In communications, optical fibers allow pulses of light to be sent inside them, which make up information that can be converted on the other end into electrical information again. The small fibers are typically bundled together. While the lines can be difficult and costly to install, they have advantages over existing wires, like less interference and higher data rates.
By David Schueller
The Lake Minnetonka Communications Commission (LMCC) is hoping for a hefty bag of money from the American Recovery and Reinvestment Act to build a fiber optic network for Internet, television and phone services.
Because more than one provider could use the network, it would likely create competition, lower prices and add choices. In some of the LMCC's coverage area, there's only one land-based provider of high-speed cable services to chose from, and in other areas west of Lake Minnetonka, there is no such option.
The LMCC, which serves 21,000 households, is planning to apply for $47 million for the $60 million project.
LMCC Executive Director Sally Koenecke said the network would provide service to underserved cities like Independence, Medina, Minnetrista and Orono.
In addition, it could help stabilize rates, she said.
The LMCC once had control over the basic rate for cable, but Mediacom Communications Corp. sued and in 2003 won control of the rate by arguing that it had effective competition from satellite providers, Koenecke said.
"Which took control of the basic rate out of our hands. And they have raised the basic rate a number of times since then. And that gets to be a burden on the people who want the basic channels but can't afford it," Koenecke said.
It also means that according to a franchise agreement, only Mediacom can use the high speed line unless it allows other companies access to it. It hasn't, Koenecke said.
The LMCC's network would be built for its 17 member cities plus Mound, said Dick Woodruff, who chairs the committee that's studied building a fiber network for about a year.
Woodruff, a Shorewood City Council member (Ward 1), would not comment for this article but gave an update on the proposal at the July 13 Shorewood council meeting.
He said work toward the project took a "quantum leap" forward because of stimulus money approved by President Barack Obama and Congress - $7.2 billion will go toward broadband buildout around the U.S., he said.
The objective: Build a system that's analogous to roads, Woodruff said.
And also like roads, such a network is difficult and costly to build in the Lake Minnetonka area. There's a limited amount of land, an abundance of large lots and a relatively small subscriber base, Koenecke said.
"Because this area is around the lake it's difficult to build. And the subscriber base isn't huge. It's pretty modest. We haven't been successful in getting another company to compete," she said.
While there is fiber optic line in the area that's used by Mediacom, the connections to properties are generally through coaxial cable, which is aging, Koenecke said.
In areas that aren't served, wireless or dial-up become the two main options.
The speed of a fiber optics network would only be limited by the electronics that operate the network, Woodruff said.
The LMCC retained a consulting firm for $15,000 to study the buildout. If the plan fits the criteria, and gets the stimulus money, the LMCC would need to cover the remaining $13 million with revenue bonds.
While cities aren't being asked to contribute to the project, they were in recent weeks asked to support the project and allow right of way to be used.
The LMCC could face a challenge in trying to win stimulus dollars over other project applicants.
"It's going to be very tough competition," Koenecke said.
The LMCC would likely apply in either the fall of this year or the spring of 2010.
"The purpose is to get more competition going out here. It's something that the federal government is encouraging ... to try to get broadband everywhere," Koenecke said.
