Chattanooga Launches Nations Largest Public Full Fiber Network
On Tuesday, September 15, EPB, the public power utility serving Chattanooga and nearby communities in Tennessee, rolled out fully fiber-powered triple-play services to 17,000, a number expected to grow by July 2010, when services will be available to some 100,000 people and businesses. It will take three years before all 160,000 potential subscribers are passed.
Chattanooga has had a relatively rough time creating the network due to the litigious nature of its incumbents, who have filed 4 lawsuits to stop the project only to have each of them dismissed by the courts. (This is a predictable outcome, many of these companies file frivolous lawsuits to intimidate communities with lost time and legal fees - leading to a no-lose situation for companies that invest more in lawyers than in the networks communities need in the modern economy.)
Prices and Options
All broadband speeds are symmetrical; prices by month
| Option | Price |
|---|---|
| 15 Mbps | $57.99 |
| 20 Mbps | $69.99 |
| 50 Mbps | $174.99 |
| 15 Mbps and basic phone | $68.83 |
| 15 Mbps / basic phone / basic cable | $92.97 |
| 15 Mbps/ phone & 120 min long distance / 77 Channels | $117.24 |
Caveats: an extra $5.99 a month for HD Capability on the TV, but even the basic phone package comes with caller ID and 3-way calling
Muni Projects Lead in Europe
Muniwireless.com recently noted "Eastern and Northern Europe driving broadband and FTTH growth." Of particular interest to us is the crucial role of public investments in creating that growth:
Roland Montagne also says that competition has been driving new FTTH/FTTB projects. He mentioned that more that 56% of the FTTH/B projects were conducted by public entities such as municipalities and utilities. Incumbents originated only 10.8% of the projects.If we want to see competition in telecommunications, we need public ownership of networks. Private networks tend toward monopoly markets, communities should build a network to ensure competition, especially the robust competition that can only come with open access full fiber-optic networks.
Johnson City, Tennessee, Considers Network
Johnson City, Tennessee, is considering the pros and cons of expanding the fiber network its public electrical utility is installing to connect substations in order to improve grid reliability. They may follow the example of many other Tennessee public utilities that have offered broadband services to residents, creating competition in a sector sorely needing it.
They will need to speed the process along if they are going to get any stimulus money - many communities have been considering these options for longer and are ready with plans.
When Johnson City first considered connecting the substations, providers opposed it, afraid they would ultimately offer broadband services to residents. These providers said they already had fiber and would be happy to connect the substations at a "fraction of what JCPB [Johnson City Power Board] is about to spend."
Undoubtedly, they were comparing the costs of building a public network against the costs of leasing services for one year. Johnson City was smart to rebuff them and pursue owning the fiber - companies like Charter and Comcast don't make a profit by offering fair prices on connectivity (in fact, Charter is still bankrupt despite overcharging for its slow broadband speeds). Communities that own their fiber (regardless of whether they offer retail services to businesses and residents) find that they get better services at lower costs than when leasing connectivity.
These cable companies in Tennessee are brutal - they abuse the courts with frivolous lawsuits (that are frequently thrown out at the first opportunity) and invent data to suggest public ownership is a poor choice. Ultimately, Johnson City Power Board will have to choose what makes sense based on the numbers, not on fearmongering from companies that are just trying to protect high profits protected by a lack of competition.
Indeed, FCC, Stop Ignoring Muni Broadband!
Geoff Daily recently put up "Hey FCC: Stop Ignoring Municipal Broadband!" It is a sentiment I wholeheartedly echo and amplify. If the FCC is going to chart a course for where America is heading, it should start with some communities who are already there - Burlington, VT and Lafayette, LA. These communities have built (Burlington) or are building (Lafayette) that networks that everyone will need if America will retain is leadership position in the 21st century.
There are communities across the country that have found success building and operating their own broadband networks. Despite the caricature that municipal broadband invariably leads to boondoggles, that's just simply not the reality. That's part of the reason why I think the FCC needed to include municipal representation on these panels. There's a lot of fear, uncertainty, and doubt that's built up around municipal broadband that the FCC needs to be addressing on a factual basis. By not including municipal broadband on these panels I couldn't help but wonder if either the FCC was buying into these falsehoods or if they just didn't think municipal broadband was a significant enough player to include.The current FCC approach is akin to starting the Interstate Highway system with a series of workshops featuring horse breeders. In the meantime, the Economist has recognized the need for US regulators to get with the times. Fiber is the future - if it weren't for profit-maximizing companies and their lobbyists, talk of DSL would be followed by laughs.
With broadband networks, the role of the state has less to do with limiting handouts than increasing choice. Fibre-optic networks can be run like any other public infrastructure: government, municipalities or utilities lay the cables and let private firms compete to offer services, just as public roadways are used by private logistics firms. In Stockholm, a pioneer of this system, it takes 30 minutes to change your broadband provider. Australia’s new $30 billion all-fibre network will use a similar model.
Slick Sam and Bandwidth on the Bayou
As promised a few weeks ago, Ellen Perlman has written a piece on the story behind the Lafayette, Louisiana publicly owned FTTH network. This might just be the best network available in the U.S. in terms of offering the fastest speeds at the more affordable prices and offering the most benefit to the community. The path was certainly not easy nor quick but they are now offering services. The video below is a good example of how communities can respond to incumbents that prefer to advertise and lie rather than invest in networks. Fortunately the folks down in Louisiana didn't take Slick Sam lying down - they confronted him and are building a modern network to ensure Lafayette can flourish in the future. They no longer have to beg absentee-run networks for upgrades.
Paul Bunyan Coop Brings Fiber to Rural Minnesota
Many people in rural areas get their phone services from a cooperative telephone company. When it comes to fiber in rural areas, some of these cooperatives are on the cutting edge. The July Issue of FTTH Prism [pdf] from Chaffee Fiber Optics has a feature on Paul Bunyan Telephone in Minnesota. They are an aggressive broadband network deployer in rural areas, often saving residents from Qwest or another company unable (sometimes just unwilling) to build these necessary networks.
Cooperative telephone companies fall into our understanding of publicly owned because they focus on their communities first and do not seek to maximize profits at the expense of social benefits.
Paul Bunyan Telephone is nearly 60 years old and now covers over 4,500 square miles. They have used RUS loans to finance significant portions of the network.
Currently, over 4,000 locations are served with our fiber-to-the-home network, which represents about 30 percent of our entire network. For these customers, thanks to the benefits of fiber optics, we can deliver high-speed Internet services up to 40 Mb (both upload and download) and a host of advanced television services including multiple streams of high-definition television, digital video recording, and on-demand services.For those who claim that people in rural areas just don't understand broadband or don't want it, this company has an answer:
One specific example the fiber optic network capacity can have on a business is Northwood DNA, Inc. This is a business operating in a very rural area, Becida, MN, that provides DNA sequencing and genotyping services globally. The services they provide require receiving and sending large data files electronically. Prior to the deployment of the fiber optic network, their business was only able to report two to three test results per day. Today, with the benefits of the all fiber optic network, they report over 50 test results per day.The full story starts on page 9 of the 2009 July FTTH Prism.
Monticello Lawsuit Saga Over; MN Supreme Court Declines Review
In a quick followup, the Minnesota Supreme Court has affirmed the obvious by refusing to review the Appeals Court decision in the TDS (acting as "Bridgewater") v. Monticello case. This means the Appeals Court decision stands; Minnesota cities have the authority to bond for broadband networks. Read our previous coverage of this case here.
When TDS originally sued Monticello, the City had to place the investor money (raised via non-recourse revenue bonds) into escrow for the duration of the case. If the case were not resolved by June 19, 2009, Monticello would have had to return the funds to the investors, leaving it unable to finance the project. Bonding again would have almost definitely resulted in less favorable terms than those achieved before the economic meltdown.
Following the Appeals Court decision, on June 2, 2009, TDS could have had up to 30 days to request review from the Supreme Court. John Baker, an attorney from Greene Espel who represented the City throughout the process, asked the Supreme Court to expedite the review in order to prevent TDS from merely using its thirty days to run out the clock (thus winning the war while having lost every single battle).
Today, the Supreme Court sided with the Appeals Court and an obvious reading of Minnesota law: Minnesota cities are well within their authority to bond for and build broadband networks.
Monticello will immediately start work on the city's publicly owned fiber-to-the-home network. TDS has argued that such a network would now be redundant as they built a fiber network while abusing the courts to stall for time. However, it remains to be seen if TDS is truly connecting all homes with fiber, or is still using copper for that final connection (much like AT&T does in its U-Verse). The top TDS advertised speeds are 25 down and 10 up, which can be achieved with VDSL.
If TDS has truly built a fiber-to-the-home network, Monticello will be the first place in the U.S. with competing full fiber networks. However, I'm not sure that TDS will be able to compete with FiberNet Monticello on some fronts as TDS offers it television via a partnership with a satellite company. Monticello will undoubtedly have more local content and probably better customer service.
Lest you think the court battle is over, Monticello is entitled to recover some of its costs due to the lawsuit.
Nation's Largest Citywide FTTH Network to be Completed Next Year
Chattanooga, Tennessee is predicting it will offer FTTH in its entire service area by next year. The public power company has used fiber-optics in the past to manage its electrical operations and has been planning to offer a full FTTH network for awhile.
"There are two primary components to building this system. One component is taking longer than we thought and the other is happening much faster than we anticipated", said Harold DePriest, President and CEO. "The end result is that services will be available to the entire cities of Chattanooga, East Ridge and Red Bank by summer of 2010." DePriest says once in place, EPB's fiber optic network will be the largest of its kind in the country.However, Chattanooga has suffered the same problem that has plagued other publicly owned broadband projects around the country: incumbent telco and cableco lawyers. Comcast has sued Chattanooga in multiple courts in an attempt to limit competition (see here, here, here, and here for a few examples). As with these cases across the country (from Monticello, MN to Bristol, VA, to Lafayette, LA), the incumbents have lost the cases but successfully slowed the build-out, which hurts the community while padding company profits for an extra couple of years. The network will offer symmetrical speeds of 10-50Mbps while keeping costs lower than the standard prices in the market.
Salisbury Starts Building FTTH Network
Salisbury, a city of nearly 30,000 in North Carolina, has started building its full fiber-to-the-home network. Salisbury had some difficulty in funding the network at first due to the collapsing economy last year. However, they securing financing in November 2008 and have now started building the network. A recent Salisbury Post article notes that Atlantic Engineering Group is installing conduit. However, residents will have to wait more than a year to take any services. They still have to build the multi-million dollar head end. They already have agreements covering access to the telephone polls -- which are owned by Duke Energy and AT&T.
Burlington Telecom Fact Sheet
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Much misinformation has been disseminated about Burlington Telecom (BT).
Here are the facts. BT is a city department of Burlington, Vermont, which owns a fiber-to-the-home network and offers triple play services (phone, cable, internet). The network depends entirely on subscriber revenues and is not subsidized in any form by the City. BT has saved the City money while being built entirely with investor money -- no tax dollars have been or will be used.
BT continues to add subscribers and has a take rate above 40% in the area it first began offering services.
Update: BT has encountered some serious problems following some questionable activities by the Mayor's Administration. I have covered some of the BT developments here.
ILSR issued a report in 2011 that updates this case study: Learning from Burlington Telecom: Some Lessons for Community Networks