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Paul LaManes and Tom McLaughlin: Lessons Learned from a Successful Municipal Broadband Project Partnership

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The authors of this Expert Opinion are Paul LaManes (left) and Tom McLaughlin

When it comes to a decision that will affect the lives of everyone in your community for years to come, the only place to start is with the truism, “You don’t know what you don’t know.”

What we did know is that with all the technological options we knew a collaborative expertise was going to be required to obtain the outcome we desired. That was the starting point for Wyandotte Municipal Services, which serves the community of Wyandotte, Michigan., located about 11 miles south of Detroit, when it came time to upgrade our municipal broadband infrastructure.

In 1983, Wyandotte introduced basic cable television service over a coaxial network. By 1999, that network had been rebuilt into a hybrid fiber coaxial infrastructure operating at 750 MegaHertz (MHz) and providing broadband cable TV, internet and phone service to 7,544 residential and business subscribers.

However, as the network continued to grow, subscribers began experiencing congestion in the network, which led us to start planning a network upgrade.

Our first step to address this issue was to use node splits and that resolved the issue for a few years but was a stop gap measure to the inevitable, how to future-proof the system for years or decades to come. After comparing the cost of additional node splits, fiber deeper and possibly a remote physical solution to the cost of bringing fiber to the home, we found that FTTH would not only more effectively eliminate network congestion, but also lay the foundation for future smart city and smart home programs.

Our experience with this project provides a textbook case for how to tackle a broadband network upgrade and the benefit from having an experienced partner at CommScope.

Rely on independent, third-party expertise

To find out “what you don’t know,” it’s vital to turn to a true expert. The consequence of failure is just too great, and relying on internal staff to “get up to speed” or bringing on a consultant with limited field experience is a recipe for failure.

To ensure we made our decision based on knowledge, not assumptions, we decided to partner with an expert in connectivity solutions for communications networks.

Here are just some of the vital answers and services our partner was able to provide to Wyandotte:

  • Resourcing – Our partner quickly recognized that we were a small operation with very qualified but limited staff and faced a critical resource gap. The partner’s Professional Services team then provided us with analysis, guidance and design support as we worked through determining the best network solution. As a result, the City of Wyandotte was able to maximize our network investment and potential.
  • Planning – Thanks to our partner’s breadth of experience, Wyandotte was assured of being presented with every possible option for our upgrade and formulating a cutting-edge plan for delivering superfast download and upload speeds combined with unparalleled performance.
  • An advocate – As a client of the city’s municipal services, our partner’s goal was to help us select the best possible option for our needs – and not be pressured into taking an approach that benefited a particular consultant or network provider.
  • Follow-through – Once the design was finished, our expert partner would be able to seamlessly handle the implementation of whatever plan we decided on, including management of multiple contractors, network component integration, and the relocation and expansion of WMS’ headend.

Make the right decision for your future

2020 demonstrated how important internet connectivity has become to keeping our society functioning in the face of rapid and unpredictable change. This makes choosing the right broadband strategy of vital importance. Our partner was critical in helping Wyandotte sort through the issues of hybrid fiber-coaxial and FTTH systems.

The analysis started with defining and quantifying the cost and benefits of upgrading the existing HFC network versus building an FTTH network. While an initial high-level evaluation of architecture, technologies, business resources and future service goals suggested that an FTTH build made the most sense, we had our partner perform a more in-depth analysis that addressed challenges such as headend relocation, fiber overlay requirements, an FCC repack, IP-delivery requirements, and budget and municipal funding. For this deeper evaluation, our partner had the knowledge and experience to:

  • Analyze various FTTx architectures and IPTV solutions
  • Develop a five-year broadband technology roadmap
  • Develop/create potential future service offerings
  • Design a plan and layout for the headend move
  • Perform detailed outside plant fiber design services
  • Conduct off-air antenna and satellite signal surveys

Only after this deeper analysis was Wyandotte ready to make its decision. Further, network service providers know that over the long term they must bring more bandwidth to more endpoints in their networks to support expanded broadband access and new 5G services.

Over the short term, however, they can resist digging new trenches and stringing new overhead fiber. Our partner’s fiber expertise and innovations will enable WMS to remain a quality service provider for not only years but decades to come.

Our partnership will enable Wyandotte to deliver high-capacity, low-latency connectivity to nearly 25,000 residents. By providing both the fiber technology and expertise, our partner will enable nearly 13,000 homes and more than 700 commercial buildings to have access to a new network with up to 10 Gigabits per seconds of internet, IP video and smart home services.

Further, the city’s municipal services will be able to offer a variety of new services while generating significant opex savings, and the new IPTV solution will use a pay-as-you-grow model, enabling WMS to launch new services without risking capex. A passive outside plant design will also reduce truck rolls and increase system reliability.

As a result, our partnership-driven broadband upgrade project will have a positive economic impact on the community, significantly enhance services for residents and businesses, and future-proof Wyandotte’s technology infrastructure for years to come.

Paul LaManes is General Manager, City of Wyandotte Department of Municipal Services. Tom McLaughlin is Senior Vice President, Service Providers at CommScope. This piece is exclusive to Broadband Breakfast.

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

Expert Opinion

Kate Forscey: Mobile Broadband Gap Needs to Be Remedied, Too

A recent study by CostQuest suggests that 37,000 more towers are needed to bring mobile coverage up to speed nationwide.

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The author of this Expert Opinion is Kate Forscey, contributing fellow for the Digital Progress Institute

It’s no longer a question: Whether it’s launching a new business, keeping up with friends, or finding the cheapest gas station nearby, the Internet is quintessential to the extent we don’t even think twice—until we don’t have it.

While Internet in America’s cities and suburbs weathered COVID’s storm, rural and low-income Americans have struggled to get any Internet access for decades.  The well-known stories of parents taking their kids to McDonald’s parking lots to do their homework haven’t ended—far too many Americans still lack access to the broadband they need.

The federal government, however, is taking steps to change the story.  The FCC’s Universal Service Fund has awarded billion dollars to deploy fiber and fixed wireless service to unserved areas through an alphabet soup of programs like the ACAM, the CAF, the HCLS, and the CAF BLS.  The most prominent of these is the Rural Digital Opportunity Fund that auctioned off $9.2 billion in federal support to connect 5.2 million unserved homes with high-speed broadband.

Congress has stepped up, too, with the bipartisan Infrastructure, Investment, and Jobs Act.  That legislation sent $42.45 billion for states to build out fixed, high-speed broadband.  In addition, Congress created the Affordable Connectivity Program, allocating $14.2 billion to reduce the cost of broadband for low-income households.

Policymakers recognize the problem and their responsibility to do something, and they are taking action on a bipartisan basis.  This is good.  But it’s not enough.  All of this funding is directed at one broadband gap—fixed connections to the home.

Mobile connectivity gap remains unresolved

There is another broadband gap—mobile connectivity—that’s unresolved.  A recent study by CostQuest suggests that 37,000 more towers are needed to bring mobile coverage up to speed nationwide.

Mobile broadband is central to the daily goings-on of families and businesses as we leave our houses with the fading of the pandemic.  That’s especially true for rural communities where commutes are longer, educational opportunities are sparse, and precision agriculture is necessary to stay in business.

To be fair, work is underway.  The FCC allocated $9 billion in 2020 for its 5G Fund, a support program to bring high-speed mobile connectivity to unserved Americans.  But that’s only a fraction of the funding needed to close the mobile gap.  And the FCC cannot move forward with the 5G Fund until it finishes updating its broadband coverage maps, which it’s been working on since 2019 and should be ready this fall.

So what to do?  Well, the FCC can move forward with its 5G Fund.  The auction model for that fund, as the Commission has proposed, would work—the RDOF used a similar model, costing the federal government $6.8 billion less than the FCC originally estimated.  And that $6.8 billion in savings could be redirected to the 5G Fund now that Congress is working to close the fixed-broadband gap.  The only downside is that the 5G Fund is a long-term solution—it will likely take several years before the funding is awarded.

Private companies are bringing new solutions to bear

In the interim, private companies are bringing innovative solutions to bear.  For example, AST SpaceMobile is building the first space-based cellular broadband network, allowing existing mobile phones to jump seamlessly from their terrestrial service to the company’s satellites and back again.  If the FCC were to fully authorize the service, it could expand the reach of existing towers and lower the cost of building out 5G to the far reaches of America.

Following in AST’s footsteps, SpaceX’s Starlink just announced a technology partnership with T-Mobile to enable connectivity to mobile phones in areas that don’t currently have access. Amazon’s Project Kuiper has similarly partnered with Verizon to extend the reach of mobile networks.

The advantage of these immediate solutions is they don’t require granular mapping or government funding to get started—they just need the FCC’s okay.  And while they don’t solve the problem entirely (satellite service works much better in Kansas cornfields than in the forested hills and hollers of West Virginia), they can quickly close the mobile gap where they do work well.

I remain hopeful that we can and will close the mobile gap.  Just as Congress and the FCC have relied on a variety of solutions to connect every household, we’ll need a multi-pronged approach to bring mobile connectivity to every American.  That means moving forward on government solutions like the 5G Fund as well as private solutions that give companies the flexibility to serve new customers.

Connectivity is having a bipartisan moment—let’s make it last.

Kate Forscey is a contributing fellow for the Digital Progress Institute and principal and founder of KRF Strategies LLC. She has served as senior technology policy advisor for Congresswoman Anna G. Eshoo and policy counsel at Public Knowledge. This piece is exclusive to Broadband Breakfast.

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 Mapping & Data

Kirsten Compitello: The Need for a Digital Equity Focus on Broadband Mapping

Incorporating equitable processes and outcomes from the start is crucial to avoid perpetuating continued inequalities.

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The author of this Expert Opinion is Kirsten Compitello, National Broadband Digital Equity Director at Michael Baker International

Broadband for all is in the spotlight right now, and closing the digital divide is recognized as a national priority. The divide goes far beyond access and touches issues of costs, ownership, culture, awareness, skills, and more. As we enter into a period of major statewide planning and deployment efforts, incorporating equitable processes and outcomes from the start is crucial to avoid perpetuating continued inequalities in access, adoption, and literacy.

Digital equity is not just a value statement: it’s a commitment to inclusive and equitable decision making at every stage of broadband deployment, from planning to service delivery.

Ensuring equitable representation at the table

Embedding digital equity analysis into mapping is especially critical at this moment in time as we prepare for historic broadband funding. This funding is an opportunity to rebalance systemic patterns of exclusion and ensure rapidly deployed planning and implementation funds are fairly dispersed.

The Digital Equity Act provides $2.75 billion to establish three grant programs that promote digital equity and inclusion, including the State Digital Equity Planning Grant Program, a $60 million grant program for states and territories to develop digital equity plans. In creating these Statewide Digital Equity Plans, extensive outreach to and collaboration with underserved, unserved and historically marginalized populations will prove critical. These discussions will be much more informative and effective in guiding successful policies, programs and projects if they are rooted in clear understanding of social, economic and environmental patterns alongside broadband access maps.

Documenting the effects of digital exclusion

Access is not an equal term: reducing it simply to speed of service available neglects the social and economic complexities that determine how and where users are affected by a lack of broadband. In short, mapping where the infrastructure exists only tells part of the story. Data analysis needs to layer in demographic and economic information in order to reveal patterns of exclusion and identify root causes.

To better understand community impacts, our team at Michael Baker developed data visualization tools such as a Digital Equity Atlas which takes the next step toward analyzing how broadband gaps disproportionately impact segments of the population. The methodology looks at Title VI and Environmental Justice data to reveal where poor connectivity correlates to social factors including low income, senior populations, English as a Second Language, households without a vehicle and more. As an example, the Southwestern Pennsylvania Commission leveraged the Digital Equity Atlas to prioritize new broadband expansion projects that stand to benefit the greatest number of at-risk or marginalized households. These households should not be last in line to see broadband investment finally bringing greater connectivity and opportunities to their doorsteps.

Fulfilling Broadband Equity, Access, and Deployment program requirements

Federal reporting requirements for upcoming Investment in Infrastructure and Jobs Act funding call for a proven and documented understanding and analysis of digital equity needs, from planning to projects in the ground.

The IIJA’s Broadband Equity, Access and Deployment Program provides $42.45 billion to expand broadband access by funding planning, infrastructure deployment and adoption programs across the country. Statewide Five-Year Action Plans, funded through this program, will require government agencies and their partners to take an integrated digital equity approach.

From planning through the ensuing reporting requirements, establishing digital equity strategies and a clear rubric for measuring success in achieving digital equity goals is a must for agencies. These entities must demonstrate how projects funded through BEAD improve digital equity. A strong data-driven baseline – such as the Digital Equity Atlas – will be a necessary starting point for agencies to track and monitor the effect of each new deployment on surrounding households. These data-driven metrics will also be a win for state and local governments to tell the story of their successes with clear data to back it up.

Setting a goal for sustainable inclusivity

As the consumption of internet content continues to rise and as broadband for all projects bring connectivity to the unserved, baseline expectations for broadband service and speed will only continue to grow. If we aren’t careful, new categories of have-nots will emerge: for example, those who pay high fees for minimum speeds versus those with lower fees for premier plans and Gig speeds. The currently unserved will gain access to service, but many will continue to struggle with basic internet skills, navigating through complex terms of service, or even simply finding time to schedule installation without missing a day of work.

To create a truly equitable society, everyone – no matter age, ability, location or status – needs access to affordable and reliable broadband; internet-connected devices; education on digital technology and best use practices; tech support and online resources that help users participate, collaborate and work independently.

By grounding our planning in equitable practices from the very first step, we can help to ensure that everyone is able to benefit from Internet for All.

Kirsten Compitello, AICP, is the National Broadband Digital Equity Director at Michael Baker International. This piece is exclusive to Broadband Breakfast.

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

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Broadband's Impact

Dianne Crocker: Recession Fears Have Real Estate Market Forecasters Hitting the Reset Button

Growing fears of recession trigger pullback on previous rosy forecasts.

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The author of this Expert Opinion is Dianne Crocker, Principal Analyst for LightBox

The lyrics to “Same As It Ever Was” by the Talking Heads certainly don’t apply to how 2022 is playing out in the commercial real estate market. Two quarters of negative economic growth has put a damper on market sentiment and triggered fears that the U.S. economy is heading for a recession. By midyear, market analysts were taking a good, hard look at their rosy forecasts from the start of the New Year and redrawing the lines.

Once upon a time…

At the start of 2022, forecasters were bullishly predicting that commercial real estate investment and lending levels would be nearly as good as 2021. This was significant, considering that 2021 set new records for deal-making and lending volume as the debt and equity capital amassed during the pandemic while looking for a home in U.S. commercial real estate.

What a difference a few quarters have made. Virtually, all the predictions that started the New Year were obsolete by mid-summer. The abrupt shift in market conditions is palpable and surprised just about everyone. Now, markets are reaching an inflection point that is in sharp contrast with the strong rebound of last year.

The two I’s: Inflation and interest rates

At the core of the recent upset in market sentiment is the persistence of high inflation, which seems to be ignoring all attempts by the Federal Reserve to raise interest rates and bring prices down. Higher inflation is having a ripple effect throughout the economy, pushing up the costs of construction materials, energy, and consumer goods. Among the notable economic indicators showing stress at mid-year was the GDP, which fell for the second consecutive quarter, and the Consumer Price Index, which jumped 9.1% year-over-year in June – the highest increase in about four decades.

In July, the CPI fell to 8.5%, an encouraging sign that inflation was beginning to stabilize. By the latest August report from LightBox, however, hopes were dashed when the CPI showed little improvement, holding firm at a still high of 8.3%.

The market is responding to a higher cost of capital as lenders tap the brakes. As the cost of capital rises with each interest rate hike and concerns of a recession intensify, many large U.S. financial institutions are pulling back on their loan originations for the rest of 2022 and into 2023. This change in tenor is a significant shift, given that 2021 was a record-breaking year for commercial real estate lending. Many lenders have already shifted to a more defensive underwriting position as they look to mitigate risks.

The Mortgage Bankers Association, which had previously predicted that lending levels in 2022 would break the $1 trillion mark for the first time revised their forecast downward in mid-July. By year-end, the MBA now expects volume to be a significant 18% below 2021 levels—and one-third lower than the bullish forecast made in February. Now, investment activity is cooling as higher borrowing costs drive some buyers from the market.

In the investment world, transactions were down by 29% at midyear due to a thinning buyer pool as higher rates impact access to debt capital. Market volatility is causing investors, lenders, and owners to rethink strategies, reconsider assumptions, and prepare for possible disruption.

Looking ahead to year-end and 2023

The rapid and diverse shifts in the market make for an uncertain forecast and certainly a more cautious investment environment. The battle between inflation and interest rates will continue over the near term. As LightBox’s investor, lender, valuation, and environmental due diligence clients move toward the 4th quarter—typically the busiest quarter of the year–unprecedented volatility is driving them to recalibrate and reforecast given recent market developments.

Continued softness in transaction volume is likely to continue as rates and valuations establish a new equilibrium. If property prices begin to level out, there will be more pressure on buyers to consider how to improve a property to get their return on investment. The next chapter of the commercial real estate market will be defined by how long inflation sticks around, how high interest rates go, and whether the economy slips into a recession (and how deeply). The greatest areas of opportunity will be found in asset classes like office and retail that are evolving away from traditional uses and morphing to meet the needs of today’s market. Until barometers stabilize, it’s important to rethink assumptions, watch developments, and recalibrate as necessary.

Dianne Crocker is the Principal Analyst for LightBox, delivering strategic analytics, best practices in risk management, market intelligence reports, educational seminars, and customized research for stakeholders in commercial real estate deals. She is a highly respected expert on commercial real estate market trends. This piece is exclusive to Broadband Breakfast.

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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