After A Decade Of Waiting For Verizon, Town Builds Itself Gigabit Fiber For $75 Per Month
from the if-you-build-it-they-will-come dept
Like many broadband black holes, Western Massachusetts has spent years asking regional duopolies for broadband. Towns like Leverett, Mass. literally took to hanging signs around town begging Verizon to install even the slowest DSL. Of course Verizon not only refused to install Western Massachusetts, they froze deployment of effectively all FiOS fiber upgrades, leaving a large number of towns and cities (including Boston, Baltimore, Alexandria, Buffalo) without next-gen broadband -- or in some cases broadband at all.But, unlike many areas, Western Massachusetts decided to do something about it. In 2012 Leverett voters approved borrowing $3.6 million -- or roughly $1,900 per resident -- to deliver fiber to 800 premises. The initiative would be part of the Massachusetts Broadband Institute's MassBroadband 123 "middle mile" network, a stimulus-funded project that spent the last few years running 1,200 miles of fiber-optic network connecting 123 communties. That project feeds the town of Leverett's new, community owned ISP LeverettNet, giving a town that once didn't have DSL gigabit speeds for $75 a month:
"LeverettNet currently charges $24.95 per month for an internet-only, 1 gigabit per second connection. There’s also a $49.95 monthly cost to cover the maintenance for the Leverett Municipal Light Plant (LMLP), the governmental entity that builds and operates the town’s fiber infrastructure, bringing the cost to about $75 for internet-only subscribers, a cut above Google Fiber’s $70 monthly price for its 1 gigabit service.And while most incumbent ISPs are abusing the lack of competition to raise rates in January, Leverettnet (alongside Crocker Communications, which helps run the ISP business itself) has announced it's dropping the cost of broadband and phone services starting next month. Uptake rate has been phenomenal, with eighty-one percent of households signing up for service. And what's more, despite all of the hand-wringing on some fronts (read: AT&T, Verizon, Comcast) about community broadband being an irresponsible fiscal nightmare, locals will actually see lower taxes than expected:
However, the Leverett Broadband Committee notes that the LMLP maintenance costs are divided between the number of subscribers, and could be lowered as more households subscribe, meaning it could one day reach a price that’s equal to or less than Google Fiber."
"The median residence will also see a lower-than-anticipated impact on property taxes, with $219 per year for the financing bond to build the network, much lower than the original estimate of close to $300 per year. The light plant, along with Holyoke Gas and Electric, which provides network operation and maintenance, and Crocker Communications of Greenfield, providing the high-speed Internet and phone service, collaborated to review the finances and usage and determined that the adjustments could be made."Granted in twenty states, your town or city wouldn't be able to do this, since incumbent providers have quite literally paid state legislatures to write laws banning this kind of effort, even if incumbent ISPs have refused to service the area. This is also the sort of thing Presidential candidates like Marco Rubio hope to put an end to, without offering an alternative solution for broadband coverage gaps. But as Leverettnet shows, there's an obvious role for private/public partnerships in shoring up broadband coverage gaps -- especially in areas incumbent providers couldn't care less about.
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Filed Under: broadband, gigabit internet, leverett, massachusetts, municipal broadband
Companies: leverettnet
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'Leave it to the professionals'
Meanwhile the larger cable companies insist that they need 'incentives', either directly or indirectly, in amounts that make $3.6 million look like pocket change, take years spending the incentives on exec bonsus, fail to deliver as a result, and then buy off the right people so that they're let off the hook for failing to meet the contract terms.
Yup, can't possibly imagine why the major cable companies might be worried about smaller operations like this given the notable difference in cost and build-out speed...
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Re: 'Leave it to the professionals'
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Re: Re: 'Leave it to the professionals'
Leverett voter passed the Municipal Lighting Plant and bond issue by well over 90% margin and there is no interest by either Verizon or Comcast in serving Leverett. We run town with the town meeting system of government there are no politicians for Verizon and Comcast to buy. Also Comcast does not do business in Leverett and never has and Verizon has essentially abandoned their land lines in town and doesn't provide cell service.
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Re: 'Leave it to the professionals'
Some more detail on Leverett: Leverett turned on its fiber last Spring and is providing service for all its customers. The data service is not throttled but depends on backhaul limits coming into town. It is a FTTH Active Ethernet P2P system with a fiber homerun from the premise to the hub. Their ultimate bandwidth is determined by the fiscal limits. As of Summer 2015, Leverett had a take rate of 89%, getting to that level in less than a year.
The Reinvestment Act, funded by the feds and the state, did great 2 things for unserved Western and Central MA towns including Leverett: 1) provided a backbone to the Internet, in this case, in Springfield MA, and 2) provided middle-mile backhaul, 4-8 fibers, to one or more Community access points in each of the 45 unserved towns. Leveret's network would have been much more difficult logistically and more expensive without that. Then, Leverett took it upon itself to fund a a network build.
MBI, the state agency cited above, has been funded to assist these 45 towns with partial grants. I do not believe that Leverett has yet seen much if any of that money. The money allocated for them, when they receive it in full, would amount to only about 1/3 of the total cost for the build. http://broadband.masstech.org/building-networks/last-mile/program-unserved-towns The difficulty is that many of these small towns do not have the wealth or income to afford the remaining cost. Leverett has about 42 miles of roads and a little more than 800 premises and is one of the larger towns being helped by the Commonwealth. It had no internet other than dial-up, some satellite and some cell service. Cell access in town was spotty and wireline copper phone service often had noise on the line in inclement weather. This is typical of the other 44 towns interested in participating in the MBI project/funding. ( I add this as most folks do not consider MA as being at all rural and remote.) But Leverett's multi-million dollar investment, even after help from the state, will bring its citizens into a telecomm environment that most in our country take for granted.
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Easy fix.
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Re: Easy fix.
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Housing Prices
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I don't know if my area is one of those with state laws but I do know it's a chore getting any bond election passed. If the locals won't support bonds for building and/or improving our schools, police & fire stations, and streets, then it's hard to imagine them voting in a bond for fiber.
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What isn't mentioned in this story is how the local media covered this in the early stages (and barely) and once Comcast and Verizon started trying to push back/bully the town (or so someone who lives in the town told me) in an effort to stop this, any and all local media coverage up and vanished from anything but the most local newspaper to that town. I.E. the TV stations talked about it in the very early stages, Big Cable (according to my friend) started to push back against the town, and the TV stations went up and quiet on the whole thing.
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Service
I remember in the 70s when, if it rained there was wso much line noise that a 300 baud acousting couple modem was nearly worthless.
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Re: Service
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When I ran a BBS, I had the same problem, but what was funny was the technician was the one who suggested that it may have been the rain, and that he moved me to a higher place in the telephone cabinet. My phone line after he moved my connection had never been cleaner, and I was easily pushing 48-56kbps on that line. At least until AT&T started calling me with offers for a special "digital" phone line that they were offering for folks running BBSs, modems, etc., on their networks, and I all-the-sudden ended up back at the bottom of the rack (I asked the technician where I was and he told me I was at the bottom, even though the previous technician had moved me up.)
My issues with AT&T and their digital line scam have been discussed here before. I only got relief when I switched from their service to cable telephone (shortly before abandoning my BBS in the mid to late 90s due to nobody calling any more.)
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The Power of Taxes
It is hard to evaluate the merits of an idea when the math is bad.
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Re: The Power of Taxes
We had to fight that not all that long ago here. Nothing changed and our property tax went up.
Still, I'd pay $94/m for gigabit connectivity. I'm paying almost that now for 50Mbps.
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Re: Re: The Power of Taxes
Schools tend to be the big thing around here...they account for quite a bit of our property tax, and every new bond or property tax increase that seems to get put in place tends to be one of those "its for the children bonds".
I don't have children, can't stand a good majority of them in my neighborhood, but I gladly pay those property taxes each year. I'd much rather pay for your kids to get the best education possible so that they get good jobs and make something of themselves. Keeps my property values up.
So long as everyone in the community has the option to subscribe, just like I have the option to have kids and send them to school, I'll gladly subsidize it so long as it has positive benefits to the community. What I have a problem with is when some politician somewhere decides that it would be great to build a park nobody in the community can go to except their buddies that elected them or when the money is wasted needlessly on something nobody wants or needs just to make the backers of the politicians happy. If they had a referendum, and a majority of the folks said yes, I'm good with it.
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(provided by Windstream)
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Re: The Power of Taxes
Because given the first paragraph of the article, I'm guessing the previous options all make $100 a month for that speed look like an amazing deal.
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If we are talking about true costs, including all the taxes, how much money has been spent on the Information Superhighway, or Broadband America, or Wiring America or Universal Access that we've been paying over the years to the telcos and the cable industry, in which the money was collected and then "lost" without actually doing the work. We've been paying for broadband improvements since 1995, and telephone improvements even longer and we've got very little to show for it (at least until Google showed up and scared the industry and government into actually improving their networks and regulating those who didn't.)
I'd love to see an accounting of the money spent there, to include in the costs of the legacy telecom and cable industry, but quite frankly I don't think we'll ever get those numbers.
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So, yeah, we don't live alone.
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Re: The Power of Taxes
If you want to do even better math, don't forget to subtract $80 - $150/month for cutting the cord of cable or satellite TV, landline phone service, etc. and replacing these with Internet options that will work just fine with gigabit Internet. There may be other opportunities in lowering cellular service options and better utilizing home that bandwidth at home. Think things like telecommuting, which can save a great deal in travel / vehicle expenses, remote medical monitoring / diagnostics, remote education, etc. These things can save many thousands of dollars, but require realistic broadband services to make them feasible. (As someone stuck with TWC 30Mb down / 5 Mb up for over $65/month, I'm drooling at the thought of this kind of service.)
To put gigabit service in perspective, someone with kind of bandwidth has 50 times more bandwidth than what is defined as 20 Mb/s "broadband" service, and that minimum service would likely cost around $50 per month if the local monopoly even deigned to make it available. That's $2,500 per month collected from every 50 bottom-of-the-barrel endpoints by large "service providers".
Gigabit service can replace a lot of other data services, and make possible many other services and business opportunities, and even assuming $100/month/endpoint, this is dirt cheap compared to other options. As for non-customers paying a small fee for this infrastructure upgrade, what can I say? They will probably more than make up for this in increased property value, plus when they start seeing what their neighbors are able to do with gigabit service, they will likely jump on this opportunity as well (lowering prices even further).
It's hard to evaluate the merits of an idea when the math is penny wise and pound foolish.
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Re: Re: The Power of Taxes
P.S. Out of curiosity, which industry is it that sends out "shills" to point out the true cost of services? Last I checked, it wasn't telecom or government.
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Also TechDescartes where are the sources for your numbers if I may ask?
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Not to mention that cities with good connections tend to attract technology companies or those who don't need a physical presence elsewhere to do their business. How much value does this add to the city?
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I went to UMass Amherst and Leverett was the next town over. Quite a few professors I knew (including Computer Science profs) had homes in Leverett and were just befuddled that they couldn't get anything better than dial-up out there (especially with the University so close).
When there is no choice, cost really isn't a major factor until it becomes 'insanely expensive'.
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New Mexico Mark isn't disagreeing with your math, he's saying there are larger issues that make the discrepancy you point out less significant. There will be an extra 20 bucks a month in property tax until the bond is paid off, and it's appropriate to mention that. But if you're going to look at that, it makes sense to look at all the other factors too.
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Fair enough, but also note they're signing people up in droves and the more they sign up spreads the cost of #2 & #3. Cutting those two in half gets them into the $60 total range. That's less than I pay for 1 Mb.
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And by the standards of nearly everywhere else in the country, that is an amazing deal. I'm lucky, and get gigabit for $70, but if I weren't, it's not like $95 would upset me.
When I first moved here, it was $150/mo for 250MBit, so EPB has been absolutely fantastic. They quadrupled my speed, and cut my bill in half.
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$24.95
Monthly maintenance fee?
$49.95
Monthly increase in taxes?
$18.25
Not having to deal with Comcast, Verizon or AT&T?
Priceless.
Some things money can buy, for a decent internet connection at reasonable rates, look local.
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Before there's competition in the area:
"It would not be feasible to upgrade our existing networks without drastically increasing price, as well as taking several years to manage. By the way, here's your biannual price increase."
The second actual competition shows up:
"Hey, turns out we were wrong, we can absolutely increase your connection speed, immediately, and temporarily decrease the price, so there's no need to go elsewhere for your service!"
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What is sad is that when companies fight the government and each other to buy up their competition, people still parrot the line "bigger company means better support." You know what they say about insanity, doing the same thing over and over again and expecting different results.
Every time I hear it, I have a Pavlovian response and roll my eyes even before they finish the statement. A friend was talking about how awesome it will be when AT&T owns Direct-TV, and how he will have better support from both AT&T and Direct-TV as a result, and I could just count the minutes between that statement and his overall disgust for the whole thing...he figured once he got AT&T to hook up his house with fiber, he was set...their immediate response...not available in your area, you get 1mbps DSL. Best they could offer him was a capped LTE network.
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That's REALLY impressive. EPB in Chattanooga, which offers similar service for a similar price (and is run EXTREMELY well), was pleased as punch when they hit 30% uptake. And they had to advertise *constantly*. Even now, just about six years after their first rollout, they still advertise all the time. (I don't know what their current figures are, but I suspect it must be at least 40% by now.)
This was their actual plan; I believe they figured it as breakeven at 20%, and hit that fairly quickly. Everything after that has been gravy, and it's working out real well.
It's interesting, wandering around Chattanooga with a laptop, because it's quite normal to have extremely high-quality free WiFi networks available. It's a slow process, but the Internet is becoming omnipresent here, like air. There's a fundamental scarcity most places, and that's not really true here anymore.
Anyway, my biggest takeaway was this: just building the network is normally not enough. You've also got to remind people you exist *all the time*. Switching away from other providers is difficult, and most people don't realize how bad their Internet is.
An 81% uptake is ... dayam. Things must have been BAD in Leverett.
Oh, and as an aside: muni fiber from the power company works out really well. Their purpose isn't pricing as high as possible, their purpose is serving their residents, so they can pass through the *real* pricing of bandwidth. The only scarcity is peak demand, not total usage. Bandwidth caps are a literal racket.
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Dial-up only. So the only way it could be worse is if there were no phone service at all.
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Unnecessary
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Re: Unnecessary
Would you have felt better if he'd said "at least one Presidential candidate"?
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Leverettnet
Leverett had a few Verizon DSL lines close to Amherst MA. Verizon is abandoning DSL and had no intention of extending fios to Leverett.
Comcast never served Leverett and had no interest in doing so because of the distance between houses.
Internet was available for Wild Blue and Hughes but you know how lousy that service is. TV was from Dish and DirecTV. So with the ~$100 a month for Leverettnet and the increase in property taxes I am saving approximately $150 to $200 a month for far better service. Even with the taxes. Remember We operate this network at cost as a town service and in 20 years the bonds will be paid off. We have maintenance and periodic upgrades built into the cost of service.
Verizon could not care less about this because they were not maintaining the legacy copper network in Leveret and now 81% of their complaining unhappy customers are off their back.
Of the other 19% of non subscribers more the 50% of these are either summer residences or vacant and up for sale.
Of the remaining house: In a town with Leverett's demographics houses come on the market do to owners passing away. So houses are vacant for extended periods while the estate gets settled. A lot of empty houses are being renovated in town to be placed on the market because high speed broadband make it worth doing.
So what's not to like?
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wildfire
So, hope it catches on like wildfire!
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