Councilor Carl Shuldes made the motion, which was seconded by Councilor Vicki Davis. Both voted in favor of the motion, along with councilors Tom Gilbertson and Justin Ask.
They include a little background (of a story I have also been following)…
This decision comes after Charter, which does business in the city under the name Spectrum and is the city’s largest provider of internet and cable television services, on Feb. 7 sent a city to the Willmar mayor and council stating that Charter would build out a fiber-optic network in the Willmar Industrial Park at no cost to the city, but only if the city stopped its plan to construct a city-owned, open-access fiber-optic network throughout the whole city.
Charter also promised to upgrade its existing network to provide better, faster and more reliable service to Willmar businesses and residents.
After sending out a request for proposals to build out fiber-optic services in the industrial park, the city accepted Hometown Fiber’s proposal to build the citywide network; Charter did not submit a proposal. The city of Willmar, with the assistance of the Willmar Broadband Committee and Hometown Fiber, has been researching and planning the Connect Willmar Initiative for two years and has invested approximately $650,000 and countless human resource and volunteer hours on the initiative.
Willmar has been in the news a lot lately because of its broadband plan. I’ve been following the saga but ad a quick reminder – The Connect Willmar Initiative has been working with Hometown Fiber for two years on a open access network plan for the community. They presented it at a City Council meeting last month. Before that meeting, Charter Communications sent the Council a letter asking them to rethink Connect Willmar’s plan and offering to build fiber to the industrial park. According to the West Central Tribune, the City Council will learn more about that on Monday (Mar 3)…
The meeting takes place at 6:30 p.m. in the boardroom at the Kandiyohi County Health and Human Services building, 2200 23rd St. N.E. in Willmar.
The agreement generally would be for the city of Willmar to terminate the Connect Willmar Initiative , a plan to build a citywide, open-access fiber-optic network, in favor of a guarantee by Charter Communications to build out fiber in the Willmar Industrial Park and enhance its services throughout the rest of the community at no cost to the city.
Along with the letter, Charter has targeted Willmar residents with Facebook ads, and a mailer from the Alliance for Quality Broadband has been sent to Willmar residents stating the city will “burn your tax dollars” if it moves forward with the initiative.
The Alliance for Quality Broadband on its website says it is “supporting high-quality internet solutions,” and Charter is one of its coalition partners.
Charter did the same thing in Maine, successfully defeating at least two municipal broadband projects in Readfield and Southport, according to a July of 2022 report on Maine Public Radio.
The Connect Superior project in Superior, Wisconsin, is a similar project to the Connect Willmar Initiative. According to an email from Superior Mayor Jim Paine, Charter used the same tactics it is currently using in Willmar to try to put a stop to that project.
The Willmar City Council and staff on Monday said a meeting would be conducted later this week with the company after its letter asking the city to hold off on the construction of an open-access broadband network.
The letter that Charter Communications sent to the city of Willmar requesting that the city hold off on its plans to construct a $24.5 million open-access broadband network was indirectly addressed Monday during the Willmar City Council work session.
Charter provides internet and cable television services in Willmar under the name Spectrum and sent a letter last week offering to commit to the installation of additional fiber-optic lines in the Willmar Industrial Park at no cost to the city. The proposal is described in the Feb. 7 letter as a solution to “saddling taxpayers with needless debt” for building the city-owned network.
A little background…
Currently, only 23 parcels out of 7,000-plus total parcels in the city of Willmar have fiber-optic capabilities — mostly government facilities, schools and some big businesses — according to Box.
Representatives from Broadband Corp. and Silverlight Fiber Network, internet service providers that plan to offer service on Willmar’s open-access broadband network and presented information to the council at Monday’s work session, were in agreement that coaxial technology will be obsolete in 10 to 20 years.
Representatives from Broadband Corp. and Silverlight Fiber Network, internet service providers that plan to offer service on Willmar’s open-access broadband network and presented information to the council at Monday’s work session, were in agreement that coaxial technology will be obsolete in 10 to 20 years.
The majority of the expenses thus far, approximately $400,000, have been for civil engineering services from the city’s contracted engineers at Bolton & Menk, approved by the council in 2024. About $200,000 has been spent on network architecture services from Hometown Fiber, and the remainder was for consultants, legal fees and marketing. The network will be owned by the city and managed by Hometown Fiber. It will allow multiple internet service providers to use the network, paying a fee to the city for its use. The city will use bond money to pay for construction of the network and the fees paid by the internet service providers will be used to pay the debt service on the bonds.
While the construction costs for the Connect Willmar Initiative are estimated to be $24.5 million, the total cost with principal and interest payments on the bonds may be closer to $33 million, Box verified Tuesday afternoon in an email to the West Central Tribune. However, he also noted there are a number of factors that will determine the final overall cost.
“We are not getting in the business of selling the internet,” Box said at Monday’s meeting. “We are in the business of infrastructure. … Because multiple ISPs can use the same network, there’s a greater opportunity for competition. This can lead to better service options, lower prices and more innovation as different providers strive to attract and retain customers.”
In 2023, AT&T announced a 50/50 joint venture with the investment firm BlackRock to form an open-access fiber network company called Gigapower, with AT&T Fiber as the anchor tenant.1 The Communications Workers of America (CWA), which represents the majority of AT&T’s frontline workforce, has closely tracked the Gigapower build-out in several markets.
This report is the first in a series of market spotlights looking at Gigapower’s deployments nationwide, and finds the following:
Gigapower puts public safety and public assets at risk by improperly vetting the dozens of contractors building its network.
○ Gigapower is using at least 35 contractors on its deployments across nine states.
○ In two cities in particular– Mesa, Arizona and Bloomington, Minnesota Gigapower contractors have been responsible for nearly 450 incidents of damage to the public right of way, and dozens of preventable underground utility hits.
Gigapower’s workforce model is fraught with exploitative, low-road employment practices.
○ These practices include the use of independent contractors and temporary staffing agencies that do not provide workers safety training or personal protective equipment to build the network.
○ Major Gigapower contractors have track records of labor law and safety violations. 1
○ Gigapower itself does not appear to employ any technicians building the network.
3. AT&T’s fiber strategy contributes to the erosion of telecom job quality and stability.
○ AT&T’s aggressive strategy to partner with BlackRock to deploy fiber using networks of nonunion contractors contributes to the financialization of broadband. The short-term focus on profits through outsourcing– or fissuring– of work erodes the quality and stability of family-sustaining telecommunications careers.
Here’s what they say about the project in Bloomington MN…
In an early look into the Bloomington, Minnesota market, in just four months, between April and July 2024, Gigapower and its contractors were cited more than 400 times for damaging the public right of way during deployment. For at least 100 locations across Bloomington, Gigapower contractors were cited multiple times for each location, only weeks apart suggesting that Gigapower was made aware of the citations, but may have failed to respond and rectify the bad quality work in a timely manner.20 In the same timeframe, Gigapower’s contractors in Bloomington hit underground utilities– including gas, water, and electric lines– at least twenty-three (23) times.2
Bloomington, home to the Mall of America, is not rural Minnesota. I can’t say firsthand if the work environment is the same everywhere, but the safety of workers is important everywhere and broadband installation is a traveling job. The article mentions contractors, so it is conceivable that teams working in Bloomington could be stationed to a rural area next.
The Willmar City Council on Monday did not take any action on the Connect Willmar Initiative despite being informed April 29 during a work session that it would be asked to consider a number of approvals on May 6 to move the initiative forward.
The City Council was informed by City Operations Director Kyle Box that the operations agreement between Hometown Fiber and the city was not ready for approval, which is the first approval needed before moving forward.
City Attorney Robert Scott noted that the agreement is nearly 99% ready with a couple of blanks to be filled in and given final review by the city and Hometown Fiber. Box informed the council the goal is to have the operations agreement ready for approval within four weeks.
They talk about the project…
“This project is a public-private partnership; the city of Willmar will pay for, build, and be the sole owner of the fiber infrastructure,” Box said. “This model allows internet service providers to operate on the network and provide their services to the residents and businesses of Willmar — the city of Willmar will not be an ISP.”
And the need…
Box reminded the council that survey results reviewed during a work session in January showed that residents of Willmar “understand the importance of bringing this 21st-century infrastructure utility to their homes.”
For more than a year, Willmar city staff, company representatives from Hometown Fiber, experts and consultants have been working together to create the plans and contracts that will mitigate the risk to taxpayers for a city-owned, citywide open-access fiber network — the Connect Willmar Initiative.
The Willmar City Council will be asked during its Monday, May 6, regular meeting to consider approving $9.2 million in funding for the first phase of the construction of the broadband network and an additional $64,000 for Hometown Fiber to continue a community outreach and education campaign. It will also be asked to consider approving an operations agreement between the city and Hometown Fiber.
More info on the project…
Hometown Fiber has completed the architecture plans for phase one and city engineers from Bolton & Menk are preparing construction documents. The details of the operations agreement have been worked through with the city attorney, and a letter of intent has been signed with Hutchinson, Minnesota-based Broadband Corp . to provide service on the network.
The operations agreement solidifies the legalities behind the relationship between Hometown Fiber and the city of Willmar. According to the April 29 presentation, Hometown Fiber will charge a fee to the city to manage and maintain the network for the city, signing up internet service providers to lease the network to provide service to residents. It will not collect a fee from the city until the network has its first customer.
The lease fee paid by internet service providers will be 35% of whatever they are charging the customer for service. For example, if someone’s bill is $100, the city would get $35 of it.
The Willmar City Counsil on Monday May 6, 2024, will consider approval of $9.2 million in funding for phase one the Connect Willmar Initiative, a project to construct a city-owned broadband network throughout the city.
This initiative that will bring directly connected fiber lines to each residence and business in the city of Willmar. The infrastructure will be built and owned by the city of Willmar. This infrastructure will allow and provide multiple ISPS the ability to offer services on this fiber infrastructure, adopting an “open access” system.
The Willmar City Council this week approved a service contract with Home Town Fiber of Maple Grove. Willmar Operations Director Kyle Box says the company will be working on engineering plans for an open access fiber network that they want to begin installing in every home and business in Willmar for high-speed internet…
…Box says the project will be paid for by Home Town Fiber and customers who use the open access fiber network. If built, Willmar would be the first city in Minnesota with an open access fiber network…
…One the lines are laid, any internet service provider will be able to use the open access fiber network and charge customers for service. Hometown Fiber hopes to begin laying down the lines next spring.
The City of Willmar continues to work toward getting the first Open Access Fiber system in the state. Willmar Planning and Development Director Justice Walker says Hometown Fiber of Maple Grove wants to install fiber-optic cable throughout the city, and then lease it out to anyone who wants to become an Internet Service Provider.
The City is drafting a use agreement with Hometown Fiber. Once that’s drafted, they’ve move forward with the bonding process to fund the network. It will take about three months to determine whether it makes sense financially to move forward.
I wrote about this project a week ago, but more info might be helpful, especially if the concept of open access network is new. Willmar Radio reports…
A Maple Grove company wants to build a fiber optic network to provide high-speed broadband internet service to every home and business in the city of Willmar. Willmar Planning and Development Director Justice Walker says it would not cost city taxpayers one cent, and the company, Home Town Fiber, would share their profits with the city, profits they would generate by renting the network to any Internet Service Provider, or ISP, that wants to use it.
Justice Walker answers a series of questions about the open access model, which is a great way to get folks interested. I’ll share the abbreviated answers that the radio station shared in writing. Check out the website for full answers…
…Walker says in communities in others states where an Open Access Fiber Broadband Network exists, they are popular with ISPs…
…Home Town Fiber would bond, with the city’s help, to pay for the project and pay off the bonds through the profits they generate. The initial proposal was for 19.3 million dollars, but Walker says by working with the city to install the fiber as the city works on street projects, the costs will go down…
…Right now city officials are working on creating a contract with Home Town Fiber. If successful, Willmar would have some of the fastest internet in the state.
JTF offers grants of up to $150,000 and technical assistance to help organizations access federal and state funds to expand broadband access. This program is designed to offer flexible support for what local organizations need. Grants and technical assistance can be used for:
Grant writing to put together a successful application
Identifying grant programs that are a good fit for a community project
The community’s portion of infrastructure project matching funds
Building internal staff capacity to further develop and refine a community broadband project
Feasibility studies and additional project planning
The Fund prioritizes communities in Kentucky, Virginia, West Virginia, North Carolina, Pennsylvania, Ohio, Illinois, Indiana, Missouri, Minnesota, Wyoming, Arizona, Colorado, Montana, New Mexico and Texas.
Recipients of broadband grants or technical assistance, which are provided on a rolling basis, are invited to join JTF’s community of practice. Through ongoing open calls and relationship-building, the JTF supports communities and connects them with one another to facilitate peer learning, mentorship, and the sharing of best practices.
The Institue of Local Self Reliance reports on Duluth…
Last April, the Duluth Economic Development Authority signed a $65,000 contract with Entrypoint LLC to examine the possibility of building a community-owned fiber network in Duluth. The result: a new Digital Access Master Plan that proposes the city spend $7-9 million to build a pilot open access fiber network in Lincoln Park next year.
“Reliable high-speed internet is no longer a luxury,” Duluth Mayor Emily Larson proclaimed in a recent state of the city address. “It’s an essential utility no less important to our future success than our roads, water, and electricity.”
Under the proposal, 75 percent of the new network would be buried fiber and 25 percent would be microtrenched along public roads. The $7 to $9 million estimated price tag is based on a 60% take rate, short-term interest at 5 percent, and a long-term interest rate of 3 percent for 20 years. The initial pilot project would bring fiber to an estimated 1,900 Duluth residents next year.
“A 60% take-rate may seem aggressive given the strong market position of the incumbent cable operator,” the plan states. “However, the survey data suggests a strong desire among residents and businesses in Duluth to see competition, choice, better pricing, and the reliability of a fiber optic network.”
The plan moving forward…
Last June, the Minnesota Department of Employment and Economic Development (DEED) announced that the state would be doling out $95 million in broadband expansion grants, with a maximum of $5 million for each potential target community. Another $68.5 million in funding for Minnesota communities is poised to arrive via the American Rescue Plan Act.
If the pilot goes well, the city will then decide whether to embrace a full, citywide fiber network at an estimated price tag of between $76 and $80 million.
Assuming the full network were to be built over a 48 month period, the plan predicts Duluth would need to subsidize the network for 14 months. Once the network reaches 21,709 premises, the investment will be paid back by operational surpluses. The plan assumes a $79.9 million network build cost would be funded with debt at a 3 percent interest rate over 20 years.
The Duluth Economic Development Authority voted Wednesday to spend up to $65,000 to have EntryPoint LLC, based in Salt Lake City, Utah, advise it on the prospects for a publicly owned fiber-optic system.
Chris Fleege, director of Duluth’s planning and economic development department, explained that the city is considering the possibility of building an open-access broadband system.
The Office of the Minnesota Secretary of State today released notice of vacancies for various state boards, councils and committees that are accepting applications. Minnesotans are encouraged to apply and serve in demonstration of public service. Here are the positions that I thought might be of interest to readers…
Minnesota E-health Advisory Committee
Vacancies: 1 Seat -Academics and Research
Vacancies: 1 Seat -Community Clinics/Fed Qual. Health Centers
Vacancies: 1 Seat -Experts in Quality Improvement and Clinical Guideline Development
Vacancies: 1 Seat -Health Care Administrator
Vacancies: 2 Seats -Health Plans Representatives
Vacancies: 1 Seat -Health System Chief Information Officer
Vacancies: 1 Seat -Hospital Representatives
Vacancies: 2 Seats -Licensed Health Professionals (Physician/Nurse)
Vacancies: 1 Seat -Local Public Health
Vacancies: 2 Seats -Rotating Professionals – Additional Health Settings (Dentists, Pharmacists, Behavior Health Laboratory, Home Health, Social Services, etc)
I had a few emails last week asking me about what it means to define broadband as a utility. So I thought I’d try to tackle the question, which came up after the Minnesota State Bar Association (MSBA) meeting on broadband.
At the meeting, someone compared the drive for border to border broadband to the Rural Electrification Act, which provided federal loans for installation of electricity to rural areas, often through cooperative electric power companies. Someone else asked if that was really what the country needed.
Here’s the catch 22 – metro areas are often angling for competition while rural and remote places are hoping for one, good solution. When visiting Minnesota last year, FCC Chairman Wheeler talked about competition being ingrained in the American psyche.
But in very rural areas, where it’s difficult to make a business case to serve so few homes in such large geographic areas, competition can be detrimental. For example, someone at the conference mentioned FirstNet as way to bring better broadband to anchor institutions in rural areas. On the one hand, it’s a great way to serve those institutions and maybe save money by allowing government entities to share connectivity. On the other hand, you risk taking away a “big” customer from a potential broadband provider who might also serve local homes and businesses. The amount they can charge the big guy offsets the cost they charge home users.
It might be easier in such a case to think of broadband as a utility. Share the connection not only with anchor institutions but local residents and businesses as well. (And there is a growing interest in using a cooperative model to provide services.)
Looking at that conundrum, there aren’t many rules or regulations that lead to an answer. Universal Service Funding (Connect American Fund) strives to fund only one provider in any given area. But recent open internet regulation promotes competition in several ways – for example striving to regulate broadband similarly regardless of platform (wired, wireless). And in practice it certainly seems that while there is often not enough business for one provider to upgrade connectivity, there’s business for two! (One example is Monticello. They have had issues but the local provider was not interested in providing fiber until the local government expressed an interest.)
“Using this authority, I am submitting to my colleagues the strongest open internet protections ever proposed by the FCC. These enforceable, bright-line rules will ban paid prioritization, and the blocking and throttling of lawful content and services. I propose to fully apply—for the first time ever—those bright-line rules to mobile broadband. My proposal assures the rights of internet users to go where they want, when they want, and the rights of innovators to introduce new products without asking anyone’s permission.”
The decision provides protections to customers. It treats wired and wireless similarly to wired broadband. One goal was to promote competition. But it really focuses on making sure that the providers offer and maintain unfettered access through broadband more than to broadband. It ensures that once online, each user shall have equal access to materials, services and each other. BUT it doesn’t as directly address the folks who can’t get online. To build on the analogy of the superhighway, it prohibits providers from creating tolls roads or privileged pay-lanes but it doesn’t push roads everywhere and it expressly does not address price. It does safeguard against the idea of an “Internet Junior” for some areas but it doesn’t promote more infrastructure.
To add more fodder for thought…
Doug Dawson makes the point today that the competition is shrinking. I don’t know if that will help promote better service in markets that are served or better access to unserved areas. I can remember discussions with the original Minnesota Task Force on broadband as a natural monopoly. They refer to one provider more than unfettered access…
Need to think of the future – we’re setting a goal to be reached in the future, not immediately. In you look out 10 years, there’s going to be 1 pipe into houses and that’s going to be fiber. The notion of building 2 mediocre networks for the sake competition is short sighted. The pipe is a natural monopoly. We need to set the goals for the future – not next year. We need to be aggressive – we need to protect consumers. Consumers have been screwed by provides for so long that we need to protect them.
No we don’t have a monopoly; it’s just not true. We have more than one pipe in the house now. There are implications in the statement that will have an impact on policy.
From the rural perspective I think communities and policymakers need to think about who and how promote access. It seems like funding helps – again at the MSBA both providers and policymakers alluded to the collaboration occurring because of the State Broadband Funds maybe a hybrid solution is best – a little bit utility, a little bit free market. BUT these issues are different than the issues addressed by the FCC in their Open Internet policy.
