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Chelan PUD, Citizens, Ponder Fiber Expansion in Rural Washington

The Chelan Public Utility District in Washington began its county-wide fiber-optic network build. They have since passed some 80% of the county but are temporarily pausing expansion efforts. Chelan is a rural county and the network is not expected to break even for quite some time. In Washington, state law limits the powers of public utility districts to offer broadband. As with communities in Utah, these public sector entities are forced to operate an open access network and are unable to offer services directly. While the open access model is a great one for some communities (and one we encourage when the numbers work), it can be difficult to implement depending on local circumstances. The Wenatchee World recently covered the decision to hire a consultant to identify means of lowering costs. The network has cost $80 million to get to this point and will require an additional $40 million to connect the remaining 15-20%. The network can provide access to over 30,000 residents, businesses, and community anchors (schools, hospitals, muni facilities). Subscribers choose from a variety of service providers for services and take rates vary from 30%-60% depending on the area. The network is operating at a loss (probably due to a combination of the high costs of FTTH in rural areas, the low take rates, and lower revenues from operating on a purely wholesale basis). Residents were conflicted about the network's inability to pay for itself but a majority have continued to support it because they often have no other broadband options. However, the current economic climate has resulted in more concern about the costs. Chelan PUD has apparently covered the losses from broadband (as well as some sewer and water services) with the sales of surplus electricity on the wholesale market.

Chelan PUD, Citizens, Ponder Fiber Expansion in Rural Washington

The Chelan Public Utility District in Washington began its county-wide fiber-optic network build. They have since passed some 80% of the county but are temporarily pausing expansion efforts. Chelan is a rural county and the network is not expected to break even for quite some time. In Washington, state law limits the powers of public utility districts to offer broadband. As with communities in Utah, these public sector entities are forced to operate an open access network and are unable to offer services directly. While the open access model is a great one for some communities (and one we encourage when the numbers work), it can be difficult to implement depending on local circumstances. The Wenatchee World recently covered the decision to hire a consultant to identify means of lowering costs. The network has cost $80 million to get to this point and will require an additional $40 million to connect the remaining 15-20%. The network can provide access to over 30,000 residents, businesses, and community anchors (schools, hospitals, muni facilities). Subscribers choose from a variety of service providers for services and take rates vary from 30%-60% depending on the area. The network is operating at a loss (probably due to a combination of the high costs of FTTH in rural areas, the low take rates, and lower revenues from operating on a purely wholesale basis). Residents were conflicted about the network's inability to pay for itself but a majority have continued to support it because they often have no other broadband options. However, the current economic climate has resulted in more concern about the costs. Chelan PUD has apparently covered the losses from broadband (as well as some sewer and water services) with the sales of surplus electricity on the wholesale market.

Colorado's Least Populous County Wires Itself

Ran across this interesting story out of Silverton, Colorado - where Qwest has refused to provide a reliable telecommunications connection to the least populous county in Colorado. Recall that Qwest's refusal to offer redundancy in Minnesota's most rural County led to a total communications blackout for twelve hours, shutting down public safety and businesses alike. Silverton is the only town in rural San Juan County. The City is splitting the costs ($121K) of a new publicly owned fiber-optic loop with the County and apparently the State is offering a grant for the balance. As we emphasize time and time again, cities that move from leasing multiple lines from the incumbent to owning their network radically increase available speeds while cutting costs. Silverton estimates it will save 50% or more in its telecom expenditures. These savings will pile up over time because owning the network typically leads to decreasing costs over time whereas leasing lines offers much less control over future telecom budgets. But perhaps the more interesting aspect of this story is that San Juan County is the only County in the state not connected with fiber-optic lines. Qwest has:
a 10-year, $37 million contract to provide high-speed connectivity to every county seat in Colorado, forming a statewide network known as the Multi-use Network, or MNT.
To save money, Qwest is using a microwave (wireless) connection for San Juan County, which is far less reliable than would be a fiber-optic connection. For such a rural area, microwave might be a good secondary connection, offering a backup in the case of a fiber cut or natural disaster. However, making that the primary connection is what happens when Qwest is calling the shots. Qwest is not looking out for the interests of first responders, residents, or businesses in Silverton, it is looking for "a compelling business case" in their own words. And this is exactly why Qwest should not be in charge of essential infrastructure.

Colorado's Least Populous County Wires Itself

Ran across this interesting story out of Silverton, Colorado - where Qwest has refused to provide a reliable telecommunications connection to the least populous county in Colorado. Recall that Qwest's refusal to offer redundancy in Minnesota's most rural County led to a total communications blackout for twelve hours, shutting down public safety and businesses alike. Silverton is the only town in rural San Juan County. The City is splitting the costs ($121K) of a new publicly owned fiber-optic loop with the County and apparently the State is offering a grant for the balance. As we emphasize time and time again, cities that move from leasing multiple lines from the incumbent to owning their network radically increase available speeds while cutting costs. Silverton estimates it will save 50% or more in its telecom expenditures. These savings will pile up over time because owning the network typically leads to decreasing costs over time whereas leasing lines offers much less control over future telecom budgets. But perhaps the more interesting aspect of this story is that San Juan County is the only County in the state not connected with fiber-optic lines. Qwest has:
a 10-year, $37 million contract to provide high-speed connectivity to every county seat in Colorado, forming a statewide network known as the Multi-use Network, or MNT.
To save money, Qwest is using a microwave (wireless) connection for San Juan County, which is far less reliable than would be a fiber-optic connection. For such a rural area, microwave might be a good secondary connection, offering a backup in the case of a fiber cut or natural disaster. However, making that the primary connection is what happens when Qwest is calling the shots. Qwest is not looking out for the interests of first responders, residents, or businesses in Silverton, it is looking for "a compelling business case" in their own words. And this is exactly why Qwest should not be in charge of essential infrastructure.

Colorado's Least Populous County Wires Itself

Ran across this interesting story out of Silverton, Colorado - where Qwest has refused to provide a reliable telecommunications connection to the least populous county in Colorado. Recall that Qwest's refusal to offer redundancy in Minnesota's most rural County led to a total communications blackout for twelve hours, shutting down public safety and businesses alike. Silverton is the only town in rural San Juan County. The City is splitting the costs ($121K) of a new publicly owned fiber-optic loop with the County and apparently the State is offering a grant for the balance. As we emphasize time and time again, cities that move from leasing multiple lines from the incumbent to owning their network radically increase available speeds while cutting costs. Silverton estimates it will save 50% or more in its telecom expenditures. These savings will pile up over time because owning the network typically leads to decreasing costs over time whereas leasing lines offers much less control over future telecom budgets. But perhaps the more interesting aspect of this story is that San Juan County is the only County in the state not connected with fiber-optic lines. Qwest has:
a 10-year, $37 million contract to provide high-speed connectivity to every county seat in Colorado, forming a statewide network known as the Multi-use Network, or MNT.
To save money, Qwest is using a microwave (wireless) connection for San Juan County, which is far less reliable than would be a fiber-optic connection. For such a rural area, microwave might be a good secondary connection, offering a backup in the case of a fiber cut or natural disaster. However, making that the primary connection is what happens when Qwest is calling the shots. Qwest is not looking out for the interests of first responders, residents, or businesses in Silverton, it is looking for "a compelling business case" in their own words. And this is exactly why Qwest should not be in charge of essential infrastructure.

Colorado's Least Populous County Wires Itself

Ran across this interesting story out of Silverton, Colorado - where Qwest has refused to provide a reliable telecommunications connection to the least populous county in Colorado. Recall that Qwest's refusal to offer redundancy in Minnesota's most rural County led to a total communications blackout for twelve hours, shutting down public safety and businesses alike. Silverton is the only town in rural San Juan County. The City is splitting the costs ($121K) of a new publicly owned fiber-optic loop with the County and apparently the State is offering a grant for the balance. As we emphasize time and time again, cities that move from leasing multiple lines from the incumbent to owning their network radically increase available speeds while cutting costs. Silverton estimates it will save 50% or more in its telecom expenditures. These savings will pile up over time because owning the network typically leads to decreasing costs over time whereas leasing lines offers much less control over future telecom budgets. But perhaps the more interesting aspect of this story is that San Juan County is the only County in the state not connected with fiber-optic lines. Qwest has:
a 10-year, $37 million contract to provide high-speed connectivity to every county seat in Colorado, forming a statewide network known as the Multi-use Network, or MNT.
To save money, Qwest is using a microwave (wireless) connection for San Juan County, which is far less reliable than would be a fiber-optic connection. For such a rural area, microwave might be a good secondary connection, offering a backup in the case of a fiber cut or natural disaster. However, making that the primary connection is what happens when Qwest is calling the shots. Qwest is not looking out for the interests of first responders, residents, or businesses in Silverton, it is looking for "a compelling business case" in their own words. And this is exactly why Qwest should not be in charge of essential infrastructure.

Colorado's Least Populous County Wires Itself

Ran across this interesting story out of Silverton, Colorado - where Qwest has refused to provide a reliable telecommunications connection to the least populous county in Colorado. Recall that Qwest's refusal to offer redundancy in Minnesota's most rural County led to a total communications blackout for twelve hours, shutting down public safety and businesses alike. Silverton is the only town in rural San Juan County. The City is splitting the costs ($121K) of a new publicly owned fiber-optic loop with the County and apparently the State is offering a grant for the balance. As we emphasize time and time again, cities that move from leasing multiple lines from the incumbent to owning their network radically increase available speeds while cutting costs. Silverton estimates it will save 50% or more in its telecom expenditures. These savings will pile up over time because owning the network typically leads to decreasing costs over time whereas leasing lines offers much less control over future telecom budgets. But perhaps the more interesting aspect of this story is that San Juan County is the only County in the state not connected with fiber-optic lines. Qwest has:
a 10-year, $37 million contract to provide high-speed connectivity to every county seat in Colorado, forming a statewide network known as the Multi-use Network, or MNT.
To save money, Qwest is using a microwave (wireless) connection for San Juan County, which is far less reliable than would be a fiber-optic connection. For such a rural area, microwave might be a good secondary connection, offering a backup in the case of a fiber cut or natural disaster. However, making that the primary connection is what happens when Qwest is calling the shots. Qwest is not looking out for the interests of first responders, residents, or businesses in Silverton, it is looking for "a compelling business case" in their own words. And this is exactly why Qwest should not be in charge of essential infrastructure.

Colorado's Least Populous County Wires Itself

Ran across this interesting story out of Silverton, Colorado - where Qwest has refused to provide a reliable telecommunications connection to the least populous county in Colorado. Recall that Qwest's refusal to offer redundancy in Minnesota's most rural County led to a total communications blackout for twelve hours, shutting down public safety and businesses alike. Silverton is the only town in rural San Juan County. The City is splitting the costs ($121K) of a new publicly owned fiber-optic loop with the County and apparently the State is offering a grant for the balance. As we emphasize time and time again, cities that move from leasing multiple lines from the incumbent to owning their network radically increase available speeds while cutting costs. Silverton estimates it will save 50% or more in its telecom expenditures. These savings will pile up over time because owning the network typically leads to decreasing costs over time whereas leasing lines offers much less control over future telecom budgets. But perhaps the more interesting aspect of this story is that San Juan County is the only County in the state not connected with fiber-optic lines. Qwest has:
a 10-year, $37 million contract to provide high-speed connectivity to every county seat in Colorado, forming a statewide network known as the Multi-use Network, or MNT.
To save money, Qwest is using a microwave (wireless) connection for San Juan County, which is far less reliable than would be a fiber-optic connection. For such a rural area, microwave might be a good secondary connection, offering a backup in the case of a fiber cut or natural disaster. However, making that the primary connection is what happens when Qwest is calling the shots. Qwest is not looking out for the interests of first responders, residents, or businesses in Silverton, it is looking for "a compelling business case" in their own words. And this is exactly why Qwest should not be in charge of essential infrastructure.

Colorado's Least Populous County Wires Itself

Ran across this interesting story out of Silverton, Colorado - where Qwest has refused to provide a reliable telecommunications connection to the least populous county in Colorado. Recall that Qwest's refusal to offer redundancy in Minnesota's most rural County led to a total communications blackout for twelve hours, shutting down public safety and businesses alike. Silverton is the only town in rural San Juan County. The City is splitting the costs ($121K) of a new publicly owned fiber-optic loop with the County and apparently the State is offering a grant for the balance. As we emphasize time and time again, cities that move from leasing multiple lines from the incumbent to owning their network radically increase available speeds while cutting costs. Silverton estimates it will save 50% or more in its telecom expenditures. These savings will pile up over time because owning the network typically leads to decreasing costs over time whereas leasing lines offers much less control over future telecom budgets. But perhaps the more interesting aspect of this story is that San Juan County is the only County in the state not connected with fiber-optic lines. Qwest has:
a 10-year, $37 million contract to provide high-speed connectivity to every county seat in Colorado, forming a statewide network known as the Multi-use Network, or MNT.
To save money, Qwest is using a microwave (wireless) connection for San Juan County, which is far less reliable than would be a fiber-optic connection. For such a rural area, microwave might be a good secondary connection, offering a backup in the case of a fiber cut or natural disaster. However, making that the primary connection is what happens when Qwest is calling the shots. Qwest is not looking out for the interests of first responders, residents, or businesses in Silverton, it is looking for "a compelling business case" in their own words. And this is exactly why Qwest should not be in charge of essential infrastructure.

Stop the Cap's History of Electrification

Stop the Cap has an interesting series looking back at the history of electrification in the U.S. Part I of the three part series looks at the early years of resident electrical deployments:
Those who believed electricity would deliver social transformation to average Americans were stymied by power companies that wouldn’t deliver enough capacity to make the latest big appliances work. Blenders, mixers, toasters and other small electrical appliances could work, assuming you didn’t have too many lights turned on at the same time, but washers, refrigerators and electric ovens were out of the question. When consumers inquired about upgrading their service, they were refused by most electric companies. After all, most power company executives believed “illumination-grade” service was more than sufficient for virtually every American. In all, they consistently refused to upgrade facilities to at least four-fifths of their customers, telling them they could make do with what they had. The electrical industry defended this position for years, and even paid for studies to defend it. A willing trade press printed numerous articles claiming the vast majority of Americans would never require higher voltage service, and it was too expensive to provide anyway. A select minority of customers, typically the super-wealthy, were the exception. In fact, marketing campaigns specifically targeted the richest neighborhoods, offering “complete service,” because the industry believed it would quickly recoup that investment. That, in their minds, wasn’t true for middle class and low income households. In fact, low income neighborhoods of families making between $2,000 and $3,000 were often bypassed by electric companies completely.
The parallels to broadband are enormous and the self-interested arguments of privately-owned incumbents have not changed. Neither has the fight over public ownership, as we see in Part II:
As municipal power attracted attention, some in the private power sector balked. Not only were these companies delivering good service to customers, they were often doing it at far lower prices.