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Municipal ISP Makes 10Gbps Available To All Residents

An anonymous reader writes: Five years ago, the city of Salisbury, North Carolina began a project to roll out fiber across its territory. They decided to do so because the private ISPs in the area weren't willing to invest more in the local infrastructure. Now, Salisbury has announced that it's ready to make 10 Gbps internet available to all of the city's residents. While they don't expect many homeowners to have a use for the $400/month 10 Gbps plan, they expect to have some business customers. "This is really geared toward attracting businesses that need this type of bandwidth and have it anywhere they want in the city." Normal residents can get 50 Mbps upstream and downstream for $45/month. A similar service was rolled out for a rural section of Vermont in June. Hopefully these cities will serve as blueprints for other locations that aren't able to get a decent fiber system from private ISPs.

29 of 164 comments (clear)

  1. They aren't being sued? by fustakrakich · · Score: 3

    I mean, isn't that the way it works? The companies that refuse to provide service sue for 'unfair competition' anyway? Then the nice judge shuts the whole operation down?

    --
    “He’s not deformed, he’s just drunk!”
    1. Re:They aren't being sued? by fustakrakich · · Score: 5, Informative
      --
      “He’s not deformed, he’s just drunk!”
  2. Nice! by nospam007 · · Score: 2

    How much for an anonymous seedbox?

  3. Re:$400/mo for 10,000Mbps, $45/mo for 50 by Himmy32 · · Score: 2

    Because there are a great deal more costs than the bandwidth. You know running cables and a operating an ISP. A 50Mbps symmetric fiber to the home line for that is great price.

  4. Re:Speed isn't Everything by Anonymous Coward · · Score: 5, Insightful

    Do you have reason to believe they don't have static IPs? We sure have a lot of reason to believe they do probably have static IPs, since they claim the main reason for so much seeming excess capacity is that they're trying to keep it usable for future businesses (i.e. servers).

    The car analogy here is that someone announced cheap car fuel, and you're saying, "but if it's going to go into cars without front windows so that you can't see where you're going, then this fuel is useless." True, but irrelevant and kind of stupid.

    Go on, tell us some more of your ideas for hypothetical wastes of time. No, wait. I think I am even more creative than you. Let me try.

    If this network can only route to odd-numbered addresses, then it's a waste of time.

    If web pages fetched over this network can only have titles starting with the letter F, then it's a waste of time.

    If the 10GBps service has a data cap of 5 Megabytes per month, then it's a waste of time.

    Hey, you're right. It is kind of fun to say this stupid shit.

  5. And the money flows as fast as the data. by Anonymous Coward · · Score: 2, Informative

    They lost $ 12.5 Million last year. They owe the Water & Sewer Department $ 7.6 Million. They already offer 1 Gig service and have all of two customers. The reason they aren't getting sued is because it isn't worth Time Warner's trouble.

  6. Re:$400/mo for 10,000Mbps, $45/mo for 50 by Anonymous Coward · · Score: 3, Funny

    Because neighbor support is worse than user support.

  7. In my state this is outlawed by NotDrWho · · Score: 4, Interesting

    Municipal broadband is outlawed in my state, and most others too. Ironically, even with Chattanooga, one of the most famous of the municipal broadband cities, the rest of Tennessee can't get it because it's been outlawed in the rest of the state.

    --
    SJW's don't eliminate discrimination. They just expropriate it for themselves.
  8. Re:Speed isn't Everything by serviscope_minor · · Score: 2

    If they don't offer static addressing, then it's a waste of time.

    Why? I've never missed having static addressing on my home connection.

    --
    SJW n. One who posts facts.
  9. Re:$400/mo for 10,000Mbps, $45/mo for 50 by Paco103 · · Score: 4, Insightful

    So, doubling what you're getting now for the same price is just "OK"?

  10. It's all about the money, honey by Mycroft-X · · Score: 3, Informative

    In 2014 they generated $4.8 million in revenue and after expenses had $229,000 to show for it. Add in depreciation (a substantial expense for a capital intensive company), amortization, interest, and other expenses and they were taxpayer funded to the tune of $144,110. That's almost 1% of all property tax revenues.

    It will be interesting to see if they can be profitable as their services scale past 3,000 customers and service more of their 33,000 residents and even more businesses.

    1. Re:It's all about the money, honey by Dragonslicer · · Score: 2

      In 2014 they generated $4.8 million in revenue and after expenses had $229,000 to show for it. Add in depreciation (a substantial expense for a capital intensive company), amortization, interest, and other expenses and they were taxpayer funded to the tune of $144,110. That's almost 1% of all property tax revenues.

      It will be interesting to see if they can be profitable as their services scale past 3,000 customers and service more of their 33,000 residents and even more businesses.

      Not sure if you're stating that this a bad thing, a good thing, or just some interesting numbers. 1% of property tax revenue going towards really good Internet connections sounds to me like a great use of a small amount of tax revenue. Even eliminating that need for tax money wouldn't be too hard; raising the price by $5/month still makes it a good value, and that would be assuming that their expenses are linear with the number of subscribers.

    2. Re:It's all about the money, honey by Tom · · Score: 2

      If 144k are split by 33k residents, that's less than $5 per resident per year. A tiny price to pay for having the best Internet in the state and all surrounding states.

      4.6 mio. in expenses, again divided by residents, is less than $140. That's a little more than $10 a month. Frankly speaking, at such prices they should just run the whole thing on taxes, provide Internet for free to every house, and save all the overhead of billing and subscription management.

      --
      Assorted stuff I do sometimes: Lemuria.org
    3. Re:It's all about the money, honey by jabuzz · · Score: 2, Informative

      Assuming they have laid single mode fibre, then the deprecation can be over such a long time period that it is basically negligible. If you ran single mode fibre 20 years ago you could still use it tomorrow for 100Gbps with off the shelf components. It will be part of the upcoming 400Gbps Ethernet standard, and there are systems that will let you get 1Tbps over the very same fibre though these are specialist systems at the moment.

      You could probably reasonably deprecate the fibre which is the main capital component over a 100 year period.

  11. Should they only be in the layer-2 business? by swb · · Score: 3, Insightful

    While I mostly think this is great, I wonder if they should be in the "business" of supplying actual layer-3 connectivity or whether they should just be maintaining the fiber plant and selling access to it to other companies willing to provide actual IP connectivity?

    Maybe a purely internal municipal ISP makes sense for supplying IP connectivity to municipal offices, schools or other parts of the government.

    The part that makes me kind of leery is the fact that the government is the ISP and this creates a certain conflict. Does the fact that the municipality runs it mean that the police have greater access to monitor the network or some increased motivation to use municipal control to go after "evildoers"?

    It's not hard to see how this could also morph into the kind of local political control that those in power use to stay in power.

  12. Yes, but... by Fire_Wraith · · Score: 2

    What about the Gulags that residents of Salisbury were shipped off to, and the political commissars patrolling the streets? Didn't these people pay any attention to the warnings from the telecommunications companies about what would happen if the government was allowed to institute socialist internet? ..what do you mean none of that happened? Well, what about the crippling taxes to pay for it, while fatcat government bureaucrats refuse to answer the phones, harass people, change their customer account names to things like "Asshole", refuse to let them cancel service, and generally make their customers' lives a living hell? ...what do you mean, that was Comcast?

  13. Even more interesting... by MitchDev · · Score: 2

    Wait a year or two and see what happens to the Cable and Satellite providers in the area.

    That's what I want to see

  14. Also the Solution to the Last Mile Problem? by Anonymous Coward · · Score: 5, Insightful

    Salisbury's solution to this problem is on the right track but it's not the correct solution. If companies sue for unfair competition, they'll win. Governments should not be ISPs or content providers.

    The correct solution to this, which is also the correct solution for the last mile problem, is for the city government to own and maintain the infrastructure that exists in public rights of way, and create a new utility just like most cities have for their water and sewer systems. Then, run all the fiber to a "connection point" where any number of private providers can bring their content and any house or building may connect through the public fiber utility. Of course, any number of ISPs, telephone companies, and other content providers may bring their stuff to the city's connection point, and thus our capitalist free enterprise system is allowed to function unimpeded by the government. End consumers can freely choose between providers, and that will be the end of the bullshit shoveled by Comcast, Time Warner, Wave Cable, et al.

    I really don't understand why governments don't jump at the chance to do this. A brand new public utility is a WHOLE NEW INCOME STREAM, where the government gets to send out bills and collect money. All the have to do is hire a contractor to maintain the infrastructure, buy insurance to protect from natural disasters, and then collect money from everyone FOREVER.

    For the record, I'm a conservative, and I'm very much pro capitalism and against excessive government. However, unlike the anarchists and other extremists to the right of me, I recognize that we need government to provide certain basic minimum functions for the public good. So before I get accused of being a pro-government communist, I humbly submit that providing utilities to all the city's homes and businesses is one of those necessary functions.

    Capitalism will keep all the private providers in check. There's no way Comcast and it's ilk would behave the way they do if they had to compete for your business. If the voters become unhappy with the prices they're charged by the fiber utility, it's their responsibility to vote the bums out and elect representatives who will change maintenance contractors, change insurance companies, and do whatever else is necessary to keep prices low. Therefore, on both public and private fronts, all the power lies in the hands of the people. It's exactly that kind of individual empowerment that conservatives stand for.

    With so much money hanging in the balance and knowing the government has no actual work to perform, why doesn't every municipal government jump on the bandwagon and solve the last mile problem once and for all? ...and use the same solution to provide service to towns like Salisbury?

  15. Re:I'll never understand why we privatize by WillAffleckUW · · Score: 2

    Yeah, like Seattle City Light, which sells green power cheaper than the privately owned utility across the lake.

    Damn those public utilities! We want to pay even more for dirty coal electricity!

    --
    -- Tigger warning: This post may contain tiggers! --
  16. hands in pockets by Tom · · Score: 3, Funny

    locations that aren't able to get a decent fiber system from private ISPs.

    What? Invisible hand of the free market not working? How strange, we were all told that capitalism solves every problem, through magic.

    Apparently it's better at turning trees into toilet paper (see article above) than infrastructure. Which, btw., is also falling apart in the US.

    --
    Assorted stuff I do sometimes: Lemuria.org
    1. Re:hands in pockets by Obfuscant · · Score: 2

      How strange, we were all told that capitalism solves every problem, through magic.

      Don't believe everything you read on the Internet. I've never seen anyone saying this, but then, I don't wander the Internet looking for ways to castigate capitalism.

      Apparently it's better at turning trees into toilet paper (see article above) than infrastructure. Which, btw., is also falling apart in the US.

      You mean all those bridges and highways that are operated by greedy capitalistic monolithic multinational corporations? All the sewer and water lines run by monopolistic megalomaniacal corporate CEOs?

      You might be interested to know that those signs along the road that say "This road adopted by MacDonalds' employees" doesn't mean MacDonalds actually maintains that bit of infrastructure, just that the employees come by every so often to pick up trash on the roadside. The road is actually maintained by the greedy multinational capitalistic city, county, or state road departments.

      Claiming that publicly funded and maintained infrastructure failures are caused by capitalism is a bit of a stretch.

  17. Re:Speed isn't Everything by Coren22 · · Score: 3

    Found the Comcast marketing director!

    --
    APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?
  18. Re:I'll never understand why we privatize by Solandri · · Score: 3, Interesting

    Because cable companies (which became cable ISPs) weren't originally something you could call a public utility. When they started, nobody knew what was the best way to rig up houses, or allocate bandwidth. When they started offering Internet service, that increased the complexity because now each home needed to be able to transmit data back to the cable company. These were all complex problems with a plethora of possible solutions. The "myth of capitalist efficiency" is precisely what filtered out the bad solutions over three decades, leaving only the efficient ones.

    If cable had been made a public utility from the onset, we'd probably still be stuck with analog broadcasts and a few dozen channels. Just like government-imposed GSM would've been stuck with approx 50 kbps data speeds if the U.S. hadn't allowed CDMA to compete against it. (Orthogonal multiplexing like CDMA and OFDMA are what allows the high speed data rates. With the original GSM TDMA spec, each phone would take up part of the data bandwidth even if it didn't use it. On the other hand, CDMA distributed bandwidth according to how much each phone was using. Eventually, nearly every GSM phone ended up using wideband CDMA for data. That's why they can talk and use data at the same time - they had a TDMA radio for voice, and a CDMA radio for data. CDMA phones only had one radio for both. That's right, CDMA won the GSM vs CDMA war.)

    Once you've arrived at what seems to be the optimal solution, then you can think about turning it into a public utility. That's what happened with electricity - AC and DC networks were allowed to compete, until it became economically obvious that long distance AC transmission was better. Then it got turned into a public utility. But it'd be remiss to think you could get to where we are today without the private capitalism stage - it's what allowed us to find the optimal solution in the first place. (And in fact the current state of electricity as a public utility is impeding efforts to explore if long-distance DC transmission might in fact be better with the modern high-efficiency DC converters that weren't available during the original AC vs DC war.)

  19. Re:Speed isn't Everything by mi · · Score: 2

    there is no need to address anything you posted there since it's all bullshit

    Awesome! Shall nominate for the best universal rebuttal on the Internet.

    --
    In Soviet Washington the swamp drains you.
  20. Re:Speed isn't Everything by sjames · · Score: 2

    What's the problem? The people there voted for it. Do you not believe in democracy? They also have the choice to use Comcast or AT&T, do you not believe the market can decide?

  21. Re:Speed isn't Everything by cm5oom · · Score: 2

    You can do static addresses with DHCP. It stand for dynamic host configuration protocol, not dynamic address allocation protocol.

  22. Re:Speed isn't Everything by sjames · · Score: 2

    They also offer 50Mbps symmetric to residential customers. They are currently cash positive, just not yet paying down the principal. So for the resident, it comes down to price vs. performance like any other consumer decision.

    Significantly, Comcast and AT&T seem to believe municipal broadband is a real threat since they are willing to spend bucketloads of money trying to kill it.

    I believe in a functioning constitutional democracy. Where such exists, I support it. The U.S. federal version seems to be dysfunctional ATM. The tail tends to wag the dog.

  23. Re:I'll never understand why we privatize by flink · · Score: 2

    Because cable companies (which became cable ISPs) weren't originally something you could call a public utility. When they started, nobody knew what was the best way to rig up houses, or allocate bandwidth. When they started offering Internet service, that increased the complexity because now each home needed to be able to transmit data back to the cable company. These were all complex problems with a plethora of possible solutions. The "myth of capitalist efficiency" is precisely what filtered out the bad solutions over three decades, leaving only the efficient ones.

    Who cares about the cable companies? If we had a public data utility, we'd have just strung fiber everywhere and no one would have had to solve the problem of transmitting upstream over coax. Then those who wanted to continue to be robbed by the cable companies could continue to do so while the rest of us purchased our data services a la carte. Heck, the cable companies could even provide their services over the new infrastructure.

    This is what we were supposed to get via our existing common carrier infrastructure if the phone companies hadn't stolen all the money for it. Since private industry has proven itself too inept or crooked to get this done, I think it's high time we take it over as a public works project.