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Broadband's Impact

Innovative Fiber Financing Through a ‘Broadband Improvement District’ in Ammon, Idaho

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DALLAS, May 1, 2017 – One of the biggest puzzles in broadband today is a financial conundrum: Our nation needs next-generation networks everywhere, but advanced internet capacity is spotty at best.

One solution to the problem of financing universal broadband networks — on display in Ammon, Idaho — will be presented at the Rural Telecommunications Congress sessions at the Broadband Communities Summit, in two sessions on Wednesday, May 3, from 4 p.m. to 5 p.m.; and on Thursday, May 4, from 9 a.m. to 10 a.m.

REGISTER TODAY to attend the RTC sessions by using the Rural Telecommunications Code discount code of RTC350.

Consider the traditional approaches to large-scale broadband financing, most of which were built around particular widely-used applications. Telephone companies grew their copper infrastructure off of ratepayer-financed instruments. Cable companies’ financial structures were defined by the industry’s model to monetize its vertically integrated video content through co-axial wires optimized for television content.

So will these “telco” and “cable” models drive investment in fiber broadband and 5G wireless?

The answer to that question is “no,” according to the example of Ammon, Idaho, a 14,685-population city neighboring Idaho Falls.

Ammon’s approach to financing its fiber-to-the-home network is worth examining in greater detail precisely because it combines three unique elements from which other communities can benefit:

  • It disaggregates the costs of infrastructure, utility, and access that are associated with an FTTH build.
  • It provides a cutting-edge example of why separating Infrastructure and services (also known as “open access”) is fundamental to spurring applications of the future.
  • It offers hope for small and rural communities that: Yes, you can get gigabit fiber without having to wait until the 22nd Century.

In the session on financing FTTH on 4 p.m. on Wednesday, May 3, Michael Curri of the Strategic Networks Group will lead a discussion on the “essential services approach” being undertaken by Ammon, and also by LS Networks. The City of Ammon’s open access network is built upon an opt-in, or purely voluntary approach featuring a “Broadband Improvement District.”

“Municipal networks that have the benefit of leveraging a utility (electric, gas, etc.) have shown the ability to build and launch community service at a successful level in terms of take-rates, financing, and operations. But what happens when you community doesn’t have that head start,” reads the session description.

“This session will examine a new way to fund the last mile by combining Broadband Improvement Districts, cost reduction financing and local economic growth in a sustainable, low-risk approach,” it continues.

In the panel that begins at 9 a.m. on Thursday, May 4, Joel Mulder of ex2 Technology will consider “ownership models for rural broadband.” This session will feature Bruce Patterson, Ammon’s technology director, Leo Carlson, business and technology manager for internet provider Norvado, and Rick Smith, director of general services for the City of Cortez, Colorado.

“In metropolitan areas, broadband providers are usually vertically integrated – the same company builds, owns and manages the infrastructure and also delivers services,” reads that session description.

“Rural network owners have been more willing to experiment with different ownership and funding models. In this session, we’ll hear from multiple network owners that have achieved success in rural areas.”

Says Mulder, the moderator of the Thursday session, and a member of the RTC board, “These are the guys that have built or are building” advanced networks for their communities. “They will discuss ownership, pitfalls and roadblocks for constructing such networks.”

Adds Curri, who is also a member of the RTC board: “I am focusing on how these networks pay for themselves, and how — when the property owners are financing this — the last-mile gets done in a low-risk, sustainable way.”

REGISTER TODAY to attend the RTC sessions by using the Rural Telecommunications Code discount code of RTC350. This registration code entitles you to the lowest possible rate to attend not only the RTC sessions, but the entire Broadband Communities Summit program. The $350 costs is about one-third of the standard ticket price.

Breakfast Media LLC CEO Drew Clark has led the Broadband Breakfast community since 2008. An early proponent of better broadband, better lives, he initially founded the Broadband Census crowdsourcing campaign for broadband data. As Editor and Publisher, Clark presides over the leading media company advocating for higher-capacity internet everywhere through topical, timely and intelligent coverage. Clark also served as head of the Partnership for a Connected Illinois, a state broadband initiative.

Broadband's Impact

Lindsay Mark Lewis: As Inflation Spiked, Broadband is ‘The Dog That Didn’t Bark’

Why have internet prices remained constant while demand surges? It all boils down to investment.

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The author of this Expert Opinion is Lindsay Mark Lewis, executive director of the Progressive Policy Institute.

There are many lessons to be learned from last year’s midterms, but Democrats should not take the results as some broad endorsement of the economic status quo. Midterm voters identified inflation as the most important issue driving their votes. And while the latest Labor Department data shows the producer price index decreasing by 0.1% in February, prices remain 4.6% higher than a year ago, which means lawmakers still have work to do to bring inflation under control.

And as they search for ideas, they may want to examine the dog that didn’t bark – in particular, the one sector of the economy that has been an interesting counternarrative to the otherwise troubling inflation story.

Home internet service is one of the few major living costs that isn’t skyrocketing. In fact, the most popular broadband speed tier one year ago actually costs 15% less today, on average.

This success story – and the bipartisan policies behind it – offers important lessons.

Remarkably, broadband prices are declining even as demand surges. The pandemic made home internet service more essential than ever for education, job opportunities and health care – all driving internet traffic 25% to 50% above pre-pandemic levels.

So why have internet prices remained constant – even declined by some measures – while demand surges? In short, it all boils down to investment.

When the pandemic cratered economic activity in the spring of 2020, executives in many industries – from lumber to oil refineries to computer chips – made the snap decision to pull back on long-term investments in new factories and manufacturing capacity. When the economy roared back, those industries couldn’t meet demand, sending prices soaring.

In the broadband industry, conversely, providers responded by investing $86 billion into their network infrastructure in 2021 – the biggest one-year total in nearly 20 years. These investments are fueling faster speeds – fixed broadband speeds are up 35% nationwide in the past 12 months – while making sure networks have the capacity to handle growing traffic needs.

This teaches us three things.

First, we should observe a Hippocratic oath and “do no harm.” America’s broadband system has thrived under a decades long bipartisan consensus for light-touch, pro-investment policies. Nearly $2 trillion in private capital built the networks that now deliver American consumers higher speeds at lower per-megabit prices than consumers enjoy in Europe, despite having to cover greater distances and more difficult terrain.

This further tells us that it’s precisely the wrong time to abandon this successful model in favor of price controls and utility-style regulation, as some House and Senate progressives have proposed. Even Democratic policy experts acknowledge that approach would be toxic for private investment.

Second, policymakers need to recognize that broadband isn’t immune from the supply chain crunches plaguing so many other sectors of the economy. Broadband buildouts are already getting delayed by shortages in fiber cable, network hardware and skilled labor. And that’s before $42 billion in federal infrastructure funding goes out the door starting next year, which will only intensify demand for these scarce supplies.

That means rural buildout projects funded by federal dollars are likely to see inflationary pressures – and take longer to complete – than Congress expected when it passed the infrastructure bill in 2021. That will put pressure on state broadband offices to be even more diligent about waste, and to emphasize reliable supply chains with experienced network builders. Bidders will also need the flexibility to buy fiber from wherever they can manage to source it, even if that means relaxing the program’s strict “Buy American” rules. This requires a regulator ability to do smart tweaking of rules to expedite buildouts cost-effectively.

Third, we need to help more financially struggling households get connected. Thanks to President Joe Biden’s Affordable Connectivity Program – and an agreement with 20 broadband companies – 48 million households can now get home internet service for free.

But more than a year later, just over a third of eligible households have signed up. Investing in enrollment campaigns and digital literacy training programs is the fastest way we can crank up the dial on enrollment. Relatively small investments here could pay huge dividends in bringing millions more Americans into the digital economy.

Even with these remaining challenges, the overall contours of American broadband policy – encouraging investment, competition and affordability – are working well. And as the saying goes: “If it ain’t broke, don’t fix it.” In an inflation-roiled economy that defies easy answers, we should learn from – not mess with – this all-too-rare success story.

Lindsay Mark Lewis is executive director of the Progressive Policy Institute. Contact him at llewis@ppionline.org. This piece was originally published in the Richmond Times on March 24, 2023, and is reprinted with permission.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views reflected in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.

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Broadband's Impact

Josephine Bernson: The Customer Experience is About More Than Fiber

‘Listen to the customer’ is a fundamental pillar in gaining a satisfied customer.

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The author of this Expert Opinion is Josephine Bernson, Chief Revenue Officer at Great Plains Communications.

Customer experience and the digital customer experience are what makes businesses today stand apart from competitors. In our connected world, it means delivering products and services via high-speed internet, provided by a network that’s reliable and scalable according to rising bandwidth demand.

Yet, we must keep in mind the other component of a first-rate customer experience: customer service excellence.

Customer service excellence, from the beginning

How does a fiber provider successfully work with the customers and the community from the very beginning? And, continue to provide exceptional customer service each day thereafter?

It begins with listening.Listen to the customer” is a fundamental pillar in gaining a satisfied customer, whether it’s meeting with business executives, community leaders or residents. What are they hoping to achieve with their network, short-term and long-term? Any concerns that should be addressed?

Respond with solutions that meet their needs.  Personalization is better than a one-size-fits-all approach. Each customer has different needs and unique bandwidth specifications that should be taken into consideration. For example, the ability to adjust availability to accommodate peak work hours for a financial institution or local government complex or the flexibility needed for a local business that serves an online global market.

Get to know your customers. Focus on getting to know your customers through participating in local events and spending time in the community. Teams that live and work in same community they serve care about providing their neighbors with high-quality products and superior service. Valuable feedback comes from customers who directly interact with local employees immersed in the community.

Timely and convenient customer service options. If there’s a problem, how can customers contact you for a resolution? Does the customer service center or 24/7 operations center always have agents available? Are there easily accessible online resources equipped to handle common questions? Automation is a big trend in CX. While we enjoy our personal relationships with our customers, we also leverage technology for self-service tools. It’s important to enable customers to do business in whichever manner works best for them.

Happy employees for a happy customer experience

Happy employees have long been credited with increased productivity and better service for customers. Great Plains Communications’ culture has always been to attract, train and retain workers from the areas it serves.

Customer service representative Marisa Benham has been with Great Plains Communications for 15 years. “I’ve always been a people person so I really love talking to people! I love helping them figure out what services they want and helping them if they have an issue with their account.”

As for the GPC team itself, she says, “The biggest thing I love about our team is that even though we’re a large company, I feel like we are still trying to get that small company family feel.  I really love that about Great Plains as well.”

For any business to survive for a long period it must continually evolve. Great Plains Communications is a 113-year-old company serving nearly 200 Midwestern communities.  As a leading digital telecommunications leader, our core focus remains the same: customer service excellence. We believe in our high-performing network and high-performing people.

Customer loyalty depends on the customer experience, but it must be earned. It’s more than state-of-the-art technologies. It’s the people behind the innovation. It’s the teams that deliver and support the technology that make all the difference.

Josephine Bernson is the chief revenue officer at Great Plains Communications. This piece is exclusive to BroadbandBreakfast.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views reflected in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.

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Digital Inclusion

Sean Gonsalves: National Digital Inclusion Alliance Hosts Largest Net Inclusion Gathering

NDIA Executive Director Angela Siefer zeroed in on the need for good data.

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Selfie of NDIA Executive Director Angela Seifer and Net Inclusions audience from Twitter

With nearly 1,000 in attendance at the Henry B. Gonzalez Convention Center in downtown San Antonio for the National Digital Inclusion Alliance (NDIA) marquee gathering, those on the front lines of bridging the digital divide across the nation came to the three-day conference (Feb 28  to March 2) to network, share lessons, best-practices, and learn from experts as the largest ever federal investment in expanding broadband access is heading to state broadband offices this summer.

Mayor addresses attendees, acknowledges open secret of segregation

San Antonio Mayor Ron Nirenberg welcomed attendees, noting how his city was a fitting venue for the event.

“It’s no secret San Antonio is one of the most socio-economically segregated cities in the United States,” he said. “And that’s why we have zeroed-in on equity – in our budget, in who gets invited to the table.”

DeAnne Cuellar with Mayor Ron Nirenberg

Nirenberg congratulated NDIA for its work and the attendance record set by this year’s gathering. He also singled out our own outreach coordinator and San Antonio resident DeAnne Cuellar, not only lauding her work with ILSR’s Community Broadband Networks team but for her role in bringing city officials together with Older Adults Technology Services as the city commits to connecting 100,000 older adults in the city.

(ILSR’s Community Broadband Networks team, which has long worked with NDIA participated conducted a workshop, participated in several panels discussions, and hosted a special Connect This! live stream at a social mixer at The Friendly Spot Icehouse.)

“Broadband is a basic human right and is a public utility. That’s why digital inclusion is a pillar of our recovery program,” Nirenberg said, noting how that is reflected in line items in the city’s budget.

Mayor Nirenberg also spoke candidly about injustices that had been baked-in to city and state policies in the past and, whether intentional or not, excluded vulnerable communities across the city, putting them at a socio-economic disadvantage. He said that closing the digital divide was central to correcting those injustices.

He concluded his welcoming remarks encouraging attendees to “use technology to live, learn, work and thrive.”

Texas broadband office announces new network funding opportunity

Also on hand for the conference was Greg Conte, Director of the Texas Broadband Development Office. Conte announced a Notice of Funding Opportunity for $120 million in grants for the construction of new high-speed Internet infrastructure across the Lone Star State.

As projects are funded to build new infrastructure, the state can’t assume people will automatically subscribe for Internet service, as efforts to tackle affordability and adoption are equally important undertakings.

“We want to make sure communities can get online and use it,” he said. “We ask all Texans to help in this process.”

He also briefly touched on something numerous other state broadband offices are in the process of doing: beefing up staff as each state is set to receive an historic amount of federal funds from the bipartisan infrastructure bill’s BEAD program.

Conte was a guest on our Community Broadband Bits podcast last summer in which he discussed the challenges of staffing up his office and addressing the dearth of data about precisely where broadband is and isn’t available across the state.

Engaging other sectors in the work of advocating for more ACP funding

Batting clean-up was NDIA Executive Director Angela Siefer, who first zeroed in on the need for good data that shows and measures how local digital equity programs are working, and how those efforts can be improved.

Angela Siefer speaking at Net Inclusion

And while quality robust data is vital, she said, it is also worth thinking about who benefits from expanded broadband access (beyond individual end-users) and how data and stories about digital inclusion initiatives can be used to engage industries and sectors of society who may not see bridging the digital divide as an urgent concern.

That includes the necessity of getting more than just Internet service providers at the table. Buy-in from healthcare providers, educational leaders, captains of retail and commerce, as well as transportation planners and housing officials should be engaged in helping to make broadband available especially for residents who struggle with affordability.

Specifically as it relates to commerce, Siefer noted, “the savings that can come from conducting certain business online can be invested into access.”

Siefer also emphasized the value of digital equity advocates sharing the stories they encounter of the lives impacted by their work with those who may not be tuned into the connectivity crisis that still plagues even such a technologically-sophisticated nation as the U.S.

Lastly, Siefer reminded the attendees that the federal funding that supports the Affordable Connectivity Program will run in the next year or so without additional appropriation from Congress.

“We need more money for the ACP,” she said, adding that it was important for state and local leaders to be pushing their Congressional representatives to replenish the ACP’s coffers.

“The long term plan is that the Universal Service Fund needs to be fixed but that is going to take time. The ACP will run out of funds before the USF is fixed,” she said.

Before the general assembly dispersed to a variety of focused workshops and breakout groups, Siefer ended with a note of encouragement: “Remember you guys are the heroes. You do the work on the ground. But NDIA has your back.”

Watch the plenary sessions below. Also, stay tuned for our new podcast series Building for Digital Equity, which will debut soon and feature interviews with dozens of frontline digital inclusion practitioners discussing the work they are doing in their local communities.

This article originally appeared on the Institute for Local Self Reliance’s Community Broadband Networks project on March 2, 2023, and is reprinted with permission.

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