Iowans in the small town of Osage have been able to obtain cable Internet access from the community’s municipal utility since 2001. The community is about to take the next step; Osage Municipal Utility (OMU) is acquiring a fiber-optic backbone from a private provider. The purchase will get them started on what will eventually be a Fiber-to-the-Home (FTTH) upgrade.

Serving Osage For More Than 125 Years

Osage, the Mitchell County seat, is home to about 3,600 people and located in north central Iowa. The electric utility began as Osage Electric Light, Heat and Power Company in 1890. After several ownership changes, the municipality became the owner in 1941. In 1959, the utility began supplying natural gas and in 2001, the utility added a communications system. In addition to Internet access, OMU also began offering cable TV and telephone service.

OMU is also developing a Voluntary Community Solar Program in which customers can purchase units of Solar Array capacity and in return they receive a production-related credit on their monthly utility bill.

Another Local Tool

Josh Byrnes, general manager of OMU, described the backbone as “another tool in the economic toolbox.” He noted that the line will create opportunities for people outside of OMU’s service area that live along the backbone to potentially obtain service from private providers.

In addition to providing FTTH to customers in the future, Byrnes noted that OMU will also be bringing much needed redundancy in the area. Incumbent Omnitel Communications is the sole provider of fiber-optic services in Mitchell County. OMU will offer fiber in Mitchell, one of the towns in the county where Omnitel has no fiber presence.

“We are simply getting connectivity to Osage and build out from there. There are going to definitely be opportunities for savings to our rate payers long term. Even more important is the dependability of services moving forward. It’s hard to put a price on that.”

Consumers should be able to expect a certain amount of privacy and recent rules adopted by the FCC are a step in the right direction. That step has also revealed some key differences between profit-driven national Internet service providers, smaller ISPs, and municipal networks. The different attitudes correspond with the different cultures, proving once again that small ISPs and munis have more than just profit in mind.

On October 27th, the FCC adopted an Order to allow ISP customers to determine how their data will be collected and used. According to the FCC, they made the decision in response to public comments about the concern for personal data protection.

The New Rules

Over the past few years, consumers have become savvy to the fact that ISPs have access to personal data and that they often sell that data to other companies for marketing purposes. Under Section 222 of Title II of the Communications Act, telecommunications carriers are bound to protect their subscribers’ private information. Because those rule are designed to change as technology changes, says the FCC and Congress, this same authority applies to private data collected by ISPs. 

The FCC decided to divide the permission of use of personal information based on type, categorizing information into “sensitive” and “non-sensitive.”

Sensitive information will require ISPs to obtain “opt-in” consent from subscribers, which will allow them to use and and share this type of information:

• Precise geo-location 
• Children’s information
• Health information 
• Financial information
• Social Security numbers
• Web browsing history
• App usage history
• The content of communication 

Non-sensitive information would include all other information and customers would need to "opt-out" in order to prevent their ISPs from collecting such data. Examples of non-sensitive personal information include service tier information.

When big corporate incumbent providers fear a hint of competition from a new entrant, they pull out all the stops to quash any potential threat. One of the first lines of offense involves the courts. Iowa City now leases its fiber to Cedar Rapids based ImOn and to stop it, Mediacom is reprocessing an old argument. It didn't work the first time, but they are going for it anyway; this is another example of how cable companies try to hobble competitors; just stalling can be a "win."

A Lawsuit In Search Of An Offense

Mediacom has a franchise agreement with Iowa City to offer cable television services and it also provides subscribers the option to purchase Internet access and telephone services. As most of our readers are attuned to these matters, you probably already understand that just any old cable TV provider can’t come into Iowa City and set up shop. State and local law require them to obtain a franchise agreement, which often includes additional obligations in exchange for access to a community’s potential customer base.

According to a 2015 Gazette article, Mediacom provides annual payments for use of the public right-of-way, operates a local office, and provides free basic cable services to local schools and government buildings. These types of commitments are commonplace as part of franchise agreements and are small sacrifices compared to the potential revenue available to Mediacom.

ImOn started offering Internet access and phone services to Iowa City downtown businesses in January but the company does not offer cable TV services like it does in other Iowa municipalities. ImOn doesn't have a franchise agreement with Iowa City but Mediacom says that it should. They argue that, because ImOn has built a system capable of offering video service, it should also have to obtain a franchise agreement.

In August, U.S. District Court Judge Charles R. Wolle dismissed the case, stating in a nutshell:

Once again we return to Iowa to learn about community networks and high-speed connectivity. Home to municipal networks such as in Cedar Falls, Lenox, and Harlan, Iowa also grows publicly owned networks of a different kind - cooperatives’ networks. The Winnebago Cooperative Telecom Association (WCTA) provides next-generation connectivity to rural areas, and is now upgrading infrastructure in its service area. WCTA uses Fiber-to-the-Home (FTTH) technology to provide Internet access of 100 Megabits per second (Mbps). 

Small Towns and Cities To Get An Upgrade

WCTA is now installing fiber in Forest City, home to about 4,000 people and the county seat of Winnebago County.

WCTA General Manager Mark Thoma told the Globe Gazette’s Forest City Summit newspaper, “We have to work closely with the city. Kudos to the city crew for locating (all the utilities). It’s been going very well.”

WCTA intends to install their fiber underground in Forest City and the municipal utilities department is facilitating the cooperative’s efforts by locating current utilities infrastructure. Collaborating will enable WCTA to bury their fiber without disrupting other services.

This upgrade to fiber will replace the copper lines towns served by WCTA, where members still use DSL. Customers in rural areas received an upgrade to FTTH several years ago. 

Rural Areas First

In 2011, WCTA received $19.6 million American Recovery and Reinvestment (ARRA) award for a fiber broadband project in rural areas throughout its service territory. Half of the money was a grant, and the other half was a loan.

While finishing the fiber builds in these rural areas in 2015, WCTA automatically bumped up the speeds of all rural members. Previous top speeds of 15 Mbps jumped up to 100 Mbps via FTTH but the $65 per month subscription rate stayed the same. WCTA's fiber network speeds are symmetrical, so upload and download speeds are the same.

Cooperatives Have Annual Meetings

With charming cornfields and bustling cities, Iowa is a Midwest hub of community networks. Harlan, the county seat of Shelby County, is located in west central Iowa. About 5,400 people live in the town, situated along the West Nishnabotna River. Back in the ‘90s, Harlan was one of several Iowa towns that built their own cable networks to deliver video and Internet services. In August, Harlan Municipal Utilities (HMU) announced it will continue upgrading to fiber, a project they started in 2012. Upon completion in early 2017, much of the town will have Internet access via fiber.

The Present: 2016-2017 Fiber Project

HMU announced the project on their website in early August. For more details, we spoke with Director of Marketing, Doug Hammer, previously a guest on our Community Broadband Bits podcast. 

During the fiber expansion, HMU will build out to the southern half of town, which is bounded by Highway 44 to the north, Highway 59 to the west, and the river to the east. The utility also intends to build out slightly north, into the center of town. The project will take approximately six months to complete. 

First, HMU will install conduit, the reinforced tubes which hold the fiber, to all their electric, gas, and water customers along major roads. Then, in the first quarter of 2017, they will bring fiber to homes and businesses. [Update: Those homes and businesses already receiving telecom services. Fiber to non-telecom customers will be connected if the property adds telecom services or when advanced metering applications are launched.]

The Past: Projects and Paperwork

By 1997, HMU was providing Internet service via a Hybrid Fiber-Coax (HFC) network. They financed the network with a grant from the Commerce Department and utility revenue bonds. Committed to affordable, high-quality service, the utility began to install fiber in certain areas in the north [Update: the northwest portion] of town in 2012.

Local officials in Charles City, a town of 7,500 in northeastern Iowa, approved a preliminary study of community broadband interest late last month. The study will determine whether additional funds should be allocated toward a more comprehensive study. This announcement comes on the heels of increased regional interest in the Iowa Fiber Alliance, a proposed multi-community fiber ring. 

The preliminary study will cost the city $18,500 and should be completed before the end of the summer. The Community Broadband Engagement and Education Project seeks to engage key community stakeholders, educate the public on high-speed community networks, and ultimately measure the interest of local residents, businesses, and government leadership. 

Third Time’s the Charm

Local interest in community networks has peaked twice in the past decade. In 2005, Charles City residents approved a referendum to create a telecommunication utility with a 62 percent majority. Under threat of losing revenues to a community network, incumbent Internet service providers (ISPs) promised local officials that they would improve the network. Stopgap measures from Mediacom and CenturyLink marginally improved local connectivity in the short-term, but Charles City residents soon realized that they hadn’t escaped the letdowns of the telecom octopus. 

When community leaders in Lenox, Iowa, gathered together to examine the community's cable TV options in the 1980s, they probably didn't expect their decision to impact local Internet access. Fast-forward 30 years, and this town of 1,400 people now has one of the most sought after forms of Internet access infrastructure: Fiber-to-the-Home (FTTH).

Lenox Municipal Utilities owns and operates a FTTH network that offers symmetrical speeds to hundreds of customers in town. It’s just one of many communities around the nation that have invested in this rugged, future-proof technology.

Same Utility, Changing Technology

We spoke with the Lenox Municipal Utilities General Manager John Borland who graciously provided some of the history of the network.

Since the early 1900s, Lenox has operated its own electric and water systems. These essential services enabled the community to thrive in the southern plains of Iowa. Eventually, a local entrepreneur decided to build and operate a TV system to ensure that the Lenox community stayed connected. In the 1980s, the town purchased the coaxial network from the owner who was ready to sell the system, but wanted to keep ownership within the community. Unfortunately, Borland didn’t know the identity of the entrepreneur whose investment eventually led to top-notch connectivity in this most unexpected place.

By the late 1990s, the network needed replacing, and nationwide, communities had already begun to realize the importance of Internet access. The incumbent Internet service provider, Frontier, offered dial-up and some DSL. Anticipating future need, Lenox decided to rebuild the entire network with fiber. 

Better Connectivity in the Community

In 2005, the community voted on a referendum to enable the utility to provide Internet service; it was one of many towns voting that year to ensure local control. The FTTH build cost about $1.5 million, which they funded through municipal revenue bonds.

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

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

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

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

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

Key facts on the Broadband Communities’ Conference

What: “Fiber for The New Economy”

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

When: Oct. 18-20, 2016

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

Cedar Falls may be the Iowa city famous for its Fiber-to-the-Home (FTTH) network, but that won’t stop Muscatine. This small city of approximately 29,000 people is about to upgrade its aging network. For a little over a year, the municipal utility, Muscatine Power and Water (MP&W), has planned for the move to FTTH with funding from an interdepartmental loan. Now, FTTH is coming to Muscatine's MachLink Internet access service.

MP&W expects to break ground this year on this $8.7 million FTTH project and to finish building the network in 2017. Fiber will offer speeds much faster than those available on the existing hybrid fiber-coax (HFC) network. In anticipation, MP&W is increasing speeds for subcribers without raising rates.

More than a Year in the Making

The local newspaper, the Muscatine Journal, has closely followed the story. In late November 2014, MP&W announced the planned FTTH upgrade. MP&W is taking a slow and steady approach and planning to complete the upgrade in 2017. The latest Muscatine Journal article from this March emphasized how the large infrastructure project has many "interlocking" pieces that must fit together to make the project successful.

As we reported when MP&W announced the upgrade in 2014, a FTTH network will achieve immediate goals and help achieve a number of benefits. MP&W wants to improve residential services, reduce maintenance costs, and increase network reliability. Upgrading to FTTH will also contribute to long-term goals, such as encouraging economic development. Fiber is a future-proof technology, adapting to the increasing need for bandwidth from households, businesses, and institutions. MachLink will offer speeds of up to a Gigabit (1,000 Megabits) per second.

Outperforming Expectations

This month, Spencer Municipal Utilities (SMU) will continue to expand the town’s fiber network. The steady incremental build will bring better Internet access to residents, business, and municipal facilities in the northwest Iowa town.

Incremental Approach

The Spencer Daily Reporter wrote about how SMU is connecting more residents with Fiber-to-the-Home (FTTH) one step at a time. The municipal utility broke the project into four phases.

Phases I and II included 2,700 homes and businesses. Phase III, which begins this month, will impact more than 1,100 homes and businesses. Phase IV will finish extending FTTH service to the rest of the city.

The project will replace the existing telecommunications infrastructure installed in the late 1990s. Curtis Dean of the Iowa Association of Municipal Utilities described the network's history in our Community Broadband Bits podcast from 2012.

Evolving Needs, Changing Technology

Spencer Municipal Utilities marketing and community relations manager, Amanda Gloyd, said to the Spencer Daily Reporter:

"Just like internet service has evolved from dial up to digital service lines and cable modem, fiber will give customers the next level of service to continue to improve the way they live, work, and play and we are continuing to build out this service throughout the community of Spencer."

Spencer, like many other small towns, chose to invest in Internet network infrastructure so residents and businesses in this rural area could get fast, affordable, reliable services. Subscribers appreciate the excellent customer service that comes with their local, publicly owned network.

Before We Leave