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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."

Google Fiber Pauses - But No One Else Should

Google Fiber has finally announced its plans for the future after weeks of dramatic speculation that it will lay off half its workforce and give up on fiber-optics entirely. Google has now confirmed our expectations: they are pausing new Google Fiber cities, continuing to expand within those where they have a presence, and focusing on approaches that will offer a better return on investment in the short term.

Nothing Worth Doing Is Easy

In short, Google has found it more difficult than they anticipated to deploy rapidly and at low cost. And in discussions with various people, we think it can be summed up in this way: building fiber-optic networks is challenging and incumbents have an arsenal of dirty tricks to make it even more so, especially by slowing down access to poles.

That said, Google is not abandoning its efforts to drive better Internet access across the country. In the short term, people living in modern apartment buildings and condos will be the greatest beneficiary as Google takes the Webpass model and expands it to more cities. But those that hoped (or feared) Google would rapidly build Fiber-to-the-Home (FTTH) across the country are likely disappointed (or slightly relieved, if they happen to be big incumbent providers). 

This is a good moment to talk about the lessons learned from Google Fiber and what we think communities should be thinking about. 

Let's start by noting something we have often said: Google Fiber and its larger "access" approach have been incredibly beneficial for everyone except the big monopolists. Its investments led to far more media coverage of Internet access issues and made local leaders better understand what would be possible after we dismantle the cable broadband monopoly. 

Benoit Felton, a sharp international telecommunications analyst wrote a very good summary of Google Fiber titled Salvaging Google Fiber's Achievements. Some of my thoughts below overlap his - but his piece touches on matters I won’t address, so please check out his analysis.

I want to focus on a few key points.

This is Not a Surprise

utility-pole-1.png

Google is a private firm that has a fiduciary responsibility to maximize returns for its shareholders. More to the point, so is Alphabet, which houses Google Fiber. Google's interest in fiber was not solely pulling revenue out of the network in the same way that Comcast, AT&T, and others do. They wanted to maximize good Internet access to get more people to use the Internet more and thereby increase the value of their ad business. That is why they have been more consumer-friendly in many ways than the big cable and telephone companies. Google believes it wins even when it simply forces other providers to upgrade their networks.

The fact that they are now focused on doing that in a different way or changing the way they are driving network upgrades should not be surprising. Fiber-optic investments in single-family home neighborhoods can take many years to break even whereas using a hybrid fixed wireless and fiber strategy to target the tens of millions of people living in apartments and condos is likely to break even much quicker. 

That said, if One Touch Make-Ready policies succeed in Louisville and Nashville, I think we will see more Google Fiber investment in FTTH.

But Google is fundamentally a private firm focused on its shareholder value. And as such, it does not have the right incentives to deploy what has become essential infrastructure. Many of us have objected to the market-driven approach that tends to leave low-income areas behind. Nevertheless, Verizon and AT&T have left far more neighborhoods behind than Google. We believe universal access will be more difficult after market-driven approaches skim the cream out of our cities, leaving public funds to ensure everyone has access.

Fiber Remains A Good Municipal Investment

There is no wireless technology today that will cost-effectively deliver a high capacity connection to single-family homes that gives a deployer a technological advantage over modern cable systems (yes, we need better networks than cable networks offer). Google is not abandoning fiber in favor of wireless. It is changing its focus from near-citywide deployments to buildings with many tenants, where it can use both fiber and fixed wireless approaches to deliver service quickly. 

If anything, Google Fiber's change in focus reinforces the importance of smart municipal investments. That can mean a range of things, from Chattanooga or Lafayette approaches to Lincoln's conduit model to Ammon's software-defined network open access approach.

This is especially true in light of 5G wireless, which is still far on the horizon and will require fiber deep into neighborhoods - more fiber than the wireless carriers can easily deploy. Cities that make it easy for the wireless carriers to deploy small cells and connect it with affordable fiber will get these technologies faster and better than those that just wait for the private sector to do everything. Stay tuned to Broadband Bits for an upcoming podcast on how Lincoln has a brilliant model for that.

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Waiting Can Only Hurt You

Whether a community intends to offer services directly or simply to encourage more independent service providers, it is now clear that they need to take action. The "Google Lottery" is temporarily suspended. Get busy finding an approach that fits your needs and challenges.

This is especially true for cities that have real potential to meet their needs with smart local investments but have been waiting and waiting at the altar for Google - ahem, Palo Alto, Portland, and others. Stop dawdling and get serious. You have the capacity to do something. Get started.

Google may resume new FTTH build outs, and when it does - it will undoubtedly look more favorably on communities that have dark fiber, conduit, and other assets ready for them. And if Google remains paused much longer, then you will have created assets to use for your own deployment or for attracting a different partner. 

Speaking of a different partner, Elliot Noss of Ting reminded me that Google can play around with autonomous cars and artificial intelligence in a big way today. Since they launched fiber, the opportunity cost of using their capital has changed significantly. Compared to the potential returns for deploying fiber to single family homes, A.I., and the potential to control all future vehicular movement seems more lucrative.

Once again paraphrasing Elliot, one of the core talents of an ISP should be dealing with people - from installers to customer service. This is not a core area for Google. Google's engineers have done a stunning job creating their technologies - especially the DVR system. But being a competitive ISP is not just technology - it is interacting with your subscribers.

While Google may be in a pause, Ting is excited to keep moving on. Travis Carter of US Internet in Minneapolis can't wait to lay more fiber next year (winter is about to slow his deployment up here); they see nothing but potential in coming years.

Wireless Is Not Killing Fiber

I want to be especially clear. Companies like AT&T and Verizon love stories about how fiber is too expensive or uneconomic. They have a customer base to protect from competition. They are thrilled when they can scare potential investors in fiber networks.

5G is not magic and won't meet all of our needs. When I started working in this industry 10 years ago, I was told that Wi-Fi obviated the need for fiber. WRONG. But then, I was told that fiber wasn't necessary because WiMax would meet all our needs. WRONG. And then it didn't take long before fiber was supposedly unnecessary because 4G LTE was going to do everything except solve world hunger. WRONG. 4G remains a complement to fiber, not a substitute.

When I talk to people that have only 4G and not a wired service in their homes, they usually complain - whether it is the cost, reliability, or some other factor. And when you look closer at 5G, it is clear that FTTH continues to be a smart investment. And when building a FTTH network, you have an opportunity to lease fiber to those deploying 5G, another revenue source.

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Google is not scared of the possibility of 5G making fiber uneconomic. Google is frustrated at the pace of deployment because both pole owners and the networks already attached to utility poles can dramatically slow critical access to those poles by using every day of their allotted time to make a pole ready for a new attacher. 

This is not about city permitting - we have once again seen that even when cities bend over backwards to ease deployment access, it is the incumbent providers that continue to be the biggest barriers to new investment (this reinforces a CTC report that communities could reduce outside plant costs by 8 percent at most). There is just no way getting around the mismatch between private sector business models and the need for critical infrastructure. It is capital-intensive and offers a slow return, especially when done correctly.

The Private Sector Needs You

The private sector, Google included, simply cannot solve this problem alone but cities can change the calculus. Phil Dampier agrees. Blair Levin has been making this case for years - see the Next Generation Network Connectivity Handbook [pdf], for instance. But take care with those that are too focused on private investment. Cities need to be very careful in partnerships and should not rely too much on the private sector - our report offers suggestions for how to get the right balance.

Google is taking a pause, but it should be a kick in the pants for the rest of us. Time to get busy building the infrastructure of tomorrow - because some cities already have it today and we don't want to let them have all the fun.

Fresno Looking For Partners: RFQ Responses Due Nov. 30th

Fresno, California, is looking for one or more partners to bring Gigabit connectivity to the entire community. City leaders recently released a Request for Qualifications (RFQ) to send out the call for interested entities. Letters of interest are due on November 14th and statements of qualifications are due by November 30th.

Leaving No One Behind

According to the RFQ, the community is experiencing growth in the tech sector and want to support the tide by improving Internet infrastructure throughout the community. In addition to serving new businesses for economic development, the network will connect community anchor institutions such as schools, hospitals, and libraries. 

As part of their goals, Fresno states explicitly that they want to ensure low-income families and individuals will be able to afford high-quality Internet access. In an article in the Fresno Bee, city leaders sate that they envision rates for some residents at around $10 per month for either a wired or fixed wireless connection.

Using Existing Assets

Chief Information Officer Bryon Horn says that the city has approximately 90 miles of fiber in place in the northeast, northwest, and southeast regions of town for traffic control. The southwest area of town, however, is plagued by gaps in service. In the RFQ, the city suggests that any solution could use and expand on the existing publicly owned fiber. An increasing number of communities are taking advantage of the extra capacity available in fiber installed for traffic light synchronization. Aurora, Illinois, used its traffic fiber as a starting point to build out OnLight Aurora. More recently, Centennial, Colorado, is encompassing its traffic-related fiber-optic network into a project that will allow the city to partner with Ting for Gigabit connectivity to the community.

Fresno also has dig once policies in place and 104 miles of telecommunications conduit that can be used for the project, which will facilitate any project.

Fresno

Approximately 520,000 people live in Fresno, and city leaders estimate the population will grow by about 7 percent within the next five years. It is more than 112 square miles in the San Joaquin Valley where there is a $26 billion agricultural industry. Even though much of our country's food grows there, it is also one of America’s fastest growing tech job centers. Both sectors of the economy are increasingly dependent on high-speed connectivity.

Along with large employers, the school district serves 73,000 students, more than 11,000 employees, in 97 schools. They recently launched a technology initiative. Higher education in Fresno supports more than 80,000 students at California State University and four other community college and universities.

One Of Several Investments

According to the RFQ, the proposed investment in better connectivity it one of several community improvements. They are also developing several public transportation projects and a water infrastructure project to make the city “drought-proof.”

Read the RFQ at the city website.

Transcript: Community Broadband Bits Episode 222

This is episode 222 of the Community Broadband Bits podcast. Centennial, Colorado's Fiber Director Tim Scott joins the show to discuss conduit policy, dark fiber strategy, and Ting. Listen to this episode here.

Tim Scott: How do we create a more competitive environment and enable new entrants to look at the market and put together products and services, leveraging the city’s backbone that can create this new, competitive, compelling environment in Centennial?

Lisa Gonzalez: This is episode 222 of the Community Broadband Bits podcast from the Institute for Local Self-Reliance. I'm Lisa Gonzalez. In 2013, Centennial, Colorado voters chose overwhelmingly to opt out of the state's law that restricts local telecommunications authority. Since then, they've steadily advanced toward a plan to use their publicly owned fiber to bring better connectivity to the community. Last month, Internet service provider, Ting, announced that it would be partnering with Centennial to bring gigabit Internet service access via the city's publicly owned fiber-optic network. Tim Scott, the city's director of fiber infrastructure, joins Chris today to talk about Centennial's voyage from a new Denver suburb to a city that has the fiber to draw in a growing provider like Ting. He explains what the city has created and how, what providers are looking for, and offers more information about the new partnership. Now here are Chris and Tim Scott, director of fiber infrastructure from the city of Centennial, Colorado.

Christopher Mitchell: Welcome to another edition of the Community Broadband Bits podcast. I'm Chris Mitchell. Today I'm speaking with Tim Scott, the director of fiber infrastructure for the city of Centennial, Colorado. Welcome to the show.

Tim Scott: Morning, Chris. Thanks for inviting me.

Christopher Mitchell: I got it right, Tim Scott?

Tim Scott: Yeah, you did. You got it right. Good job.

Christopher Mitchell: The community of Centennial, I've actually been down in that area, in the Denver metro area. Can you tell us a little bit about it?

Tim Scott: As you say, it's really considered a suburb nearly of Denver. We're right down on the southeast corner of the Denver metro area. What's kind of interesting about the city of Centennial, a lot of people don't know this, it's a very new city. We're only 15 years old. We were incorporated in February 7th, I believe, 2001. It's a very new city that was pieced together in a lot of what was unincorporated Arapahoe County land. We're 14 miles wide across. We often refer to the city as shaped a bit like a dumbbell. We've got this larger eastern residential area, which would be one of the dumbbells, and then it sort of narrows along the middle where we kind of have more of our central business district, or CBD area, and then it widens out again into more of a dumbbell shape on our western side of the city. 14 miles across and a population, I believe, of 107,000.

Christopher Mitchell: I think that shape actually plays into a lot of our discussion in terms of what Centennial's done with fiber-optics. We'll talk in a minute about the partnership that you're going to be engaging in where Ting is going to be leasing some lines from you. First let's talk about what Centennial has. What has Centennial built over the years?

Tim Scott: The city really has been on a path of really trying to figure out how fiber can continue to develop the city and keep it ahead, really, of a very competitive growing Denver metro area and sort of looking at ways to use fiber as a leading edge tool that continues to keep the city at the forefront, whether it's from an economic development perspective, for creativity, for our own city services. This has really been a path that the city's been on probably for, I would say, four years. It's probably a good indicator hopefully to some listeners of really how long it can take to figure all these pieces out. I know, Chris, that you've met many of their council members that attended some of the broadband shows over the years as they really tried to put these different pieces together. During those years, they took some really important steps, I think, to sort of get the city prepared ultimately for a broader fiber initiative with partnerships, potentially. Across those years, they continue to invest in some city owned fiber. We have about 50 miles today of fiber along most of the major roads through the city. They primarily are used— it’s city owned fiber, what we call ITS for intelligent traffic signaling. It really doesn't do anything more than that. That in itself has really served a purpose because the city through our Public Works Department built, deployed, managed contractors to deploy that fiber— some of that knowledge is internal within the city now, which is great. Probably most importantly really what it required was the building and the ownership of existing city conduit that that fiber would reside in. I think what we learned as a city is that ownership of that physical asset is so important and in this case ownership of as much as our own city conduit was really important because ultimately that's what's going to be leveraged in our next phase of our fiber build out.

Christopher Mitchell: I think the shape of the city actually really works to your advantage because if I understand it correctly, you were able with your intelligent traffic signaling to put in conduit and fiber along a few major corridors and yet be very close to the vast majority of the premises in the community.

Tim Scott: Yeah, that's correct. If we look at 2013, which is really our starting asset for our fiber master plan, which we'll talk about, which is really our 2016 initiative, if we look at our assets in 2013, where we had fiber in conduit, it really isn't that different from where we're going to invest and build new fiber in 2016 going forward, it's just that's called a different type of fiber with a different purpose, and that's going to be for serving our community anchor institutions and for serving ultimately businesses and residents. You're right, even in 2013, the city already had a strong footprint of existing city owned conduit and some existing fiber serving our traffic signaling, would run east to west across the city down those main roads, main lines, as you said really passes some significant residential populations and again with our coming down the core of that central business district in the middle of that dumbbell, passing a lot of business in our city as well that ultimately can be served with fiber.

Christopher Mitchell: Tim, I'm curious, I think a lot of people just sort of think, well if you had fiber to a lot of these places in 2013, why do you have to do something different now to achieve different ends, rather than the original ITS, intelligent traffic signaling ends?

Tim Scott: It's a great question, Chris. It's something I think that the city probably took a good 12, maybe even 24 months to really understand and get their head around completely that this strategy for fiber from a broader perspective needed to be a little different. Around 2013, the city had deployed fiber in typically a let's call it a point to point fashion, where the pure purpose of that fiber was to go from really one street crossing to another street crossing to serve traffic lights. That was a good purpose and why it was built at that time, but obviously when it was built at that time from a fiber density perspective, it was also low count fiber, like everything from 12 fibers up to 40 type fibers, but what we would call low density fiber. Also perhaps most importantly, I always feel a lot of communities tend to forget this, is it's really the accessibility to the fiber that becomes important. It's not just where the fiber goes, but it's where the handholds are and the future splice points are that ultimately that stretch fiber could be utilized to be used from an expansion perspective. Where do you break into that fiber to create a lateral that can connect to an anchor institution, a business, or a resident? It was a great starting point because it was, again, conduit that the city went through the process of either building and owning itself or getting it co-built with a carrier that may have been building some conduit in the city too, and then being able to use that existing conduit to serve a purpose in 2013, but again, revisit that conduit now in 2016 and say, "Okay, the best way for us would be to build a new, what we would call, carrier grade backbone infrastructure," but again using that existing conduit, a lot of it, that was built in 2013 and prior to 2013 to run this high count. In the case of the city of Centennial's backbone, you're going from low strand fiber to a 432 fiber backbone. That is a lot of fiber. A lot of people fall off their chairs when they say, "The city's building a 432 fiber backbone," so absolutely the city's backbone that will be deployed all around the city and in many of the same locations where we had ITS fiber and city owned conduit, except now it'll be probably 65 plus miles of new fiber backbone, 432 fiber count, the latest and greatest from a spec perspective in terms of fiber that's on the market today. Again, with all the records that we think are really important to accompany that. You've got to be able to prove conduit ownership. You've got to be able to create the right splice points and the right accessibility to the backbone fiber, and ultimately then back that up with the right level of documentation that shows the correct as-built exactly where it is, exactly how it's accessible. It's really building it with a purpose to serve as a facilitator for the private sector. I think that's very different than building fiber that has a single purpose, which in our case was ITS, and then building fiber as a backbone that really can be leveraged ultimately someday by the private sector who could come and use it, but has a higher level of expectation in terms of documentation, accessibility, support, how it was built, all that complex stuff that ultimately becomes important. We're going through all that complex stuff to build it exactly in the right way so it could be considered carrier grade.

Christopher Mitchell: There's a couple of questions that sort of spring to mind, and one is when you say you're reusing the conduit, did you have enough space to just put additional fiber in there or do you have to pull out those original 40-some strands?

Tim Scott: Yeah, good question. We have a lot of conduit conversations because actually what's quite interesting with this project is that we're 100% underground. It's all city owned conduit or ultimately what will be city owned conduit. In a lot of places, that's two inch conduit. Where we have two inch conduit and we have city fiber already there, we may build, as we go through this build process, another parallel conduit that will sit right beside it that will serve the 432. We're really going through that process right now with what we're calling our design engineering firm or our owner's project manager that really looks exactly what where do we have conduit, where do we have clean, clear two inch conduit that we can use for the new 432 backbone. Great. Where do we have existing conduit where it's clean and it's a quarter inch conduit, and where do we have existing city conduit where it's maybe two inch but there's going to be some fiber already in there? The plan right now, and of course this is all subjective to ultimately final budgets and stuff, but the plan right now is we really don't want to have to cut and pull out any fiber and then replace it with new backbone. Our preference would be to ensure that the city has lots of available city conduit, both for this project but even for the future too. I mean, if we can put in three two inch conduits in some locations, we'll look to do that because we believe that's still an asset and 10, 20 years down that could be very valuable.

Christopher Mitchell: Now, let's get onto what many people might consider the big news, which is that we've just learned that Ting, a company that's already working in Charlottesville, Virginia, Westminster, Maryland, we've talked about many times. They've also announced Holly Springs, North Carolina, and Sandpoint. And their fifth community they're going to be working with is Centennial, which I think is pretty tremendous, given that everyone seems to love their services. I've long been a wireless customer of theirs and I'm very happy. What's your relationship with Ting in terms of how they're interacting with you?

Tim Scott: Two weeks ago Ting broke the news that they were coming to Centennial, Colorado, which I think as you mentioned is their fifth planned community project. We're very excited about Ting. Ting is a company that certainly I've followed over the last couple of years as they've worked really diligently to get their first couple of projects on the eastern seaboard off the ground. I've had the pleasure of visiting those communities and really understanding both what Ting does locally, but also probably even more importantly is their engagement with the local community. Ting followed an RFI process that the city had, expressed their interest in leveraging this new, to be built, carrier grade 432 backbone, to really come and enter what I think is a wonderful market for them. It's an extremely fast growing area of the country. It's an extremely fast growing area of the Denver metro market. We have actually, in Centennial, we have the highest Internet adoption rate in the country of 96%. We believe we've got a very educated, very connected community. We think it's a great opportunity for a fiber player to come to town, leverage the city's backbone that gives that pervasive coverage across the city, and ultimately invest their dollars to bring the backbone to the premise, whether it's businesses, whether it's residential. One of the things you mentioned I think that's been a real standout has been what we've learned about their customer service. You've experienced that obviously on the wireless side, but it appears to be very similar on the wired side, the fiber side. We're excited about that. Obviously we're excited about their products and their future services, which hopefully they'll be bringing out as well to markets like Centennial. I look at it as a real game changer for the city. I really think that this presence of Ting will really transform the city of Centennial. I'm excited to see their white and blue trucks and vans drive around Centennial just like I saw them in Charlottesville, Virginia.

Christopher Mitchell: I'm curious, are they actually going to be leasing your fiber then or your conduit or will it vary depending on location? Is that all worked out yet?

Tim Scott: No, it's not all worked out yet. Basically the announcement is I think confirmation that they're in the what I would call research stage. They've already done their preliminary research. They're very happy about the demographics and obviously what they consider is a great market opportunity in Centennial. Now they dropped down a layer and they start to figure out, okay, where exactly should we target first? Which residential areas of the city make sense? What about the businesses? How do we do that? Obviously they have a large step up to create in terms of creating a local team in the Colorado market, something they'll be starting very soon. There's a lot of actions that they have to take. Then really their relationship with the city at this point is ultimately they will execute some sort of agreement or lease of fiber on the city's backbone. I think that will obviously be dictated a little bit about some of the decisions they have to make about where they will go first, which areas of the city, which residential areas of the city. The business relationship, if you want to call it that, is basically they're taking an IRU for fiber lease from the city of Centennial, which would absolutely be obviously available to the next partner that might want to take an IRU on the city's backbone.

Christopher Mitchell: That's actually something I wanted to ask you about. With 432 fiber strands, it seems like you have plenty of capacity then for any other ISPs that might want to also invest in Centennial.

Tim Scott: Yeah, we do. I mean, we are building deliberately a backbone that has a lot of capacity, both for opportunities for private carriers to lease dark fiber capacity on the backbone, but also for our community anchor institution use, public safety use for many agencies across the city. The opportunity is there for other carriers to lease fiber on our backbone and make that bet of investing to create fiber to the premise opportunities. I think a lot of people think about it and I think a lot of people see those opportunities, but actually taking the steps that Ting have done to create the brand around it, create the local teams around it, have the product services and customer support to back it up, those are different. Those are different steps. We're very pleased with the partnership. We're very pleased with where we are with Ting and we look forward to the decisions that they make over the next few months, which will really set up what they do in 2017 and beyond.

Christopher Mitchell: Now, this is a key moment in the podcast that I usually come up against, and that is we could end it right now and have a nice short podcast, but there's another question that's burning in my head. You're a unique person that can help answer it, I think. You have a pretty long background in dealing with various open solutions, both dark and lit open access approaches. Your background, you've worked previously with Axia, which is an open access provider working in the state of Massachusetts. I'm really curious if you can just – Some of our other cities who aren't Centennial who are trying to figure out how to think about their different options in terms of a dark versus a lit strategy for encouraging open competition in the community. What thoughts can you give them?

Tim Scott: Yeah, and it's a great question and I think one, Chris, that we've seen tossed about for years at various broadband and community fiber forums. I think the way that I would answer this is, first of all, just talking about what the city of Centennial did. The city of Centennial really tried to figure this out for a number of years. Went through the process, you've got to sit in a room and have everybody say, "Okay, we can either, at one end of the scale, do nothing or, at the other end of the scale, we can do everything," meaning that we can build a network, fiber, electronics, offer services, move into the whole competitive environment. At one end of the scale it's obviously $0, do nothing, and the other end of the scale it could be $150 million plus and become this new entity. I really believe that in all situations, depending on the community, there's a model for each. In the case of Centennial, it was not really to pick a middle ground or anything, but the right answer because of our drivers which was we didn't have a significant fiber in our community from a city perspective that we could really leverage. We had a competitive environment in the sense that we have Comcast and CenturyLink, but no fiber products being developed or being brought into the community from a fiber to the premise perspective. We had small, small numbers of fiber where the largest enterprises could get served with basically expensive fiber. We really felt, from an economic development perspective, the focus was on how do we create a backbone that can create a more competitive environment and enable new entrants to look at the market and put together products and services, leveraging the city's backbone that can create this new competitive, compelling environment in Centennial? Again, that just takes a lot of time to go through the process as a team to figure that out, to get through the right political support behind it, to educate everybody that's on council, not just the wonderful three members that we had on our fiber subcommittee who are all three sitting council members as well. It just takes time to go through that. In our case, the answer to what Centennial should provide became very evident through a lot of different workshops. It became very evident of what we felt we needed to do to change those dynamics. I see other communities that maybe are more rural and they really, truly believe that they have to move into what I would call the business. Maybe they only have one carrier serving their community and maybe they're not very focused on doing a great job. Obviously they need to go further on that scale towards that number that I talked about, that $150 million number, where they need to not just build fiber, but they might need to light up the electronics and even provide— compelling at least Internet services.

Christopher Mitchell: What I'm curious in particular is for a community that is really set on providing services indirectly, really focusing on wholesale services or wanting to encourage that, I'm curious about the merits of a dark versus a lit strategy. The city's basically already saying, "We're not going to provide services ourselves."

Tim Scott: Yeah. I feel like in our case we chose that dark fiber strategy because we see a line in the sand between being a provider of dark fiber and the complexity that's associated with making that business work and making those prices and products compelling for the marketplace. Then on the other side of that line, the complexity of moving into wholesale lit services is just a different ballgame. You've got to have a different type of team and you've got to have different capital and you've got to have different levels of expertise and different levels of support, and that option which would be wholesale lit services. Again, for us, it just became apparent through our process that creating a dark fiber backbone that was citywide, that has been built to a carrier grid standard that you can prove to any private parties that you sit down, whether it's the biggest guy in the country or the smallest guy. You can say, "Here's how it was built. Here's the as-builts. Here's the quality. Here's the data centers and carrier hotels that the backbone connects to." That becomes a very compelling proposition. There's other things that are important too, Chris. To ensure that dark fiber proposition works, the city has got to be organized. The city's got to have this permanent fix. It's got to have the right of ways fixed. All that stuff, what Google looked towards cities to provide, a lot of that work has gone on in the background as well over the last couple of years as the city also got organized to ensure that we could really be very responsive as it related to our codes and permitting and all those other requirements.

Christopher Mitchell: Great. One last follow up question, which is you mentioned this a couple of times and I think you're probably someone who could define it well, when you talk about carrier grade, I assume that's in contrast to enterprise grade, which is not a Star Trek reference. Aside from all the paperwork, which I find very interesting to prove that it's not going to cause any headaches for someone who's using it in the future, what are some of the other things that a potential ISP would be looking for in terms of something that's carrier grade?

Tim Scott: Yeah. It seems to get thrown around, but I think you got to be able to demonstrate to a private carrier that this backbone fiber that ultimately they're going to use and really treat as their asset under an IRU, you have to be able to demonstrate that it's been built correctly, with the right as-builts, that it's been tested correctly with the right fiber test results, such as OTDR testing, which they would, I assume, expect to see and many of them will, and that it's ultimately the right type of fiber in terms of its specifications. Some of those ... Those three elements I would certainly say all factor into something being termed carrier grade. Then the other piece that we touched on earlier that I didn't want to forget about is accessibility. There's no point in having the latest and greatest fiber backbone from point A to point B if you can't get at it in between. It's the getting at it in between that creates the valuable laterals that connect to the residential communities or connects to the businesses or connects to anchor institutions. It's combining, I feel, all the factors, right, and into that definition of what's carrier grade. Unfortunately, I've sat down over the years with many communities that might have the fiber asset but really struggle to explain and demonstrate to a private party that it's carrier grade because they don't have the documentation or they don't have the test results or they can't prove that it connects to the right points, A and B or A and Z locations, or that it's accessible in between and they've got the documentation to demonstrate where it's accessible in between. All those factors I feel melt into that broad definition of carrier grade.

Christopher Mitchell: Thank you for coming on the show to tell us so much more about what's happening in Centennial. I think also almost uniquely in this history of this show at least to really give us the nuts and bolts between the differences between building a network out for intelligent traffic signaling and how to attract a brand new carrier. It's been great.

Tim Scott: Thanks, Chris. Thanks a lot for having me on the show. I look forward to seeing you in Colorado sometime soon.

Lisa Gonzalez: Thank you for listening to episode 222 of the Community Broadband Bits podcast. Again, that was Tim Scott, director of fiber infrastructure from Centennial, Colorado. Read more about Centennial at MuniNetworks.org. 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's stories on Twitter, where the handle is @MuniNetworks. Thanks to the group, mojo monkeys, for their song “Bodacious,” licensed through Creative Commons, and thanks for listening.

Carrier-Grade Fiber in Centennial, Colorado - Community Broadband Bits Podcast 222

Located in the Denver metro region and shaped like a barbell, Centennial has effectively used dig once policies to build conduit and fiber assets that have attracted Ting to the community. Tim Scott is the Director of Fiber Infrastructure for the city and joins us on Community Broadband Bits podcast episode 222.

Centennial took advantage of a project installing fiber for Intelligent Transportation Signaling. But just putting in more fiber was not sufficient to establish a carrier-grade network that ISPs would want to use. Tim explains what they had to do to attract ISP interest.

Centennial's shape is very conducive to their strategy (which may be a tautology - they chose that strategy because it works for them). At any rate, their arterial corridors run quite close to the majority of premises and therefore a well-designed fiber backbone network is more attractive in that community than others.

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 29 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."

Eugene Encouraged: Expanding Fiber Project

For the past year, Eugene has worked on a pilot project to bring high-quality connectivity to businesses in its downtown core. Now that community leaders and businesses have seen how a publicly owned network can help revitalize the city’s commercial center, they want to expand it.

The Proof Is In The Pilot

The project is a collaboration between the city of Eugene, the Lane Council of Governments (LCOG), and the Eugene Water and Electric Board (EWEB). As we reported last year, each entity contributed to the project. EWEB owns the infrastructure and uses its electrical conduit for fiber-optic cable, reducing the cost of deployment. EWEB also has the expertise to complete the installation, as well as manage and operate the infrastructure. They lease dark fiber to private Internet service providers (ISPs) to encourage competition over the shared public infrastructure. 

The pilot project brought Gigabit (1,000 Megabits per second) connectivity to four buildings in the pilot area. Vacancy rate for those four building is at zero while typical vacancy rate in Eugene is 12 percent. Matt Sayre of the Technology Association of Oregon (TAO) notes that speeds in one of the buildings, the Broadway Commerce Center, increased by 567 250 percent while costs dropped by 60 40 percent. TAO joined the other pilot project partners in 2015.

The Search For Funding

The expanded project will cost approximately $4 million to complete. In June, the City Council approved a measure to make the project eligible for Urban Renewal Funds. Urban Renewal is another label for what is also known as Tax Increment Financing (TIF), which has been used in other places for fiber infrastructure. Bozeman, Montana; Valparaiso, Indiana; and Rockport, Maine, all used Urban Renewal or TIF to help finance their builds.

Eugene provides a helpful explanation for Urban Renewal on their website; they describe it in three steps:

Step 1 - The District is created . The value of ALL the properties inside the district is calculated. This becomes the frozen base amount of property tax for the area.

Step 2 - Redevelopment and Improvements. Public and private investments generate improvements. As property values increase, all new tax revenue above the frozen base amount go to the urban renewal fund to reinvest in the area.

Step 3 - District is retired. Once the City Council is finished investing in the area and the debt of the district has been repaid, the district is retired. Property taxes are distributed among the taxing districts.

Eugene offers more information about Urban Renewal and how the city applies it to help revitalize strugging areas. They also provide this illustration:

TIF-illustration.jpg

The city will also apply for federal Economic Development Assistance Program Investment grant funds from the U.S. Department of Commerce. The grant they pursue requires a 50 percent match which will include Urban Renewal Funds and the value of EWEB’s existing electrical infrastructure. In July, Eugene and its partners submitted a pre-application and the EDA invited them to submit a full application; they hope to obtain approximately $2.1 million.

Residents, Too!

Businesses are not the only ones expected to benefit form the community investment. The expanded project area also includes several multi-dwelling units (MDUs), and the network will help improve the city’s free Wi-Fi:

Anne Fifield with the city of Eugene says three low-income housing projects are in the service area, and she has been in communication with the building managers. One of the goals of Eugene’s broadband plan, she says, is to “bridge the digital divide” and bring internet access to low-income households. An added bonus, she says, is users of the city’s free wifi should eventually see an increase in speeds.

If all goes according to schedule, the project will be completed in late 2017 or early 2018.

Virginia's Roanoke Valley Opens Fiber Access - Community Broadband Bits Podcast 221

Having few options for high-quality telecommunications service, Virginia's Roanoke Valley formed a broadband authority and is building an open access fiber-optic network with different options for ISPs to plug-in.

In addition to being our guest on Community Broadband Bits episode 221, Frank Smith is the Roanoke Valley Broadband Authority CEO and President. We discuss their various options for ISPs to use their infrastructure and the various services their network is providing, including access to conduit and dark fiber leases. We also discuss why they formed a state authority to build their carrier-grade network.

Though they have had some pushback from incumbents - something Frank seems unphased by in calling the Authority "the new kid on the block" - they have built local support by building relationships with local organizations like Blue Ridge PBS.

Read all of our Roanoke Valley Broadband Authority coverage here.

Read the transcript of the episode here.

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

This show is 29 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."

Saint Louis Park is Prepared for the Fiber Future - Community Broadband Bits Podcast 219

Saint Louis Park, a compact community along the west side of Minneapolis, has built an impressive fiber network, a conduit system, and several deals with developers to ensure new apartment buildings will allow their tenants to choose among high speed Internet access providers. Chief Information Office Clint Pires joins me for Community Broadband Bits podcast 219.

In one of our longest episodes, we discuss how Saint Louis Park started by partnering with other key entities to start its own fiber network, connecting key anchor institutions. Years later, it partnered with a firm for citywide solar-powered Wi-Fi but that partner failed to perform, leaving the community a bit disheartened, but in no way cowed.

They continued to place conduit in the ground wherever possible and began striking deals with ISPs and landlords that began using the fiber and conduit to improve access for local businesses and residents. And they so impressed our previous podcast guest Travis Carter of US Internet, that he suggested we interview them for this show.

Clint Pires has learned many lessons over the years and now we hope other communities will take his wisdom to heart. Well-managed communities can make smart investments that will save taxpayer dollars and drive investment in better networks.

Read the transcript of the episode here.

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

This show is 40 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 Roller Genoa for the music, licensed using Creative Commons. The song is "Safe and Warm in Hunter's Arms."