Cecily Zamora
In 2020, the city of Anacortes, Washington, became the first American city to use an innovative technique to install fiber-optic cables through its water system. This method was chosen because it is faster and more cost-effective than traditional techniques. Anacortes' decision to build and operate its own municipal broadband company, Access Anacortes, was driven by the community's desire for better internet service. The city's experience provides valuable insights for other public entities considering developing not-for-profit broadband services. Despite facing challenges such as material procurement and operating within a municipal system, Anacortes has achieved success, with plans to expand its customer base through 2023. The city aims to fund this expansion through various sources, including federal grants and infrastructure legislation. While some states have restrictive laws against municipal broadband networks, Anacortes has benefited from Washington state bills that enable public utility districts to build broadband infrastructure and provide direct service to customers.
| Characteristics | Values |
|---|---|
| Location | Anacortes, Washington State |
| Population | 17,000 |
| Broadband Company | Access Anacortes |
| Broadband Cost | $39 per month for 100 megabit-per-second service and $69 for gigabit speeds for residential customers |
| Broadband Cost | $89 or $149 per month for gigabit speeds for businesses |
| Funding Sources | Federal American Recovery Plan Act, Economic Development Administration grant |
| Challenges | Running a startup business within a municipal system, material procurement |
| Benefits | Reduced costs, improved connectivity for fire stations, water stations, and other city facilities, increased competition for commercial internet providers |
| State Law | Washington State bills allow public utility districts and agencies to build broadband infrastructure and provide direct service to customers |
| Municipal Broadband Restrictions | 16 states have laws hindering municipal broadband networks, 4 states have no municipal broadband networks |
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What You'll Learn
Anacortes' broadband network is run through its water system
The city of Anacortes, Washington, has developed a unique method of delivering high-speed internet to its residents by utilising its water system. This innovative approach, known as the "Pipe in Pipe" Fiber Project, involves installing fiber optic cables within the city's existing water pipes. This technique, which is the first of its kind in North America, offers a cost-effective and efficient way to provide broadband internet access to the community.
The project was initiated when Anacortes needed to update its telemetry system for water and wastewater services. The city partnered with NoaNet, a telecommunications company, to design and implement a fiber-optic wastewater telemetry system. This system not only improved the city's water management but also laid the foundation for a community-wide fiber-optic network. By utilising the existing water infrastructure, Anacortes was able to reduce the costs and challenges associated with traditional fiber optic cable installation, such as digging under roads and natural landmarks like the Skagit River and Swinomish Slough.
The fiber optic cables are encased within a tube that runs through the water lines, ensuring no chance of contamination or intrusion. This method, commonly used in Europe, has been likened to having a "water pipe inside a water pipe" by Fred Buckenmeyer, the city's Public Works Director. The network has been designed to facilitate communication between essential city facilities, such as fire stations and water stations, while also providing high-speed internet access to residents and businesses.
Access Anacortes, the city's municipal broadband company, has played a crucial role in bringing this project to life. With public support and political will, the company has successfully expanded broadband service within the city. As of 2021, Access Anacortes has reached nearly 46% market share, exceeding its initial projections. The company continues to plan expansions, aiming to reach even more customers in the coming years.
The success of the "Pipe in Pipe" Fiber Project in Anacortes highlights the potential for similar initiatives in other cities. By leveraging existing infrastructure and adopting innovative technologies, communities can improve their access to high-speed internet while also reducing costs and construction disruptions. The project serves as a testament to the creativity and determination of the city of Anacortes in providing its residents with improved broadband services.
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Municipal broadband projects are often hindered by state laws
State lawmakers use a variety of mechanisms and restrictions to hinder municipal broadband projects. Common tactics include forcing phantom costs into municipal broadband service rates, restricting the expansion of public broadband networks, limiting public funds for broadband to public-private partnerships, and bureaucratic obstacles. These barriers can make it difficult for municipal broadband projects to initiate, costly to build, and commercially unviable.
In some cases, states may defend their decision to restrict municipal broadband in public, which can lead to delays in receiving funding for broadband projects. The telecom industry often lobbies against local initiatives and promotes state preemption of local laws intended to expand broadband access. However, there have been some successful efforts to remove restrictions on municipal broadband. For example, Colorado eliminated the requirement for local municipalities to hold a referendum before establishing local broadband service, and Vermont has positioned itself as a leader in supporting municipal and community-driven broadband initiatives.
The city of Anacortes in Washington state has successfully built and operates its own municipal broadband company, connecting its first customers in March 2020. Anacortes faced challenges such as running a startup business within a municipal system and material procurement but has been met with success, reaching nearly 46% market share. The city is planning several expansions through 2023, with the potential to reach 7,335 customers.
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The city's broadband company is called Access Anacortes
The city of Anacortes in Washington state has its own municipal broadband company, Access Anacortes. The city's water and wastewater utilities helped fund the construction of a fibre-optic network, which provides broadband access to the city.
The creation of Access Anacortes was driven by public support and political will from elected city leaders. Before beginning the project, Anacortes city officials asked the community for feedback about the value of broadband access. More than 1,600 people responded to a broadband interest survey, and most respondents were supportive.
The city has faced challenges in running a startup business within the confines of a municipal system, such as the requirement to put out requests for bids to find the lowest-cost materials. Despite these challenges, Access Anacortes has been successful, reaching nearly 46% market share.
Access Anacortes is unique in that it is the first city in Washington to become an ISP. The company's first customer was connected on 25 October 2019, and as of March 2020, it had connected its first customers. The city is planning several expansions through 2023, with the potential to reach 7,335 customers.
The state of Washington has enabled the creation of municipal broadband companies like Access Anacortes by passing laws that allow public utility districts and other public agencies to build broadband infrastructure and provide service directly to customers. This is in contrast to many other states, which have restrictive legislation against municipal broadband networks, making it difficult for cities to establish their own broadband services.
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The project is funded by the city's general fund surpluses
The city of Anacortes, Washington, has embarked on an ambitious project to provide municipal broadband services to its residents, becoming the first American city to utilize an innovative technique for installing fiber-optic cable through existing water lines. This project is primarily funded by the city's general fund surpluses, allowing Anacortes to operate with a longer payback period compared to traditional service providers.
The decision to fund the project through the city's general fund surpluses demonstrates the local government's commitment to improving broadband access for its citizens. By utilizing surplus funds, Anacortes can maintain greater financial flexibility and independence in the project's initial stages. This approach also enables the city to retain control over the broadband infrastructure and services, rather than relying heavily on external investors or partners.
The use of general fund surpluses as a funding source is particularly advantageous for Anacortes due to the unique challenges faced by the city. As a municipal startup, Anacortes encountered difficulties in material procurement, requiring them to navigate the complex process of bidding to secure the lowest-cost materials. The extended payback period afforded by using surplus funds helps mitigate these challenges, providing the city with the necessary financial breathing room to navigate the startup landscape successfully.
Additionally, the funding approach aligns with the project's overall strategy of reducing costs through innovative methods. By leveraging existing water infrastructure, Anacortes has been able to deploy fiber-optic cables more quickly and at a lower cost compared to traditional techniques. This cost-saving measure complements the financial flexibility provided by the city's general fund surpluses, contributing to a more sustainable and efficient project overall.
The project's funding strategy also reflects a broader trend in municipal broadband initiatives across the United States. Despite facing legal and political obstacles, many cities are exploring innovative ways to increase broadband access for their residents. Anacortes' success in securing funding from its general fund surpluses could inspire other municipalities to reevaluate their financial strategies and explore alternative funding sources to enhance broadband services in their communities.
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The service will cost $39 per month for residential customers
In 2020, the city of Anacortes in Washington state began providing its own municipal broadband service, connecting its first customers in March of that year. The service costs $39 per month for residential customers.
The city's decision to enter the broadband market was driven by community members who approached the city council in 2014, expressing a need for better internet service in the area. Anacortes' public works director also saw an opportunity to develop broadband internet at a lower cost by linking infrastructure such as wastewater and other city-owned plants together using fiber-optic networks.
The city faced challenges in running a startup business within the confines of a municipal system, including the requirement to seek bids for materials, which can be difficult with high demand for broadband materials globally. Despite this, the city has achieved success, with nearly 46% market share, exceeding its initial goal of 35%.
Anacortes is also exploring additional funding sources for broadband expansion, including federal grants and infrastructure legislation. The city hopes to entice customers away from commercial internet providers, with the project manager, Jim Lemberg, stating that capturing a third of the commercial market would make the project financially self-sustaining within 15 years.
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Frequently asked questions
Anacortes is building and operating its own municipal broadband company, Access Anacortes, to provide direct service to its residents.
The city of Anacortes is hoping to fund broadband expansion through a variety of sources, including federal grants and revenue from customers.
Washington state bills that came into effect in 2021 allow public utility districts and other public agencies to build broadband infrastructure and provide service directly to customers.
One challenge is that cities are required to put out requests for bids to find the lowest-cost materials, which can be difficult with increased demand for broadband materials worldwide.
