Rural Internet Access Committee

Transcription

1 Rural Internet Access Committee Minutes from the Meeting of Monday, July 30, 2018 I. Welcome and Roll Call by Chair Kallaus The meeting was called to order by Chair Kallaus, at 6:30 p.m., in the Community Room, at Wildwood City Hall. A roll call of members was conducted, with the following individuals being in attendance: Committee Members: Rick Kallaus Deb Trunko Scott Jackson Nancy Hitzeman (arrived at 6:49 pm) Council Member Liaisons: Larry McGowen Cheryl Jordan City Staff: Director of Planning and Parks Joe Vujnich Assistant Director of Planning and Parks Kathy Arnett Wireless Providers: Chris Bay Bays ET Nathan Stooke - Wisper ISP David Crabtree Wisper ISP Chair Kallaus welcomed Scott Jackson, the Committee s newest member. Then members of the Committee introduced themselves. II. Approval of Minutes from the Meeting of April 5, 2018 A motion was made by Committee Member Trunko, seconded by Chair Kallaus, to approve the minutes. A voice vote was taken on the motion and, hearing no objections, the motion was declared passed by the Chair.

2 III. Presentation by Joanne Hovis of CTC Technology and Energy The Committee had requested a nationally renowned consultant in the field of internet broadband service to rural areas attend tonight s meeting to discuss the industry and a suggested approach for Wildwood. To this end, Joanne Hovis, of CTC Technology and Energy, was in attendance at the meeting. Ms. Hovis is president of CTC Technology & Energy, where she directs the firm s work in network business planning; market analysis; financial modeling, policy, and strategy; and management consulting. She advises public sector clients regarding how to build strategy and opportunity for public private partnerships in broadband. She led the CTC teams that developed first-of-their-kind partnerships for the Commonwealth of Kentucky; the City of Santa Cruz, California; the City of Westminster, Maryland; rural Garrett County, Maryland; and the Champaign- Urbana Big Broadband Consortium. Ms. Hovis co-authored The Emerging World of Broadband Public Private Partnerships: A Business Strategy and Legal Guide, which was published by the Benton Foundation. Director of Planning Vujnich introduced Ms. Hovis, who began by asking attendees in the audience to outline why they are here and what they re looking for in terms of internet service. A few members noted issues such as, inability to work from home, inability to conduct online gaming, and line-of-sight issues, which makes the City s contract services inaccessible. Ms. Hovis noted internet access and affordability is a national issue, but terrain and semirural areas make the issue even more challenging. She focused her talk on a network business model and partnership strategies. She noted the advent of commercial internet was in the mid-1990 s. Therefore, it has only been about twenty-two (22) years, since public internet arose. The economy and democracy have both been transformed by internet. Its impacts and benefits cannot even be conceived what it will be in another twenty (20) years. Ms. Hovis reviewed the speeds at the beginning of the internet (50 kbps) up to future goals of 1 Gbps. Internet began as dial-up over copper lines and then the development of data modernized, which changed the industry. The cable industry recognized the potential and used its platform of networks to provide internet access via cable modem development. This adaptation was the advent of the broadband era, in approximately Telephone companies provided DSL, with changes to equipment on either end, but the challenge of DSL is its speeds will never reach the levels of cable and other technologies. The issue, in areas such as Wildwood, is both telephone and cable companies are not expanding in rural areas because of economics. Ms. Hovis believes that fiber to the premises is future-proven and scalable and the best option for Wildwood. Fiber optics have potential that can accommodate more speed and capacity than other technologies, but she hasn t seen this technology yet in rural areas. Ms. Hovis noted wireless technology can potentially fill a large number of gaps in the availability of internet through the use of both mobile wireless technology (smartphones) and fixed wireless technology (Bays ET and Wisper ISP). There is not Page 2 of 5

3 enough bandwidth in mobile wireless to meet the needs in the future. 5G technology is not yet imminent and it is inconceivable without adequate equipment and generally needs line-of-sight. 5G technology relies on fiber and towers for an underlying backhaul infrastructure. Transmission service over power lines is not a viable broadband service, based upon unsuccessful trials and a lack of speed. Space X technology and other similar technologies come and go and are not long-term or fast, nor reliable. They are not practical solutions for the United States. Ms. Hovis noted there is no magic bullet and the City will need to do the hard work and build the infrastructure. Ms. Hovis then reviewed strategies, including a public-private collaboration. The City could build rings of fiber optics to make it more viable for wireless providers to provide reliable backhaul, just like building major roads. A business case could be built where public sector uses benefit from internal savings and efficiencies. She then provided information on the basic financial business case and outlined how to analyze the Phase 1 financial case for public fiber, including: scalability and hedging against cost increases over time; internal operations and operational efficiencies; emergency response and disaster recovery; regional collaboration; smart applications; and community resilience. If the City owns its own infrastructure, such allows for less impact on increase in technologies. Phase 2 would include routing fiber to key development areas, such as, business parks, historic downtowns, etc. She then cited the case study of Westminster, Maryland, where the community owned just the infrastructure and then partnered with a private company for equipment to light the fiber, marketing and sales, customer service, and billing. The third phase in this type of collaboration is the private partner leases services to ISPs for expansion to homes and small businesses. Ms. Hovis then cited the case study of Holly Springs, North Carolina, which is a similar community to Wildwood, including being a fast growing, exurban community. This area completed a public deployment and ownership of the backbone fiber and the private sector followed with service to residences and businesses. This community did everything right, in her opinion, and worked through Phases 1 and 2. The City did not just jump into Phase 3, which can be problematic. Ms. Hovis also gave information on a case study in Garrett County, Maryland. This area is in Appalachia and had 3,000 unserved homes. This County gave a one-time grant to the private sector, which operates the network, but is County-owned. If the private company fails, the County takes back the network and finds a new private partner. In a similar case, the State of Delaware appropriated several million dollars and put out a Request For Proposals (RFP) for a public-private partnership to build infrastructure and provide service. Discussion was then held regarding the following: the practical way to apply these lessons to Wildwood; the approach where Wildwood invests more in fiber and less on poles. Bays has reached point where it needs fiber more than poles. Wisper agrees that a mix is necessary, but some fiber installation is appropriate; the question of if there is a broadband plan for the rural areas; the challenge of economics; the need to make a Page 3 of 5

4 strategic long-term plan; the intent to add conduit in new developments, so addition of fiber can happen later at less cost, but do it strategically; the question if the municipality can be in the internet business with the revised State law; the discrepancy between where there is infrastructure and where the network should be built; the best case scenario that fiber installation costs would be approximately $10,000 a mile, but can be many times that depending upon how built. Downtown St. Louis costs are $32,000 per mile; the estimate that in our area the cost would be approximately $20,000 a mile, but would also need to leverage AmerenMissouri for cooperation; the need to map out the existing network and determine where possibilities for fiber installation exist to provide service; the desire to build a ring of fiber using stage strategy to spread out costs over time; the issue that cable companies are only expanding at opportunistic times, all across the nation, not just here; the reclamation of copper by mobile providers is a concern in the future; the availability of AT&T home-base for rural areas (example provided off St. Paul Road and Ridge Road Area), including eliminated landline provides service to 100 Gb limit and costs about $200 a month; the first steps Ms. Hovis recommends the City consider the following steps she outlined, including review of current locations and spending, reviewing cost for infrastructure to those areas, and where private partners need service; the potential for starting to build fiber from the installed towers and use millimeter wave technology to bring in gig service to the neighborhood; the City s only internet cost, which is at City Hall, so no leverage available in municipal expenditures; the concern with wireless service slowing down with more customers, given broadband is shared; the potential for using the abandoned gas lines for adding infrastructure at less cost; the satellite industry, which may improve technology, but is generally expensive and unreliable; and the potential for a rural internet cooperative, since rural electric coops are providing great internet access to their rural areas, but no cooperative in our area. Ms. Hovis noted a rural cooperatives can be effective (cited a case study in Minnesota), but are not simple to organize and start. IV. Brief Updates of Coverage and Service Rollouts to Rural Areas from Representatives of Bays ET and Wisper ISP a. Update on Bays ET s Network South Half of the City Chris Bay, with Bays ET Wireless, gave an update on his company s efforts, first noting a number of millimeter wave backhauls have been added. Fiber has been deployed to home in a Catawissa test case and is working well. The project included 14,000 feet of fiber and cost $100 per home. His company is testing linear wave access service, but has found it doesn t get far and struggles in the rain. This service is difficult in Wildwood because access is limited through the trees. Mr. Bay is proposing different solutions in different neighborhoods and noted he has worked out a lease on fiber through Wildwood, which goes along State Route 100 and along Old Manchester Road. The City will soon be installing two (2) new poles at Rocky Ridge and Wild Horse Ridge Estates Subdivisions, which will assist with service in this area. Page 4 of 5

5 Discussion was then held regarding the following: the timeframe of placing a new pole in Hawks Rest, but property owners were opposed, so it was delayed. Committee Member Hitzeman noted that is her subdivision and she will assist in discussing the need and potential locations with her neighbors. b. Update on Wisper ISP s Network North Half of the City Nathan Stooke, with Wisper ISP, gave an update on his company s efforts, noting the Babler State Park tower is finally fully deployed. Wisper ISP is in the process of upgrading its other equipment. Currently, they have three (3) customers from the new tower installation, which is less than they hoped, but believes they are making progress. Mr. Stooke noted they are looking at equipment upgrades again on the towers. They recently resolved an issue with its telephone system, which led to six (6) months of issues. He cited the need to have fiber installed in certain areas, his company s current work on evaluating more customers for new service, and the need to provide service on the west side of Babler State Park. Discussion was then held regarding the following: if a site study done at Babler Woods Road, which Mr. Stooke will check; and the need for plans of each subdivision to bring appropriate service. V. Other Items for Consideration None VI. Public Comments A homeowner in the Homestead Estates Subdivision asked if they could expect new speed with the new Babler State Park tower deployment. Wisper representatives noted speeds would be increased and they will make sure he has them. VII. Closing Remarks and Adjournment A motion was made by Committee Member Trunko, seconded by Committee Member Jackson, to adjourn the meeting. There being no further business, the meeting was adjourned by Chair Kallaus at 8:59 p.m. Page 5 of 5