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Broadband Study for the Maine Off-Shore Islands Of

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Broadband Study for the Maine Off-Shore Islands Of Broadband Study for the Maine Off-Shore Islands of: Islesford, Great Cranberry, Sutton, Vinalhaven, North Haven, Monhegan, Matinicus, Frenchboro, Swan’s, Chebeague, Long Island, Isle Au Haut, Cliff, and Peaks Submitted to: The Island Institute Prepared by: Tilson 245 Commercial Street, Suite 203 Portland, ME 04101 Phone: 207-591-6427 E-mail: [email protected] Submitted: November 6, 2015 Note: Price and cost information included in the following report is an estimate based on recent quotes, historical data, assumptions about the project scope and approach, and the current regulatory environment and market conditions. Tilson recommends updating the estimates and allocating sufficient contingency to allow for changes in prices, costs, scope and market conditions as time passes. Tax estimates, where provided, are approximate. It is the responsibility of service providers to assess and collect taxes in accordance with local, state and federal law. Table of Contents Study Background .............................................................................................................1 Report Structure ...............................................................................................................1 Executive Summary ...........................................................................................................2 Defining Broadband ..........................................................................................................4 The Town of Cranberry Isles .............................................................................................8 Vinalhaven........................................................................................................................31 North Haven.....................................................................................................................45 Monhegan........................................................................................................................58 Matinicus..........................................................................................................................72 Frenchboro.......................................................................................................................88 Swan’s ............................................................................................................................102 Chebeague......................................................................................................................117 Long................................................................................................................................134 Isle Au Haut....................................................................................................................147 Cliff.................................................................................................................................161 Peaks..............................................................................................................................170 Island Cellular Service.....................................................................................................179 Service Offering Overview by Provider ..........................................................................180 Business Model Overview...............................................................................................183 Cost Savings Strategies...................................................................................................193 Economic Benefits Analysis.............................................................................................198 Appendix.........................................................................................................................A-1 Study Background Broadband represents one of the most effective ways to address the access challenges associated with island life. Superior connections can provide economic, educational, medical, and other benefits without the need for physical connectedness. As such, the Island Institute engaged Tilson to conduct a broadband study of thirteen of Maine’s year-round inhabited islands, plus Sutton Island. The objective of this study is to provide each island with information that will enable informed decisions as these communities move toward their goals. Components of the study included: • A community meeting to assess each community’s broadband related goals; • An inventory of current broadband assets and services; • A randomized survey of residents and businesses to measure broadband satisfaction, subscribership, and attitudes regarding new service; • High-level network design and cost estimates for various solutions that address the community standard; • Valuation of the economic benefits (improved GDP, job growth, tax base growth) associated with broadband improvements; • A summary of various community broadband projects in Maine and around the US; and • Analysis of potential operating and business models for serving Maine’s offshore islands. The islands included in this study are those of The Town of Cranberry Isles (Islesford, Great Cranberry Sutton), Vinalhaven, North Haven, Monhegan, Matinicus, Frenchboro, Swan’s, Chebeague, Long Island, Isle Au Haut, Cliff, and Peaks. The scope for Cliff and Peaks islands was narrower than the rest of the study and did not include an asset inventory, fiber design, economic benefits valuation, or a survey that was random (a survey was taken, but it was an opt-in online survey). The Cliff and Peaks scope however did include high-level capital cost estimates for a fiber solution. Report Structure The report is structured with an overview of broadband, sections for each municipality with findings specific to their island community, and sections at the conclusion of the report with information applicable to all island communities: options for improving cell phone service, service offering overview and pricing by broadband provider, a potential business models overview, opportunities for regional cost savings, economic benefits analysis, and in the appendix, a list of the islander comments received on each survey, by island.1 1 Tilson omitted portions of comments that contained personal contact information, which was shared by some respondents as an offer to provide additional insight. 1 Executive Summary Shared Goals. Many of the islands shared the same goals, including the goals of sustaining the year- round community by enabling telecommuting and attracting young families, ensuring access to government services and telemedicine, and maintaining geographic isolation while having access to important information and services. Educational goals were also common—ensuring that students of all ages have the ability to complete school assignments at home as well as at school. Different Inputs, Different Solutions. While there is a high level of consistency in the islands’ goals, there are wide variations in the islands’ current levels of service, the cost to implement a particular solution, and the ability to municipally or privately fund a solution. For a wireless Long Term Evolution (LTE) solution, an island with a large land mass or a lot of topographical relief would require a large number of expensive and visually obtrusive cell towers. A smaller island would not have that constraint. There are, however, opportunities for islands to collaborate in a solution. For example, multiple islands are served by the same municipal utility would be good candidates to share in a solution. Islands in close physical proximity could share microwave backhaul to lower costs or create redundant microwave links. Fiber to the Premise is an Expensive Long Term Solution That Requires a High Level of Buy-In. Of all the potential solutions to improve broadband access, a Fiber to the Premise (FTTP) solution offers the fastest speeds, is the only solution offering universal same-speed access, and has the least-cost projected upgrade path. However, the capital costs to deploy are very high, starting in the millions of dollars. The economics of running a FTTP network are such that there are high fixed operating costs independent of how many users are on the network. That means that very high adoption rates are key to keeping average cost per user, and therefore prices, down. Wireless LTE Has Current Limitations to Universal Coverage. Redzone’s wireless LTE technology, like today’s cell phone technology, is sensitive to obstructions like trees, buildings and land masses between the user and the antenna tower. For many of the islands, Redzone’s current technology requires multiple 150’ towers to provide close to 100% coverage. Redzone is currently testing wireless LTE small cells in the lab. Small cells technology will enable Redzone to mount fiber-fed antennas on the top of utility poles. These antennas will help fill in coverage gaps and obviate the need for multiple towers. ILEC Upgrades Provide a Gap Solution. Most of the communities rely on DSL technology from FairPoint or TDS, the incumbent local exchange carriers (ILECs) serving the islands. Both TDS and FairPoint have known DSL upgrades in process for four of the islands (Matinicus, Frenchboro, Isle Au Haut, and new service on Chebeague), which will provide improved residential access for users in close physical proximity to the ILEC infrastructure, plus better service in the schools and libraries. While DSL technology has limitations of lower overall speeds and service inconsistencies as a function
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