in Northeast Lincoln and then our incumbent provider, Windstream, has announced that they will upgrade 5,000 homes over the next two years in Southeast Lincoln to Fiber-to-the-Home. It's been very successful from a community planning aspect of partnering with the private sector to build this infrastructure, but it is a lot of work. It's hard to believe that we're going on our fifth year of operation.

Chris Mitchell: I want to clarify something with the franchise, which is I think sometimes people think of franchises as being exclusive. Now you talk about offering a franchise because of the limited conduit space, that's the franchise to use that conduit. A company like Bluestem, there's nothing stopping them from building to the rest of the city, they just wouldn't be able to use the same asset that Allo is using. Am I getting that correct?

David Young: You are. We had one space left in the conduit system and I will tell you, sometimes that space isn't even there. The conduit system is getting very full. It's been very successful. The last guaranteed spot in the conduit system, what we said was we wanted somebody to provide Fiber-to-the-Home services and in order to do that we wanted to franchise for that last position. Allo and Bluestem both worked with the city very closely. It took us about 90 days to come to an agreement and Allo was ultimately chosen to do the project.

Chris Mitchell: Now when you say there's no more room in the conduit, I'm assuming that over time you'll fix that, you'll be putting in extra conduit or you might be doing something differently now because it's not like this is the end of the conduit forever.

David Young: Correct. No, no, no, there's nothing to prohibit the city from putting in additional conduit, and we are. The new conduit system as we're building it out is designed for six carriers occupancy. All extensions of the conduit system that are performed by private providers are deeded over to the city and owned by the city. All the additional expansion, all expansion construction is now under the new standard of six pack of conduit system.

Chris Mitchell: We did talk about that in the previous show so if people want more detail I invite them to go review that. The transcript's on our website at muninetworks.org. Before we get into the franchise, which is where I'm really excited about some of the things that you guys are doing with that, I wanted to make sure people understand, Allo is a little bit of a unique company that has I think more of a local focus than other companies. The reason that I think it's important is because other cities that might think, "We'll build our own conduit system," you may not get the same results. I hope that they would. I hope that they'll find firms that are interested but Allo has a direct relationship to another Lincoln company, Nelnet, which I'm hoping you can tell us a little bit more about in terms of how Allo's capitalized.

David Young: Nelnet is a Nebraska based student loan provider I believe, and a bank. They have been very successful, very community focused. They were one of the entities we were working with to build community support for the Fiber-to-the-Home program. Nelnet decided they would capitalize the entire project for Allo. They really believe in the community in Lincoln, Nebraska, and broadband as an infrastructure that is designed for 21st century cities. They wanted, Nelnet, their home town to have that infrastructure. It's my understanding they have given Allo $100 million loan to build the entire city.

Chris Mitchell: Right, I think from my perspective as someone who works at the Institute for Local Self-Reliance, we love seeing that kind of local focus, local businesses investing in the community. I think the city of Lincoln has really done a great job in terms of making it easier for that to happen and really facilitating that. In particular because you have this conduit system you have a little bit more leverage in negotiating with Allo for this franchise. If you didn't have the conduit system, do you think you would have had a different discussion with Allo?

David Young: Yes. I have talked to several communities in Nebraska and a few surrounding states about this project and I think your cautionary statement is very correct. Sometimes building a conduit system isn't the right model but I do think that engaging your provider, engaging your community upfront, and deciding what your model should be and then creating a plan and executing that plan is very important. We had the last space in the conduit system, we had a very successful model and we had a ton of community support for our program. When you put those three things together, yes we had a significant asset walking into the negotiations for the Allo project. I think that was born out in the agreement. I wouldn't describe it as leverage. Any partnership, what you bring to the partnership creates value for you and what the other party brings creates their value. We were just trying to maximize value for both parties. With a very successful system already in place we had a lot of value on our side of the table.

Chris Mitchell: Because you brought that value you could then make asks of Allo. One of the things I would start with is this idea of the SSIDs, which is I think we're using that as shorthand for virtual networks and SSID is the name of a wireless network that you see when your device is trying to connect to a WiFi network. Now tell us in terms of Allo's network how these virtual networks are involved.

David Young: Of course you're going to cause me to geek out and your listeners may want to fast forward to this next section.

Chris Mitchell: I think there's other people who might be fast forwarding to this section because we don't geek out enough.

David Young: Really?

Chris Mitchell: You never know.

David Young: One of the sections of the franchise, and this is a public document, anybody can have access to it, is called service to government buildings and facilities. A standard clause in many franchises but there's one section I'd like to read it to you. "The franchisee shall provide 15 Virtual Local Area Networks, VLANs, across the entire system. The public VLAN shall be provided free of charge to the city for non-competitive use. These VLANs shall be available at every connection and termination point on the franchisee's network." To those network engineers out there listening, they will have a big smile on their face because that means I have 15 virtual networks across the entire system that Allo deploys and at every termination and connection point, meaning wireless access points, I can have access to those VLANs. I can turn up my own SSID, Lincoln public school's access, health department access, those are a few of the ones that we're working on right now. A public VLAN access for education is in our library system, combining those two together so they're available on the entire system. It is very exciting. VLANs, if you really want to go to sleep late at night look up and read about VLANs. Basically it's an addressing system for the network and we have 15 of them.

Chris Mitchell: Let's talk about one use case that I'm very excited about. I've been in some ways evangelizing for this type of approach. The intricate technology is not as important to me as the sense of what you can do with it. I like to imagine, I have a child in the public school system, they have a device likely from the public school system. This is hypothetical of course, Jackson is almost one year old. What happens is wherever he goes with that device as long as those VLANs are there, that device could just log in. If he's at a friend's house or even if maybe I'm a low income family, if then he goes out to a public access point or perhaps the neighbor's signal is there and if the neighbor has consented to this, then his device will just connect. Effectively he will be at school on his device.

David Young: With all of the school's network security policies and access to all of the public school's resources, the public library resources. It would be as if seamlessly he was inside school on the same network. Yes, that is one of the most exciting use cases for us as well.

Chris Mitchell: The nice thing is, is that if you're a parent who's really worried about your child being on the open Internet, where they might find material that they're not even seeking and would be inappropriate, the fact that even in your home you wouldn't even have to worry about managing that connection -- Because I think a lot of parents are worried that their kids are going to be more tech savvy than they are, or they're worried that they won't have it set correctly, but now even in your home own your kids is using that device behind the filters and using all those resources. To me that seems like it's a very good solution.

David Young: We were very excited about it. It was one of those conversations, it's like, "What could we do with this? What would be the actual cost of providing this?" It's not a lot because there's some version of over 9,000 VLANs on a particular network so what does providing 15 cost? Not a lot from the provider, other than willingness and creativity of thought. By building this network as a public/private partnership there was a higher level discussion than just a dollar here or a dollar there, it's what could we do together. The Virtual Network, Virtual Local Area Network, VLAN project is actually my personal favorite part of the agreement. As we go forward we're connecting all the traffic signals in the city as they're building it out. We have a new program called Green Light Lincoln, which is upgrading out entire traffic system to the 21st century. We'll be putting in a new ATMS, Advanced Traffic Management System, next year to leverage all these new connections. Over the next three years every street light in the city will be connected to this new ATMS system.

Chris Mitchell: Let me suggest that perhaps your traffic engineers haven't seen Die Hard Four. It's a little bit concerning.

David Young: Technology should be treated cautiously I agree. Die Hard Four was a wonderful movie.

Chris Mitchell: Yeah, especially the part where the car flies up to take the helicopter out, but it's not something I've seen more than ten times, I assure you.

David Young: If you think about commute times and public dollars and impacting people's daily life, if we can make the system more efficient, that impacts everybody's life every day, whether you're riding the bus or whether you're driving your own car.

Chris Mitchell: Right, you can do a prioritization for public transit. As you said if everyone spends less time in congestion you're not only saving them time, you have less pollution. There's tremendous benefits to this.

David Young: On that, and then the other piece what if we don't have to widen the road? To widen the road costs us -- A road widening project for one mile is $10 million. What if we can just upgrade the infrastructure and allow more cars to travel through faster? We don't have to spend that public dollar there, we can spend it on maintaining that road instead of widening it and impacting those properties that are adjacent to it. It is really exciting for us. It's an exciting time to be in Lincoln working with the Public Works Department. Fiber-to-the-Home, the Fiber-to-the-Business project, the Green Light Lincoln project, there's a lot of technology projects going on right now in Lincoln.

Chris Mitchell: We talked about a couple of different aspects with the franchise. Is there anything else that you see that you are doing in Lincoln working with Allo that others aren't doing where you're getting ahead of the curve?

David Young: Defining the characteristics of service is something we do in our franchise. Basically, in most franchise you provide service to the city, great but we go a little further and we say that all residents and subscribers shall be provided service under non-discriminatory rates, terms and conditions. Meaning everybody gets the same price, no more negotiating for price. We also say that there are no residential contracts for service allowed, so if you don't like the price you're receiving you're not locked into a contract. We also do not allow installation fees, except for in very unusual circumstances. You can't get charged to have it installed, there is no contract and you're paying the same rate as your neighbor. We think these are actually very good things to put in a franchise because it creates a very competitive marketplace for the carrier, they have to compete on customer service and quality of service, not on contracts and the fact that you negotiate better than your neighbor about price. I think that's important. I think that other communities should consider doing that. I'm staff for the telecom advisory board for the city and a lot of the complaints we get are, "My service isn't great from X carrier," and, "I pay too much," but there is no competition. That was the single most, the highest complaint that we received. The highest number of complaints that we received was “there's no competition.” When you're building out a new infrastructure you're going built to every home ensuring that those competitive roadblocks are not institutionalized in your franchise agreement. It was very important to us, and I think other cities could look at that.

Chris Mitchell: I want to talk briefly about Rights of Way management, which is a part of your title. I'll telegraph that you're going to be back for a show later this year, in I don't know maybe another 10 episodes, in which we are going to be talking about some small cell deployment type stuff that your approach is enabling you to do. One of the things I feel like you've done in Lincoln is that you have simplified permitting in ways that both Allo and Bluestem may find it easier to pull permits and to build than they would in my city, in St. Paul, Minnesota perhaps. Do you have any advice for communities in terms of dealing with Rights of Way?

David Young: One of the major initiatives we had in 2013 was how to make our system more business friendly. Permitting was the number one area of conversation with every carrier we talked to. We did a little reorganization project and a study inside of public works and identified every staff position that was associated with managing the Right of Way, inspections, plan review, private development, public development, and we put them into one team called the Right of Way Construction team. That team is responsible for all public facing Right of Way construction projects, meaning if it's a natural gas project, if it's the waterline project, if it's a sewer line project, if it is not a CIP project, so not a capital project, then this group manages that and works with the public to ensure a fast, safe, and affordable project. As part of that program, as part of that program, we created an electronic permit system where carriers or franchisees can upload their plan set in a very simple permit. Our goal is to have that approved in two business days or less. Sometimes we get a little bit longer than that but most of the time we get it approved in about two business days.

Chris Mitchell: One of the things you had told me before was that when it comes to dealing with these companies, many of which I think local governments are frustrated with because they don't feel like they can get enough out of those companies in return for use of the Right of Way, I think you've said those companies are much more willing to negotiate on terms that would be viewed as favorable to the community if the community can turn permits around quickly. That's the thing they really care about.

David Young: The old adage, time is money, is very important. From the time a sales person goes into a business and says, "I would like to provide you with next generation broadband," to the time the company can actually deliver that broadband, is a very sensitive topic. The faster they can do it, the better they look to their customers, and, when they go slow, they point the finger at the city and say, "We can't get through permits, blah blah blah." If you can align your interest with the company, which is the city wants that customer turn up on broadband, we want them to be a happy customer, they're our customer too. Streamlining the permit process, it takes a little insight into why you're a community, why you're a service provider in the community and what your values are as an organization. For Public Works, it was providing good customer service that means providing good customer service to our corporate clients as well, and permits is how we do that. Establishing a goal, making that goal known, putting a goal in the contract, that gives the carrier comfort, allows them to forecast a little bit better. It gives them a better level of customer service, a better sense of partnership in the agreement instead of a one-sided agreement. It has paid off with us, all of our contracts have 15 minimum day turn times permits and we try to do it in two.

Chris Mitchell: Great. I want to ask if there's any last words of wisdom you might have from your entire lifetime working on this conduit project?

David Young: You know this is the second conduit project I've worked on, getting out there and talking to the community is critical.

Chris Mitchell: Let me ask you about that for a second, because I just imagine me going out and trying to talk to people in the community about conduit. I imagine people rolling their eyes and being like, "I'm bored," or, "I'm not interested." What does that mean?

David Young: I don't talk about conduit.

Chris Mitchell: Okay.

David Young: I talk about the Internet. We open with a couple of jokes and everybody laughs and we have a good time. Then we talk about the Internet and why it's important in their lives. The access to a trillion dollar marketplace, the competitiveness with other cities to attract and retain young people, young workers. We talk about the highest paid IT jobs, network engineers, database administrators, and architects, server engineers. You don't get those jobs unless you have a good robust broadband infrastructure. People get excited about that. A lot of people still don't understand truly what the Internet is, there's a feeling in some circles that it's a nebulous thing. Why is it important to me? My presentations generally are 10 slides and 15 jokes, and then we talk about what's really important to them, how their business can leverage the Internet to make more money, be more customer-focused. I'm done in about 30 minutes and then we talk, answer questions for 30 minutes. It's a great time, people feel like you're actually talking to them about what's important to them. We don't really talk about conduit. Usually I bring a piece of conduit, a piece of fiber and pass it around the room and let everybody touch it and feel it so they get an idea. When I first started here in 2012 almost every group that I went to that I took this piece of conduit and fiber to loved it. People wanted to see it, they had never seen and heard about fiber their whole life. They'd never seen it, they'd never touched it. Giving them that tactile sensation of handing around a piece of hard conduit in your hand and somebody says, "What happens if somebody digs into it?" You bang the conduit on the table, "It's pretty tough stuff." They laugh, and it's a good time. You have these visions, and I've been to these meetings where it's long and painful and slow. It doesn't have to be that way, but it takes a lot of work building a presentation that's fun and exciting and really talks to what people care about, not what you care about. I care about conduit but most people really don't care about that, they just care about the Internet, how it impacts their life. Talking about that is the best advice I can give people because people get excited about that and then you get to ask for support, asking for help in the community to prioritize budget money for that project. It's a finite pool. People want to support projects that they like so you have to get out there and market your project to the community so that the mayor and city councilors hear from those groups, to say, "Yes, we want this. Yes, we want to support this. This is a good thing."

Chris Mitchell: I think that's a great note to end the show on. Thank you so much for coming on.

David Young: Chris thank you very much.

Lisa Gonzalez: That was Chris talking with David Young, Lincoln, Nebraska's fiber infrastructure and Right of Way manager. As the network unfolds we will bring you more news. Remember we have transcripts for this and other Community Broadband Bits podcast available at MuniNetworks.org/broadbandbits. Email us at podcast@muninetworks.org with your ideas for the show. Follow Chris on Twitter, his handle is @CommunityNets. Follow MuniNetworks.org stories on Twitter where the handle is @MuniNetworks. Subscribe to this podcast and all of the podcasts in the ILSR podcast family on iTunes, Stitcher or however else you get your podcasts. Never miss out on our original research by also subscribing to our monthly newsletter at ILSR.org. We want to thank the group mojo monkeys for their song, Bodacious, licensed through creative commons and we want to thank you for listening to episode 228 of the Community Broadband Bits podcast.

City of Lincoln Conduit Spurs FTTH, School Network Innovation - Community Broadband Bits Podcast 228

When we last spoke to people from Lincoln, Nebraska, about their innovative conduit program to improve Internet access, we focused on how they had done it - Conduits Lead to Competition, podcast 182. For this week and episode 228 of the Community Broadband Bits podcast, we focus more on the community benefits their approach has led to.

We are once again joined by David Young, Fiber Infrastructure and Right of Way Manager in the Public Works Department. We offer a shorter background about the history of the project before focusing on the franchise they developed with local ISP Allo. Allo is building citywide Fiber-to-the-Home and has agreed to provision 15 VLANs at every endpoint. We talk about what that means and implications for schools specifically.

We also touch on permitting issues for local governments and David explains his philosophy on how to speak to the community about potential projects in an engaging manner.

Read the transcript of the show here.

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

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

You can download this mp3 file directly from here. Listen to other episodes here or view all episodes in our index.

Thanks to mojo monkeys for the music, licensed using Creative Commons. The song is "Bodacious."

Broadband Communities Regional Conference This Fall In Minneapolis

"Fiber For The New Economy" will be the theme of  Broadband Communities' annual regional conference which is scheduled from Oct. 18th to 20th in Minneapolis.

The conference will explore the hottest developments in fiber and economic development with panel discussions and workshop sessions on such topics as Google Fiber, incumbent and other provider deployments, and public-private projects, according to Jim Baller, the conference’s economic development chairman.

There will also be sessions about developments in “major verticals,” including health care, education and energy, adds Baller, who is also co-founder and president of the Coalition for Local Internet Choice

The conference will focus on broadband activities and projects in primarily Minnesota, Wisconsin, Iowa, North Dakota, South Dakota, Nebraska, and Montana, as well as western Ontario and Manitoba. 

The Blandin Foundation is assisting Broadband Communities with content and conference planning, a move that means the Minnesota non-profit will have a much smaller fall event of its own, said Bernadine Joselyn, Blandin Foundation director of public policy and engagement. Blandin’s fall conference is scheduled for Sept. 13th and 14th in Duluth.  For further information, go to the event website.

Key facts on the Broadband Communities’ Conference

What: “Fiber for The New Economy”

Where: Radisson Blu Downtown Hotel, 35 S. Seventh St., Minneapolis, Minnesota  55402.

When: Oct. 18-20, 2016

Register online for the conference at the event website. Check back in the future with the main event page for more as the agenda is set.

Nebraska Network Begins To Grow In Lincoln Conduit

Approximately 30,000 businesses and residential properties in downtown Lincoln, Nebraska, will have access to gigabit Fiber-to-the-Home (FTTH) by the end of 2016.

ALLO Communications recently announced that is it ready to begin the first phase of its four-phase plan to bring better connectivity to the town of 269,000. ALLO will use the city owned network of conduit installed in 2012 to house its fiber and expand where necessary. 

The arrangement will bring a triple-play fiber network of video, voice, and data to the entire city by 2020. The minimum speed available will be 100 Megabits per second (Mbps) and a 1 gigabit per second option will also be available. Both tiers will provide symmetrical speeds so upload will be just as fast as download.

In addition to improving connectivity for residents, businesses, and anchor institutions, the network will improve public safety. When he announced the start of construction, Mayor Chris Buetler said:

“The city will also be able to utilize the fiber system to work with traffic lights and traffic flow. This will allow new smarter traffic flow, less idling cars and help eliminate pollution. This project is another example of public private partnerships and is evidence of how this process benefits the city and its people."

Lincoln is only one of several communities that understand the value of conduit for potential partnerships or for future municipal investment. To learn more about the history of the project, listen to Chris interview David Young and Mike Lang from Lincoln in episode 182 of the Community Broadband Bits podcast.

Conduits Lead to Competition - Community Broadband Bits Podcast Episode 182

As we noted in a preliminary story last week, the city of Lincoln has crafted a collection of conduits allowing greater competition for advanced telecommunications services. As we discuss this week in episode 182 of the Community Broadband Bits podcast, they have also crafted a smart policy to continue expanding the conduit system.

To better understand their impressive approach, we interviewed David Young, Fiber Infrastructure and Right of Way Manager; Mike Lang, Economic Development Aide; and Steve Huggenberger, Assistant City Attorney. We think this policy is one that many communities will want to consider and copy.

Lincoln is already seeing the benefits from the conduit system, with multiple providers using it and at least one investing in an FTTH network. Nebraska prohibits local governments and public power systems from building their own networks to connect local businesses and residents, but this approach allows the community to ensure they have a brighter, more fiber-lit future.

The transcript from this episode is available here.

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Thanks to Arne Huseby for the music, licensed using Creative Commons. The song is "Warm Duck Shuffle."

Conduit Brings Connectivity in Lincoln, Nebraska

Lincoln, Nebraska, population 269,000, is making the most of a tough situation to improve connectivity and increase telecommunications competition; the city is doing it with conduit.

The state has severe restrictions that ban communities and public power companies from offering telecommunications services. Local businesses, government facilities, and citizens must rely on the private sector to keep them connected. Faced with that limitation, Lincoln city leaders are enticing private providers with an extensive, publicly owned conduit network.

Using Tubes to Draw in Partners

In 2012, the city invested $700,000 to install a conduit system that has since grown to over 300 miles across the city. Over the past three years, Lincoln has leased conduit space to multiple providers, including Level 3 and NebraskaLink, which offer a range of services to businesses and anchor institutions. NebraskaLink provides backhaul for Lincoln's free Wi-Fi, launched in 2014.

Mayor Chris Beutler recently announced that Lincoln will be partnering with provider number six, ALLO Communications. This local company plans to be the first provider to use the conduit to build its gigabit fiber-to-the-home (FTTH) network to every home and business in Lincoln. The network is scheduled for completion in 2019. ALLO is based in Lincoln and offers telephone, Internet, and video to residents and businesses.

Smart Conduit Choices for Long Term Vision

Installing conduit is a major expense when constructing an underground fiber network. Communities which take advantage of opportunities to install conduit during excavation projects, traffic signal upgrades, and development projects, will save in the future if or when those communities decide to move ahead with fiber installation. In addition to reducing deployment costs, existing conduit reduces the number of disruptions that occur when multiple providers want to bring services to a given area.

Local coverage of Lincoln's new partnership:

 

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:

Northeast agreed to let Schneider pay for the construction in three annual payments of about $14,000 each, and it will provide 50Mbps download speeds and 15Mbps uploads for $100 a month, he said. Northeast also agreed to a $6,000 credit for any other customer “that signs up using the line I'm paying to install.” The necessary paperwork is being finished up this month.

“They said they'd have to order the fiber cables, but should be able to get me set up by the end of September of this year,” he said.

It is true that $42,000 is a sizable sum, but Schneider considers it well-spent and we are pleased to see a local business was able to work with a provider that, unlike Windstream, clearly is has some desire to serve rural businesses.

What does Norman Schneider say about ditching Windstream for this investment?

“I look at it like buying a nice new car, only instead of taking me places on the paved highway, it will finally allow me to drive the Information Superhighway at the speed limit,” he said. “Right now I feel like an Amish horse-drawn carriage when doing anything online."

Gothenburg Considering FTTH in Nebraska, Survey Responses Needed

As the "Pony Express Capital of Nebraska," Gothenburg understands the value of speed. City leaders are now investigating the possibility of bringing a FTTH network to the community. Initiative leaders are asking the town's 3,500 residents to complete a broadband survey before April 15th.

According to a recent article in the Gothenburg Times, local schools will soon be surpassing the community's current telecommunications capabilities. The school district is considering a one-to-one Chromebook initiative:

Angie Richeson, an integrated technology integration specialist and Dudley Elementary librarian, said current telecommunications infrastructure has a glass ceiling.

“We can’t get bigger or faster without changing the infrastructure,” she said. “And speed is an issue in our community.”

Community leaders also want economic development benefits that flow from a fiber network. Four Fortune 500 companies operate in Gothenberg. CenturyLink, currently providing last-mile connectivity, has no plans to upgrade.

Nathan Wyatt, Chair of the Fiber Infrastructure Committee of the Gothenburg Improvement Company (GIC) recently told the Times:

"Right now the infrastructure that exists in Gothenburg is like the dirt roads. We don't have the fastest most direct infrastructure available that would give us the fastest speeds available. And as websites get more complex. We're going to need more data and more broadband to give our residents a better experience and we also need it to recruit businesses," said Wyatt.

GIC is a coalition of local businesses working to recruit new commerce to Gothenburg. Wyatt told the Times in another article that a local provider would be ideal:

“Can you imagine calling a local number to get service on your Internet, phone and cable?” he asked.

Wyatt said the GIC doesn’t want a call center but someone that people know and recognize in the community who would service the network.

Initiative leaders have already launched an aggressive grassroots campaign, "Get Up to Speed Gothenburg." The campaign Facebook page includes pics of information sessions, quotes from business owners, and promotional videos. Wyatt told the Times:

“Now we’re going 35 mph and with fiber optics, we could go 100 miles per hour,” he said. “As a community, soon we will need to drive 1,000 mph and new infrastructure will prepare us for this reality.”

Nebraska law makes many forms of municipal ownership difficult but we hope they are able to meet their local needs and wish the state would get out of their way.

Even After Omaha, Communities Cannot Count on CenturyLink For Connectivity

CenturyLink is a massive telephone company struggling to remain relevant as we transition to mobile phones and require connections much faster than DSL delivers. Though the Omaha gigabit announcement may seem to be a monumental shift for this company, it actually is not. It is a blip on the radar - an important blip but a blip nonetheless.

The Omaha pilot does not represent a sudden change of CenturyLink strategy or capacity. Part of West Omaha has a unique history that prompted this investment. The vast majority of communities in CenturyLink territory still have no hope for upgrades beyond the basic DSL they offer today. Sadly, this already-outdated technology will only fall further behind in coming years.

First, if you missed it, CenturyLink has announced a 1 Gbps pilot project in Omaha, Nebraska. This is considerably more newsworthy that AT&T's toothless fiber-to-the-press-release response to Austin's Google Fiber.

CenturyLink is a massive corporation in a tough spot. It operates in 38 states and in each one, subscribers are fleeing slow DSL for faster networks and moving from landlines to wireless devices. CenturyLink does not have enough revenue for the upgrades most communities need.

CenturyLink deserves some praise for this gigabit trial because it recognizes the need to upgrade old networks to offer faster, more reliable connections. And it is symmetrical, offering the same upload speeds as downstream whereas the Verizon FiOS network tends to prioritize downstream at the expense of up.

For years, CenturyLink has told communities that basic DSL is just fine. We'll probably still hear that talking point in many communities from CenturyLink's government affairs staff. But this project is an admission that America needs better networks.

Why Omaha?

Qwest Choice Service

The only source we saw reporting on the special circumstances of how Omaha was chosen for this project was Telecompetitor with "CenturyLink enters the gigabit era:"

CenturyLink spokesperson Stephanie Meisse tells Telecompetitor the 48,000 customers who will be eligible for the gigabit network were previously served by pre-DOCSIS hybrid fiber coax that needed upgrading. CenturyLink is upgrading that network to Gigabit Passive Optical Network (GPON) technology to facilitate up to 1 Gig speeds. The gigabit deployment will not cover all of CenturyLink’s Omaha footprint — it will only be available, for now at least, to west Omaha, where the legacy hybrid-fiber coax network was deployed.

Before Qwest was taken over by CenturyLink, it had created a pilot project in this area called Qwest Choice TV and OnLine where it offered triple play services -- adding cable television to its DSL and telephone suite. This approach only got as far as Phoenix, Denver, and Omaha in the old Qwest areas.

To be clear, the Omaha trial is pretty limited. 48,000 households is substantial, but only represents 12% of the metro. And a specific demographic slice according to Phil Dampier at Stop the Cap:

Only around 12% of metropolitan Omaha will have access to the experimental fiber service, primarily those living in West Omaha. The network will bypass residents that live further east. The boundaries of the forthcoming fiber network are notable: West Omaha comprises mostly affluent middle and upper class professionals and is one of the wealthiest areas in the metropolitan region. Winning a right to offer service on a limited basis within Omaha is an important consideration for telecom companies like CenturyLink.

The gigabit price is pretty reasonable, in the way that only a few massive operators can make it: $80/month when bundled and $150/month for standalone.

Nebraska Seal

One unanswered question in all of this is whether the gigabit service comes with data caps, as noted by Karl Bode at Broadband Reports:

The company confirmed to me last March that they impose a 150 GB for 1.5 Mbps service plans, and a 300 GB cap for anything faster. The company also boots excessive users off of their network.

Any expectation that CenturyLink will make more investments of this nature soon are mistaken. They even candidly admit that they will have to evaluate this pilot project before considering expansion. That evaluation would happen in 2014, at the earliest. If they were to expand it, it will take another few years before they get going. In the meantime, the vast majority of CenturyLink customers will be stuck on DSL.

Let's take a look at CenturyLink's capital investment strategy. This is where we get a better sense of the companies true priorities. Thanks to Seeking Alpha, we can read the transcript of the Q4 2012 Earnings Call from mid February.

The call reveals that CenturyLink has placed a major emphasis on getting fiber to wireless towers (a cash cow) and connecting large enterprise customers with cloud services. Neither of these approaches do anything to improve residential or small business Internet access in communties. But they are a very sensible place for a firm to maximize its revenues.

Stewart Ewing, CFO, stated:

Capital expenditures are expected to range from $2.8 billion to $3 billion driven by spending in our key growth areas, data hosting will spend $325 million to $375 million, HSI [High Speed Internet] expansion and HSI capacity will spend between $350 million and $375 million, and our Fiber-to-the-tower will continue to spend about $250 million to $300 million in this area, our Prism TV with the launch of the Phoenix and one other market, we expect to spend $100 million to $150 million.

CenturyLink Map

Of the 38 states it serves, CenturyLink has announced two metro areas that are getting substantial upgrades in 2013. The first is Phoenix with a VDSL product like AT&T's U-Verse. This is faster than standard DSL but barely competitive with cable's DOCSIS 3 standard. And households even within the city get wildly different speed due to the way distance degrades the VDSL signal.

Omaha is the second -- where 12% of the metro will be upgraded to a next-generation network. If I had to put money on the next metro to get meaningful investment, it would have to be Denver because it is the third (and final) former Qwest territory community getting the television product.

CenturyLink is putting $350 million into expanding high speed Internet generally, but separately (from what we can tell) it is spending between $100-$150 million on improve Internet access in just two markets. Of those two, only 12% of Omaha is covered and the VDSL in Phoenix is barely competitive with existing cable. That should give you a sense of the scale of CenturyLink's investment dilemma: High costs and limited dollars.

Put another way, Chattanooga's EPB spent approximately $300 million over three years to deliver FTTH to 170,000 households across its 600 square mile territory. Yet another way: If CenturyLink dumped its entire 2013 capital expenditure budget into FTTH for Minneapolis and Saint Paul, it would be insufficient to bring FTTH to everyone. CenturyLink operates in 38 states.

CenturyLink just doesn't have the money to upgrade most of its communities. Will it in future years? That is a question that Phil Cusick of JPMorgan asked: "Okay. And, so we should look at CapEx as being essentially flat for the next few years?"

CFO Stewart Ewing response:

That's our thinking now. Pretty flat, we could bring it down some, cut it off a little bit depending on. It's really based on the success of these new initiatives, I mean, what we think we can drive in terms of revenue and margins going forward.

CenturyLink is not dumb or evil, it just has different priorities for investment than what communities need. The sooner local governments understand this, the better. Heck, CenturyLink itself has made this point in Minnesota:

CenturyLink Minneapolis Building

We’re a public company. We have shareholders. We have rules and commitments. If you’re smaller, the shareholders are the owners. There’s more flexibility – especially if owners/shareholders are local.

Minnesota Public Radio summed it up:

Noting that CenturyLink wants every customer it can find, Ring pointed out that the company nonetheless needs a return on investment that satisfies shareholders and meets the demands of larger commitments and fiduciary responsibilities.

The lesson is clear. Omaha is a outlier, don't count on CenturyLink to invest in better connections for your community.

And finally, I could not resist but note Julius Genachowski's final hurrah: One of the last acts of former Chairman Genachowski was to rush out a press release praising this limited pilot, though the former Chairman has ignored much more impressive citywide announcements of gigabit availability in other communities including Wilson, North Carolina; Clarksville, Tennessee; Tullahoma, Tennessee; and even a small company doing an apartment complext in Albuquerque, New Mexico: CityLink Fiber.

The federal government remains clueless in this regard, blinding by the lobbying glitz of powerful industries. The big cable and telephone companies will not solve our Internet connectivity problems. Communities are wise to depend on themselves.

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