Posts tagged with Wicked Broadband
Perhaps the community is learning what I've learned on many a white-knuckled trips from the passenger's seat of my wife's Ford Taurus: Speed isn't all it's cracked up to be.
An effort by a local company to bring super-fast Internet service to Lawrence hasn't yet taken off. Kris Adair, president of Lawrence's Wicked Broadband, told me the company's plans to bring 1 gigabit Internet service to a Lawrence neighborhood are uncertain at this point.
"We aren't seeing as much interest as we had expected," Adair said. "We're not giving up on it. We still think it is an amazing project, but we have to have the community buy-in to know that it will be financially feasible."
Wicked Broadband, which is an outgrowth of the former service Lawrence Freenet, announced in April that it was launching a pilot project to bring 1 gigabit service to at least one Lawrence neighborhood this year. The 1 gigabit service is the same kind being installed as part of the Google Fiber project in Kansas City. Just like Google in Kansas City, the neighborhood would be chosen based on how many residents in a particular neighborhood pre-registered for service. Wicked leaders said they planned to announce a winner on June 15.
But Wicked officials pushed that date back to Aug. 15 when it was clear that not enough people had pre-registered in any neighborhood. The Aug. 15 deadline also came and went without an announcement. Adair told me just before the deadline that the company now hopes to make a decision in September. That decision, however, may be that there is not a neighborhood in Lawrence that is viable for the service currently.
"We're definitely not as close as we would like," Adair said. "We probably need another 40 or 50 households in most neighborhoods to say they are interested."
On its Web site, the company has a listing of pre-registration totals for each neighborhood. It appears that only one neighborhood in the city, the Centennial neighborhood near Lawrence High, has more than 25 households pre-registered. But Wicked estimates that the neighborhood still needs 48 more households or businesses to sign up before it seriously can be considered a candidate for the pilot project.
The neighborhood closest to being feasible is the area around Hillcrest Elementary, just northeast of 15th and Iowa streets. It needs another 24 households to be in the running. (Wicked uses the city's voting precincts to define neighborhood boundaries. Even though the Hillcrest neighborhood doesn't have as many people signed up as Centennial, the percentage of households that have signed up is higher.)
The 1 gigabit Internet service is attracting a lot of attention in Kansas City. The service is being used by people interested in seamless video streaming, video game aficionados and, perhaps most importantly from and economic development standpoint, Internet start-up companies looking to create new applications for the Web.
It wouldn't be fair to say that Lawrence is uninterested in super-fast Internet service. Rather, it may be that the interest is just too spread out. According to Wicked's totals, almost every neighborhood in the city has had households or businesses pre-register for the service. Most areas, though, have had 10 or fewer households. Adair said information out of Kansas City is that once a neighborhood is selected, another 20 percent of households will go ahead and sign up for the service. But Wicked needs a certain density of customers to make the service viable, and thus far no neighborhood has reached that level.
"It is a significant investment, and we really want to make sure the community is interested," Adair said of Wicked's hesitancy to pick a neighborhood.
Households and businesses that have pre-registered have been required to put down a $10 deposit. Adair said those deposits will be refunded if the neighborhood is not chosen.
Also in limbo is the company's request for a $500,000 grant from the city to help bring the high-speed Internet service to Lawrence. Adair said the company hasn't withdrawn the grant request, but that it would not take money from the city unless the project starts to show more interest from the community.
Adair, who also is a Lawrence school board member, said she is not sure what to make of the less-than-expected interest in the service.
"We have been doing a social media blitz but it is not reaching them, or maybe they just aren't as interested as we think they are," Adair said.
We'll see what September brings for the project. As for what it will bring to the passenger's seat of the Taurus, I predict it will produce more white knuckles and an occasional black out.
The changes keep on coming in the Lawrence Internet market.
The largest Internet service provider in Lawrence has just announced that it is removing all of its usage caps from its Internet service packages, as the company changes its name from Knology to WOW! That means customers no longer will be charged for going over their usage limits, according to a press release by the company.
Englewood, Colo.-based WOW purchased Knology back in July, but it had not converted Knology over to the WOW brand until today. Signs for the company around town are being changed today, according to WOW.
But the changes related to Internet usage caps are likely to garner more attention from hard-core Internet users. The caps had generated concern among many users because customers’ standard monthly rates could rise depending on how much Internet usage they had in a particular month.
The change in the cap policy comes at a time when both private and public officials have been talking about shaking up the city’s Internet service provider market.
A city-hired consultant recently completed a report that found that current broadband offerings in Lawrence generally are “costlier, slower and more limited than in other comparable communities.” City officials had the report commissioned because they have been interested in possibly allowing private companies to have access to a growing ring of fiber optic cable owned by the city.
On the private front, Lawrence-based Wicked Broadband — formerly known as Lawrence Freenet — has made a proposal to the city to further tap into that ring of fiber. (Ring of Fiber: Johnny Cash used to sing that song in his old age.)
At their meeting tonight, city commissioners will receive a request from Wicked for low-cost fiber leases with the city, and a one-time $500,000 grant to help the company build new broadband infrastructure in the city. The request is part of a pilot project Wicked is launching to bring to one Lawrence neighborhood the same type of superfast Internet service that Google Fiber is bringing to Kansas City. If successful, Wicked Broadband wants to extend the high-speed broadband project to all of the city.
So, we’ll see what cards the folks at WOW start playing in what appears to be an increasingly competitive game in Lawrence. Consumers, I suspect, will be keeping an eye on whether the competition starts having an impact on rates.
Wicked Broadband project seeks $500,000 city grant; downtown hotel project seeks adjustment to incentives package; historical society seeks $20k for new exhibit
Reading the agenda for Tuesday night’s Lawrence City Commission meeting is kind of like reading my household’s credit card bill: There are plenty of questions, and all the answers seem to have dollar signs.
There are three outside organizations requesting financial assistance from the city, with two of them each asking for a half-million dollars.
We’ll try to fill in more details later, but here’s a look at the basics of the requests:
• Lawrence-based Wicked Broadband announced last month that it will start a pilot project to bring super fast 1-Gigabit Internet service to a neighborhood later this year.
A kick-off event for the project spelled out a lot of details about how the company, which previously did business as Lawrence Freenet, could bring the same type of high-speed Internet service to Lawrence that Google Fiber is bringing to Kansas City. At that event, the idea of financial incentives from the city wasn’t envisioned. Well, it is now.
The company has filed an application for a $500,000 economic development grant from the city, plus is asking to receive up to a $20,000 a year rebate in franchise fees it pays to the city. It also wants to have the right to enter into $10 per year leases to use a portion of new fiber optic cables that the city plans to install throughout the community in future years.
Joshua Montgomery, co-owner of Wicked Broadband, said there are several factors that have caused him to rethink the need for city incentives for the project. But perhaps the largest is that he’s been contacted by several significant New York-based capital investment companies that are interested in investing in a locally owned, high-speed Internet service. Those investors have made it clear that the city of Lawrence needs to do something to show that it is committed to the idea of bringing a high-speed network to the city.
“If the city says that it is behind it 100 percent, that opens the door for the next $30 million in private funding that will be needed to spread this service to the rest of the community,” Montgomery said.
Montgomery said the $500,000, one-time grant would allow the service territory for the pilot project to grow to 1,000 households, up from 500. The neighborhood or neighborhoods haven’t been selected yet. Wicked is taking pre-registrations for the service on its website. The neighborhood with the highest percentage of residents pre-registered will serve as the pilot project. An announcement is expected June 15.
Montgomery said he and his business partner and wife, Lawrence school board member Kris Adair, are putting up $500,000 in private money for the pilot project.
City commissioners on Tuesday aren’t being asked to approve the request. Instead, Tuesday’s vote is just to direct city staff to begin analyzing it.
Wicked Broadband’s service will be a direct competitor to existing Internet providers, such as Knology and AT&T, which generally do not receive such city subsidies. So, it will be interesting to hear what those companies have to say as the process unfolds.
As for Montgomery, he said he’ll argue that the city won’t be making an investment in a private company as much as it will be making an investment in a new infrastructure system that will be critical to future commerce. “It is an economic enabler,” Montgomery said.
The second request comes from a group led by Lawrence businessman Doug Compton, which is seeking to build a new hotel at the southeast corner of Ninth and New Hampshire.
It is a bit more complicated to understand, and I’ll try to get a better handle on the numbers before Tuesday’s meeting. But the request seeks to raise the amount of Tax Increment Finance dollars the hotel is eligible to receive to $4 million, up from $3.5 million.
Unlike the Wicked Broadband request, this doesn’t involve the city writing a $500,000 check to the development. Instead, a TIF allows the project to get a rebate on a certain percentage of the property taxes it pays. It is kind of like a tax abatement, except the money has to be used to pay for infrastructure type of expenses. In this case, that includes a private parking garage for the hotel.
What makes it a bit complicated is that the developers also have proposed a multistory apartment/office project for the northeast corner of the intersection. It also uses Tax Increment Financing. It looks like a likely option is to increase the amount of TIF money available for the southeast corner hotel project by reducing the amount of projected TIF revenues available to the northeast corner apartment project.
If that is ultimately what happens, then the overall amount of incentive basically would be a wash. We’ll have to see how those details work out.
The more interesting part is what developers have said about the hotel project. It has had its necessary building approvals for months, but hasn’t yet started construction. A letter to the city now makes it clear that there are financial questions the investors are trying to answer.
Bill Fleming, an attorney for the development group, told the city in a letter that “the hotel investors are keenly interested in the ‘cost per key,’ which is the average cost for each hotel room.”
If the additional $500,000 in TIF money is not available to the hotel project, then that will raise the average cost per room the investors must pay.
“The investors may conclude the project is not feasible at that cost per key, and the project in that case will not proceed,” Fleming wrote.
That would be a major turn of events for the project, which faced stiff opposition from the adjacent East Lawrence neighborhood, and had to fight hard to win city approval.
Maybe the folks at the Douglas County Historical Society are more than just masters of history. Perhaps they also are masters of timing. After those two big-ticket items, they are asking for a mere $20,000 in city funding. The money will be used to help fund a permanent exhibit on the second floor of the Watkins Museum commemorating the 150th anniversary of Quantrill’s raid on Lawrence.
The new exhibit is set to open on Aug. 17, and will “explore Douglas County’s history, issues that shaped the development of the community, and events that made it a focus of national attention.”
Ultimately, the exhibit will be expanded to the third floor of the museum. The bulk of the nearly $257,000 in exhibit costs has come from private individuals, businesses and grants.
City staff members are recommending approval of the $20,000 in funding. The money would come from the city’s guest tax fund, which receives its revenue from the guest tax charged at hotel and motel rooms.
Commissioners meet at 6:35 p.m. Tuesday.
Costlier, slower, more limited: It is bringing back memories of the teacher comment section on my report cards.
Well, this is a report card of sorts, and "costlier, slower, more limited" is the key phrase in a new study of the city’s Internet broadband market. A consulting team hired by Lawrence City Hall found that the current broadband offerings in Lawrence generally are “costlier, slower and more limited than in other comparable communities.”
Fixing that situation, however, won’t be easy. Every once in a while the idea of the city owning and operating its own high-speed Internet broadband network is brought up. In other words, the city would jump into the Internet service provider market, and compete with the likes of Knology, AT&T and others. But the city would do it with high-speed, fiber-optic cable that runs directly to homes and businesses, as opposed to the slower, more traditional copper telephone and cable lines that serve much of Lawrence.
The idea is a recurring dream for technology geeks. But the latest numbers indicate it may be nothing more than a dream for quite some time. The consultants, CTC Technology & Energy, estimate that it will cost upwards of $70 million to build and deploy such a system in the city. That’s not an impossible number — it's about $25 million more than what the city is spending for a library and a recreation center — but the consultants are urging caution in the matter. Their analysis indicates the city would have to capture at least 50 percent of the entire market share in Lawrence to break even. That would be a tough number to reach, the consultants predict.
But there are other ways the city can make itself a more desirable high-speed Internet city – which not surprisingly, the consultants said will be very important in the future. Here’s a look at some of the recommendations:
• The city could spend around $320,000 to $640,000 to complete a 17-mile ring of fiber-optic cable around the city. The fiber would allow city, county, school and university facilities access to higher-speed Internet connections. The consultants say that alone is worth the cost of the project. But if built in the right way, excess capacity on the fiber ring could be leased out to private companies that have an interest in competing against the two large Internet providers in the city — AT&T and Knology. The report found there are at least three companies that have expressed an interest in such an idea: Level 3, Kansas Fiber Network and Wicked Broadband, which already leases some fiber from the city.
• New development regulations could be written that would require builders to install more fiber-optic infrastructure as a part of their projects. Loma Linda, Calif., has created development regulations that require “cable pathways, fiber connections and internal fiber wiring” be installed as part of any major residential or commercial building project. Sandy, Ore., goes even further. It requires developers to install conduit all the way from the public right-of-way to the home, and then deed that conduit to the city. The idea is that when fiber-optic projects reach a neighborhood, the most expensive part of the process already will be complete, courtesy of developers. The report estimates any new regulations would be a “small burden” to developers. We would see about that, but usually new regulations for developers produce something a bit larger than a “small debate” at City Hall.
• Sucking up to Google may be a good idea. The Google Fiber project in Kansas City is all the buzz in the tech world. The consultants said the city should at least make a more serious effort to have Google consider expanding the project to Lawrence. Google recently did announce that it was expanding the service to Olathe. The consultants reached out to the community manager for the Google Fiber project, and she asked that the city send a formal letter of interest to enter into discussions with Google about an expansion.
As for what the report had to say about Lawrence’s existing broadband providers, it wasn’t much different than what many ordinary folks say. The report found AT&T’s offerings are more limited than in several other comparable communities. With Knology, the consultants found the company’s base pricing is reasonably competitive with other markets, but its use of data caps on many plans makes it less competitive. The report didn’t provide any analysis of the recently-announced pilot project by Wicked Broadband to extend fiber to at least one neighborhood in Lawrence.
The report made several other recommendations and findings, but they were of a technical nature that went beyond my “costlier, slower and more limited” mind.
City commissioners will get a chance to digest the report soon. The City Commission is expected to formally receive the report and discuss possible next steps in the next several weeks.
It is fair to say that there already has been quite a bit of pot-stirring lately when it comes to providers of high-speed Internet service in Lawrence.
First, The World Company (the parent company of this Web site) sells Sunflower Broadband — the longtime, locally owned dominant provider of Internet service in the city — to Knology. Then, Knology sells itself to Colorado-based Wide Open West, which apparently has marketing people who drink a lot of caffeine because it officially goes by the name WOW!. Just to keep you on your toes, though, Knology hasn’t yet changed its name to WOW! here in Lawrence.
Meanwhile, the Internet provider Lawrence Freenet changed its name to Wicked Broadband and has begun expanding its service. (Its marketing people must drink whatever you drink while watching a marathon of the Wizard of Oz, because its tagline is “faster than a flock of flying monkeys.”)
And speaking of flying monkeys, there is Google. (That’s how they get all those search engine results, you know.) The world’s new corporate giant picked Kansas City, Kan., and then Kansas City, Mo., to launch its Google Fiber project, which promises to bring Internet service that is so fast that my wife would be able to deplete the entire inventories of online shopping sites with the single push of a button. The proximity of that project generated chatter in Lawrence about what it needs to do to keep up with the Jones of the broadband world.
Well, it is still a bit early to say that the pot is about to be stirred again — but there is an entity out there that is fiddling with the spoon. You may be surprised who it is: the city of Lawrence.
When it comes to valuable infrastructure, the city these days owns far more than roads, waterlines, parks and such. It also has large amounts of fiber optic cable or underground conduits to accept fiber optic cable.
At their Tuesday evening meeting, city commissioners will be asked to begin advertising for a consultant that can help the city determine how to best leverage its valuable fiber optic holdings.
What that will lead to is still uncertain. But a city staff memo points to a recent initiative in Seattle as an example of what other cities are trying to do with their fiber optic networks. One of the goals in Seattle is to increase competition among service providers.
It will be interesting to see if the city uses its fiber optic network in a way designed to lower the price of broadband services in the city. I don’t even know how the price of broadband services in Lawrence stack up to those in other communities. But I bet you tech companies thinking about moving to this area do.
The city already has been playing that game a bit. The folks at Wicked Broadband — mostly when it was Lawrence Freenet — have used city infrastructure to expand their service in town. The city and Wicked have an agreement that says Wicked will make efforts to provide low-cost Internet service to people who can’t afford it. According to the company’s Web site, 10 percent of a customer’s monthly service fee “helps bring Internet access to low-income households.”
The city has a fiber optic network or conduit that stretches all the way to Tee Pee Junction in North Lawrence to 23rd and Iowa in south Lawrence to the East Hills Business Park in eastern Lawrence and to west of the Sixth Street and South Lawrence Trafficway in west Lawrence.
But the city also wants a consultant to look at all the traffic signals, light poles, water towers and other city-owned structures that could accommodate equipment for wireless Internet service. Does the city have the infrastructure in place to create a wireless Internet cloud over the city? Given that until recently I kept going to The Raven to try to buy this Facebook everybody was talking about, I’m not the guy to ask. But a city-hired consultant is. We’ll get a read on Tuesday about how serious city commissioners are about being tech players in the community.