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Thurman, New York - White Space Test Case

Thurman, New York, like many other rural communities, has little or no access to broadband. Many of the 1,219 residents still use dial-up. According to a recent town survey, less than 25% of the population has connections that could be described as high-speed. Thurman, however, will soon be tapping into an uncommon source for connectivity - so called White Spaces.

In a recent PostStar.com article, Jon Alexander reports that the community is now moving forward with a plan based on using the unused radio spaces between television networks to provide access. It was only recently that the FCC approved the method. The Town Board just approved a resolution to dedicate $20,000.00 in state economic development grants. The funds, about two-thirds of grant funding, will be used to test out the technology in the northern and western sections of town. If the experiment proves successful, additional funding for a build out will need to be allocated.

Thurman, which lies entirely in the Adirondack Park, has been largely ignored by private telecom investment. With such a sparse population, the Town is used to being overlooked. In fact, Federal surveys often show Thurman as uninhabited. Town Board Member Leon Galusha told Alexander, “Believe it or not, people do live here.”

Because the geography of Thurman is hilly and tree-covered and the town's population is spread out, the town is a perfect place to test the White Spaces technology. White Spaces do not require line-of-sight, as in some wireless technology, and vegetation or walls do not interfere with the signal. The technology is becoming more popular in Europe, but has only been used sparingly in the U.S. In order to use the White Space, the town will need access to Frontier Wireless' fiber optic lines, which run through town.

Syracuse Community Broadband Initiative Changes Name

The folks in Syracuse who are organizing for a community-owned network have changed their name from the Syracuse Municipal Broadband Initiative to Syracuse Community Broadband Initiative:

Syracuse Community Broadband Initiative is the new name of the project. This was done because the use of "municipal" seemed to create a number of misconceptions in the minds of some institutional leaders. We used the term "municipal" generically to mean community-owned, and community ownership and control is what we wish to emphasize. Moreover, the form of business entity we favor is not a municipal authority but a 501(c)(12) utility service, a special type of consumer cooperative designed for, e.g., telecommunications, power, and water utilities (there are over 2,000 such utilities in the U.S. today). We hope the new name will better convey the nature of the project.

In talking to people and journalists, I have also found some confusion around the term "municipal." Some assume this means a muni network would only serve city departments, schools, libraries, etc.

Making a network a coop rather than being owned by the local government may help win some support from those who are hostile to the government owning anything, but there are downsides as well.  Local governments have hundreds of years of experience building infrastructure and therefore have more financial tools available.  Funding a new coop can be a daunting challenge.  

We are very supportive of both approaches in our efforts to ensure broadband networks are structurally accountable to the communities they serve. As groups like these folks in Syracuse find solutions to these problems, we hope they will share their successes as well as lessons learned.  

Axcess Ontario Middle Mile Network Wins Award

CIO Magazine is the third organization in less than a year to recognize the importance of Ontario County's broadband investment in itself. CIO received a "CIO 100" award to go with recognition from Computerworld and the John F Kennedy School of Government at Harvard. Axcess Ontario is an open access middle mile network built without any federal loans or grants. They wanted to invest in themselves and have succeeded. The network serves multiple private sector telecom firms, including Verizon Wireless - a fact that should be recognized in an age when some would have us believe the public sector should never be involved in this essential infrastructure.

Three Counties in New York Building Southern Tier Network

Steuben, Chemung, and Schuyler counties have joined with fiber-optic cable manufacturer Corning to announce a middle-mile network connecting community anchor institutions, wireless towers, etc. Corning picked up the lion's share of the network, $10 million of the $12.2 million price tag.
Local governments, educational institutions, health care organizations and other commercial/industrial businesses also stand to benefit greatly, said Marcia Weber, Southern Tier Central executive director. Possible applications include “distance learning” between college campus branches and “telemedicine” between rural clinics and major hospitals, Weber said. … The project has been a top priority for Southern Tier Central in recent years. Weber, who called it “her passion,” was very disappointed when a major federal stimulus grant was narrowly missed last year. The counties’ share (Steuben, $1.23 million; Chemung, $790,000; Schuyler, $188,000) will fund a non-profit, to be called Southern Tier Network, that has been created to oversee and maintain the network.
The project starts this year and expects to be finished by 2013. In 2014, the project is expected to become self-sustainable -- being funded by the fees it charges for access to the infrastructure. A fact sheet on the project [pdf] explains the governing structure:
Southern Tier Network is a new not-for-profit, local development corporation (LDC) established to own, build and manage a $12.2 million regional fiber optic backbone that will enable access to the highest speed broadband connectivity available in Chemung, Schuyler and Steuben Counties. Articles of Incorporation for Southern Tier Network have been filed with New York State, and a board of directors is in place, comprised of representatives from the three counties and other community stakeholders.

Connecting to Each Other: Upstate New York

In the ongoing effort to better network us network-type people, I wanted to note a site, Agrilan Rural Broadband Blog, that is working toward better rural broadband in upstate New York. I plan to put up short posts like this from time to time in hopes that people will get a better sense of who is near them (or has similar interests) for coalitions to advocate for broadband networks that are structurally accountable to communities.

Axcess Ontario Officially Complete

Ontario County was working on a publicly owned solution to Middle Mile long before the broadband stimulus approach made it popular. And now, before most of the stimulus money has been disbursed, they have completed an expanded version of their initial plan.

To date, Axcess Ontario has signed master agreements with eight telecom and broadband companies, including Verizon Wireless and national broadband provider tw telecom. Axcess Ontario is in continual discussions with other service providers, and is working aggressively on its next goal of luring a fiber-to-the-home (FTTH) service provider to Ontario County. With the fiber ring complete, businesses and municipalities now have access to faster and less expensive broadband, as well as bandwidth equal to global broadband leaders. Businesses can gain access to the ring simply by contacting any of the eight service providers that work with Axcess Ontario. Residents do not yet have access to faster and less expensive broadband, but they will once a FTTH service provider is secured. Axcess Ontario has been working to lure a FTTH provider for more than a year, including submitting an application on behalf of Ontario County, NY, to Google's "Fiber for Communities" ultrafast broadband project earlier this year. More than 1,100 communities nationwide responded to that project, and Google just announced last week that it was postponing its selection of winning communities to early 2011.

We will be interested to see if they can lure a FTTH provider -- though middle mile can lower the operating costs of providing such a service, the capital costs are not significantly changed. And with the robust middle mile already connecting community anchor institutions, a new FTTH provider cannot count on those high-revenue customers. We have seen this previously in Alberta, Canada. Axcess Ontario is an example of a good public-private partnership - as noted in Telecompetitor:

Nonprofit Fiber Helps Businesses in New York's Finger Lakes Region

A non-profit brainchild of the Ontario County local government in New York, Axcess Ontario, has built a fiber-optic ring in what used to be a broadband desert. A local business recently wrote about their experience with the network:
We recently determined that our bandwidth was insufficient due to our growth and we went about the process of bringing in additional bandwidth. We contacted a local company, Finger Lakes Technologies Group and were pleasantly surprised to discover that the ring was now totally accessible to our location and after a few simple conversations, we committed to the installation of a local link to the new fiber optic network that was now approaching maturity.
In short, this is yet another non-profit putting community needs first and building the infrastructure we need.

Ontario County Open Access Middle Mile Network In the News

Stop the Cap! has the authored the most recent of several articles examining a unique middle mile broadband approach in the Finger Lakes region of New York. Their title summarizes the motivation: Ontario County, NY: We Need Fiber So Badly, We Just Did It Ourselves. That story includes a video clip of a recent CNBC Power Lunch 2 minute piece about the Axcess Ontario initiative (complete with the factual error that "no provider offers 100Mbps;" in fact, several community broadband networks offer 100Mbps and Chattanooga has moved beyond with a 150Mbps offering). Ontario County has a population of some 100,000. To stay relevant in the modern era, they determined the County had to do something to improve broadband availability, so they created a nonprofit called Axcess Ontario, an initiative sufficiently impressive for the County's CIO to receive an award - State Public Sector CIO of the Year. In creating Axcess Ontario (originally named Finger Lakes Regional Telecommunications Development Corp), the County wanted to be locally self-reliant and did not seek funding from the federal government:
Unlike numerous similar attempts in other parts of the country, Ontario County funded its network without dollars from the American Recovery and Reinvestment Act. Those who created Axcess Ontario were insistent the project shouldn't rely on the availability of outside funding, according to Edward Hemminger, CIO of Ontario County. The network's startup costs were $7.5 million, which the municipality generated through the Ontario County Office of Economic Development/Industrial Development Agency. The organization is a quasi-government agency created by the state to generate economic activity.

Cable Cos, Wi-Fi, and Limiting Competition

David Pogue, a NY Times Tech columnist, recently wrote about a partnership between cable companies to share Wi-Fi access points:
I, a Cablevision customer, can now use all of Time Warner’s and Comcast’s hot spots in these three states. If you have Time Warner’s Road Runner service at home, you’re now welcome to hop onto Cablevision’s Optimum hot spots wherever you find them, or Comcast’s Xfinity hot spots. And so on. It’s as though all three companies have merged for the purpose of accommodating your Wi-Fi gadget, hugely multiplying the number of hot spots that are available to you. The companies call this kind of partnership “the first of many.” Now, I think this development is fantastic. It hits me where I live. It’s free. It’s fast and reliable. I love it.
He goes on to ask, what's in it for them? Apparently, David Pogue has little understanding of how dominant firms work together to cement their power and limit competition. He then put up a post with an answer from an insider:
“David, widely available WiFi makes our service better, and more useful and valuable,” he wrote. “And we don’t compete directly with TWC or Comcast for high-speed Internet customers; we compete with phone companies that offer a wide array of services, including data plans over increasingly over-burdened and sluggish cellular networks for an extra $60 per month."
Bingo. Big cable companies do not compete with each other - one suspects these companies have tacitly divided the national cable market with an understanding that they will not overbuild each other. The barriers to entering the cable/broadband market are already substantial: any new network requires a massive upfront capital expenditure. This Wi-Fi partnership with cable incumbents makes that barrier even larger. Let's imagine that a city wants to build a publicly owned network that will compete with one of these companies. Customers of the private incumbent have Wi-Fi access all over the place, across three states - and probably more to come. The incumbent gets the benefit of investments from other cable cos in the partnership. Any guesses on whether the publicly owned network will be invited to join that partnership?

Verizon Against the Public Interest

In another example of how some private companies continue acting against the public interest, Verizon is again using FiOS as a weapon, threatening not to bring it to a New York town unless the town essentially waives some $12,000 in real estate taxes. Communities maintain what is called the "right-of-way" - where utility polls are located or conduit is buried underground. Imagine if a cable company had to work out an arrangement with every resident who had a poll in their yard to string cable - what a headache! Instead, companies like Verizon negotiate with the municipal government for access to the right-of-way. In return, communities typically negotiate for things like a franchise fee, often a 3%-5% fee from television revenues that is used to fund local public access channels. The right-of-way is a valuable community asset and the community deserves to benefit from allowing private companies to profit from it. In this case, Verizon wants to dodge the real estate taxes it owes by taking them out of the franchise fee - which would pass effectively reduce its public interest obligations required by using the rights-of-way. Yet another way in which companies put profits above the community. Verizon must have some skilled accountants, they never seem to pay taxes. When they sold off their customers in New England to the failing Fairpoint, they also avoided paying taxes on the income from the sale.