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Nice Try: Media Sells Rural Massachusetts Residents on Fiber Broadband They Won’t Get

For the past two years, we’ve watched a lot of expansive fiber broadband projects get promoted by local media as broadband nirvana for individual homes and businesses that are either stuck with molasses-slow DSL or no broadband at all. Now, we’ve found another, sold by Springfield, Mass. media as salvation from Verizon’s ‘Don’t Care’ DSL for western Massachusetts.  But will the 1,300 miles of fiber actually reach the homes that need a broadband boost?

http://www.phillipdampier.com/video/WSHM Springfield Broadband in Berkshires 7-26-11.mp4

WSHM-TV in Springfield covered the start of MassBroadband 123′s fiber optic project as the solution to rural broadband woes in western Massachusetts.  But most residents won’t actually get to use the new network, at least initially.  (2 minutes)

Last month, Gov. Duval Patrick joined public officials and firefighters at the Sandisfield Fire Department to kick-off construction of the MassBroadband 123 fiber-optic network project to expand broadband access to more than 120 communities in western and north central Massachusetts.

MassBroadband 123 Service Area (click to enlarge)

“For too long, families and businesses in western Massachusetts have lived without reliable and affordable high-speed Internet access,” said Governor Patrick. “Today, as we commence the installation of more than 1,000 miles of fiber-optic cable across the region, we start the critical final step in delivering broadband access to everyone. The digital divide in Massachusetts is about to close.”

Don’t hold your breath.

Don’t get me wrong.  The Massachusetts Broadband Institute means well.  Judith Dumont, the group’s director, is well-aware of the challenges rural Massachusetts has getting 21st century broadband.  She’s helping to oversee the construction of an enormous middle-mile, fiber backbone network that will eventually reach those ten dozen communities.  But much of the funding for the project precludes the possibility of directly wiring that fiber to the people who actually need it.  The incumbent providers’ lobbyists have seen to that, broadly warning it would represent ISP Socialism to allow government money to deliver service to homes and businesses — customers they themselves claim to be committed to serve.  But ask any resident in Sandisfield how well they manage that.

Gov. Patrick splices fiber cable at inauguration ceremony for fiber expansion project. (Courtesy: MBI)

A good part of upgraded broadband on the way in the Berkshires will be provided to government institutions like local government, public safety, schools, and libraries.  There is nothing wrong with that either, but when local media blurs this distinction into belief fiber-fast Internet access is on the way to Mr. & Mrs. Jones living on Maple Street, they do a real disservice to the cause for better broadband.

Dumont optimistically believes that opening the state’s fiber network to incumbent providers on a wholesale basis will dramatically help the pervasive problem of reaching rural customers.  Unfortunately, this has simply not been our observed experience watching these projects develop.  The “last mile” problem doesn’t get solved with the existence of a middle mile network, because providers are rarely willing to invest in the construction costs to wire the unwired.  Political and business matters too often get in the way.

Cable companies frequently boycott participation in these networks, and phone companies like Verizon Wireless -may- utilize them for backhaul connectivity to their cell towers, but don’t expect to see lightning-fast Verizon FiOS fiber to the home service springing up anytime soon in western Massachusetts, even if fiber connectivity is provided just a mile or so up the street.  If they didn’t build it themselves, many providers just are not interested.

“Last mile” is often the most expensive component in a broadband network.  It’s the part of the project that requires digging up streets and yards, stringing cables across phone poles, and literally wiring the inside and outside of individual homes and businesses.  Verizon FiOS works in densely populated areas where large numbers of potential customers are likely to deliver a quick return on investment in the network.  But Wall Street has always disagreed, declaring the capital costs too high to make sense.  AT&T won’t even match Verizon’s commitment, relying instead on fiber-to-the-neighborhood networks that deliver access over a more modern type of DSL, delivered on fiber to copper wire phone lines already in place.  That’s their way of not spending money rebuilding their own last mile network.

Wireless ISPs are expected to take advantage of the state's new middle-mile network.

If any part of the broadband network in rural America needed subsidies, the “last mile” is it.  But Washington routinely delivers the bulk of federal assistance to the construction of middle mile networks and institutional broadband that doesn’t deliver a single connection to a homeowner or business.  That suits incumbent providers just fine, judging from their lack of interest in applying for broadband subsidy funding made available two years ago and their hard lobbying against community broadband networks, or anything else smacking of “competition.”

Thus far, the limited grants that are available for “last mile” projects require substantial matching funds and are often limited to $50,000 — a ridiculously low amount to solve the “last mile” challenge.  Those trying are primarily fixed wireless providers valiantly attempting to serve the areas DSL and cable forgot, but deliver woefully slow speeds at incredibly high prices.  WiSpring, one such Wireless ISP, wants to expand coverage with the help of the new fiber network.  But their top advertised wireless speed for residential customers is 1.5Mbps, and that will set you back $100 a month after a $500 installation charge.  Oh, and their customer agreement limits use to 25GB per month with a $10/GB overlimit fee.  That’s hardly the kind of broadband solution a multi-million dollar fiber network should bring to individual consumers.  It’s as frustrating as filling a pool, one cup of water at a time, with an eye-dropper.

Now imagine if a quarter of the state’s $40 million investment in broadband — $10 million, was spent physically wiring individual homes with fiber broadband.  Would that make a bigger splash in the lives of ordinary consumers than a middle mile network they cannot directly access?  Is construction of a state-of-the-art fiber network a good investment when many of the providers scheduled to use it are Wireless ISPs delivering bandwidth suitable for e-mail and basic web browsing only?

In West Virginia, we learned last month the state is swimming in middle mile stimulus grant money it can’t spend fast enough on behalf of institutions — many who either already have super fast service or can’t afford the Cadillac pricing that represents the ongoing service charges not paid for by grant funds.  Is this a good way to spend tax dollars?

Communities large and small need to think big when it comes to broadband.  Building a middle mile network does not by itself solve the access problem.  It’s a fine start, but absolutely requires a follow-up commitment to solve the last mile problem.  Here are our recommendations:

  1. Demand the federal government eliminate restrictions on the kinds of network projects that can built with stimulus funds, especially those that prohibit investment in last-mile networks;
  2. Don’t believe for a moment large cable and telephone companies will bring better broadband to consumers just because you have a middle mile network.  Historically, they have lobbied hard against last-mile projects they do not own or control, and fund conservative political groups to oppose your community’s right to develop and govern your own broadband future;
  3. If incumbent providers won’t provide the service your community needs, consider exploring the possibility of doing it yourself.  Just as MBI contracts the wholesale part of its service out to a third party to administer, nobody says the village clerk has to be a billing agent for a community broadband service that directly serves your residents;
  4. Involve local citizens in rallying for better broadband instead of sitting around and waiting for the local phone or cable company to provide it.  They won’t.  It’s a simple matter of economics for them – will they get a sufficient return on their investment within five years? If not, you are not getting improved broadband.  That works for them but doesn’t work for your community, and providers have made it clear most of the networks they intend to build are already built.  That leaves a lot of communities behind.
  5. While wireless may be an answer for the most rural or difficult-to-reach homes, it is not a realistic solution for 21st century broadband inside village or town limits.  Wireless networks often lack the capacity to sustain the growing demand for multimedia, high-bandwidth content that is becoming more important for today’s online experience.  When a provider limits usage to 25GB a month, that’s a big problem for any community that will soon find itself stuck in a broadband swamp while the rest of the country passes it by.
  6. The biggest financial challenges seem to come to those who think small about broadband projects.  Don’t rely on yesterday’s technologies for tomorrow’s networks.  Fiber-based broadband will deliver the best bang for the buck and is infinitely upgradable.  That’s why rural phone companies and cooperative telecom providers are constructing fiber networks themselves.
http://www.phillipdampier.com/video/WGBY Springfield The State Were In Judith Dumont 7-11.mp4

WGBY-TV in Springfield talked with Judith Dumont about western Massachusetts’ broadband future.  (19 minutes)




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Other stories of interest:

  1. Australia: 90 Percent of Our Residents Will Have 100Mbps, Fiber to the Home Service Within 8 Years
  2. New York’s Southern Tier Closer to Securing High Speed Broadband for Rural Residents
  3. Missouri Governor Supports Proposal to Bring 95 Percent of State Residents High Speed Access
  4. Bray’s Back: Getting a Reality Check on West Virginia’s Broadband Picture
  5. Kinston Mayor Defends Broadband Duopoly Throwing Rural North Carolina Under the Bus

Currently there are 8 comments on this Article:

  1. Last Seen in Western Mass says:

    Bravo! Thank you for your astute summary.

    • Tim Newman says:

      Terrific analysis! This piece should be required reading for Governor Patrick.

      As you clearly point out, lobbying by the incumbents succeeded in getting the second round ARRA broadband grant rules re-written to virtually eliminate late mile projects. The MBI failed in their first round application and I can’t blame them for doing what they needed to do to succeed in round 2.
      You can make the argument that a middle mile network is better than nothing and might eventually lead to connectivity for all. But that argument is a stretch. There are other middle mile networks around the country funded with public money that have not had the desired effect.

      Much of the confusion in the local media here that suggests homes and businesses will be connected by the MBI project needs to be laid directly on the doorstep of the MBI itself. For whatever reasons, in their press releases and speeches, the MBI has blurred the outcome. They don’t exactly say they are building a last mile network, but they do imply a result of their efforts will be connecting tens of thousands of western Mass residents to high speed internet connections. True, sort of. Fixed wireless – which the MBI is touting as the solution – is no solution at all as you clearly understand. They are working hard with several fixed wireless providers to bring that level of service to the region so it seems that’s their idea of modern connectivity.

      What’s obviously needed is fiber-to-the-premises. Homes and businesses will only get fiber connections if someone other than the MBI steps up and gets the job done. Save some $50,000 planning and construction grants from the MBI, all the federal and state ear-marked money is being poured into the middle mile. It would not be fair to call it the bridge to nowhere, but it by no means insures that the residents and business that so desperately need 21st century connectivity will ever get it. Right now, a consortium of over 40 towns called WiredWest is planning a muni-coop to serve their member town. The project has tremendous support on the local level, but the project is not yet financed. WiredWest is the only organization that seems to fully understand the problem and is working to solve it the right way. If you’re not aware of WiredWest, their website is the place to go for information: wiredwest.net.

      Tim Newman
      Southfield, Mass

      • My personal suspicion and experience suggests this line-blurring comes in an effort to draw public support (and for politicians to win credit) from ordinary consumers/voters.

        I see this frequently in press coverage for various fiber projects that imply “better broadband” is on the way, but in fact turns out to be an institutional or educational project funded by tax dollars and strictly limited to keep it from reaching individual homes or businesses.

        I don’t mind improving institutional or educational broadband networks — they serve valuable purposes. But I intend to start holding feet to the fire when entities distort who these networks will ultimately benefit. Don’t pretend they will provide any level of service to consumers unless there is a direct last-mile component or agreement from an existing provider to deliver last-mile service.

        The good news: most middle-mile open access projects are open and forthcoming about the fact they want to sell to last mile providers, but admit there have been no takers. That is honest. It’s not at all surprising to me, since incumbent providers almost never use someone else’s network to deliver service.

        What we need is a stronger drive towards demanding taxpayer-supported networks actually deliver service… to taxpayers! I personally believe community broadband projects like WiredWest stand the best chance of actually delivering service where it is needed. Private providers have a long record of not being interested in delivering the service for economic reasons, and I’m not impressed with efforts to bribe them into doing it with incentives.

        What is going on in West Virginia is an even bigger travesty, as they hurry to find projects to throw leftover stimulus funding at. Meanwhile, end users are stuck with Frontier’s 1-3Mbps DSL service, where available. That’s all they are interested in building in large parts of the state. Institutional broadband customers are getting fiber fast broadband networks, but the recurring costs for service (not covered in the grant) are likely completely out of the realm of affordability for many smaller communities.

  2. RPNathhorst says:

    This is a clear piece of propaganda in favor of Big Telcom like Verizon:

    EVERYBODY in Western Massachusetts knows that MBI123 is the essential backbone to allow Western Massachusetts Towns to wire themselves for the FTTH Gigabyte speed broadband that Verizon and Comcast will not provide to us.

    Stop the cap is a transparent shill l for big telcom who will not live up to their responsibilities as public utilities and who are frightened the citizen owned broadband cooperative and Municipal networks will do what they are to lame to do.

    • ROFL!

      Apparently you didn’t actually read the piece (or this website). I don’t think the folks at Verizon or Comcast would consider us to be their BFF.

      Re-read the article and the other comments here and then get back to me.

      • RPNathhorst says:

        Phillip:

        I stand behind my defense of MBI123.

        Without it there is no opportunity to bring ftth to the residents of Western Massachusetts.

        WiredWest and individual communities are exploring municipal networks in individual communities financed by bond issues. This will bring Gigabyte fiber to individual residents quicker that waiting for stimulus money from the feds or for the incumbents to decide to use the broadband backbone (built with tax payers money) to charge western Massachusetts what ever the market will bare for using the tax payer financed backbone and inferior solutions like wireless or DSL. Remember wireless is not a workable solution in hilly western Massachusetts.

        Municipal broadband services serving individual communities from the MBI 123 backbone offer the best potential for providing both reasonably priced high speed broadband and other services like telephone and Cable TV to the residents of Western Massachusetts. It might even become a revenue source for individual small towns.

        Knocking MBI 123 is not productive or fair. Without the MBI Backbone there is no opportunity for municipal networks to get connected. It’s not the last mile but it is a BIG step along the way.
        Richard

        • Nobody is opposing MassBroadband 123. In fact, we’re big supporters of the fiber capacity in western Massachusetts, and nobody favors municipal providers more than we do.

          The issue here is how this network is being sold by the media as a direct provider of improved broadband. It is not. It is a middle mile network with a wholesale component open to “all-comers” which thus far has been a few Wireless ISPs (which we agree are wholly insufficient except in the most rural areas). Verizon and Comcast are hardly going to resell their services over this network, and government stimulus money has been kept out of last-mile projects far too often.

          That means WiredWest has to go the municipal bond route in a difficult economy (and watch the aforementioned companies demagogue that to death if they don’t attempt to seek legislative initiatives to ban such bond funding — we’ve seen that in enough states over the last few years.)

          Now imagine if public dollars were available through broadband stimulus to directly fund the last mile efforts of WiredWest and other providers. That automatically helps the long term success of the project by reducing capital expenses required to build it.

          What happens too often is that stimulus funds come with a ridiculous number of strings attached that limit how those dollars can be spent. Institutional broadband projects usually benefit from the largesse because they are off-limits to consumers and businesses and incumbent providers don’t consider them a threat.

          What has been happening in some states is broadband never gets to those who don’t have it, as enormous sums are spent to over-deliver a network to a library or school that will never be able to cover the monthly bills to run it (see our coverage of the mess in West Virginia).

          That means we need stimulus money for middle mile -and- last mile endeavors. So far, the available grants for last mile appear to be around $50,000 — a total pittance.

          As I wrote in the original piece, middle mile networks ARE important for all the reasons you stated. But you can’t build support for last mile projects and municipal bond initiatives if constituents believe the political overreach that the construction of the middle mile network has solved the problem. That was the only criticism we levied about the project (and the resulting media coverage).

          You can review our extensive coverage of community broadband by selecting “Issues” on the top menu bar, and then choosing “Community Networks.” You will see we are big supporters.

  3. Last Seen in Western Mass says:

    @RPNathorst,

    I think if you read the article again, you will find you are saying a lot of the same things as the author.

    As a longtime follower of this blog, I think I can accurately say it exists to *hold* the incumbents accountable; it is in no way a shill for the incumbents.

    The issue with Mass Broadband 123 that the author is raising, and which I agree with wholeheartedly, is that it is being sold to us as the final solution, which in fact it is not. There are already fiber backhaul providers in Massachusetts, and although increasing the backhaul capacity is wonderful, it will not have the same far-reaching consequences as using that money for last mile fiber would have had. However, the MBI was of course constrained by the NTIA guidelines, which were designed to limit competition for last mile for incumbents.







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