Wednesday, April 14, 2021

Breaking the Gigabyte Barrier on the Key Peninsula; Not So Wild a Dream (Peninsula Gateway, Gig Harbor, WA – Paywall Advisory)


Poor internet service on the Key Peninsula is legendary, and nearly everyone has a horror story— streaming video that stutters and balks, homework that takes an hour to download, new connections that can’t be had for love or money.

The coronavirus pandemic has made the situation worse, as hundreds of students and teachers try to use the same creaking old copper-wire system at the same time.

“It was impossible,” said Cindy Greetham, who was trying to teach 20 fourth-graders by Zoom from her waterfront house near Home. “The screen would freeze. I couldn’t hear them. They couldn’t hear me. Half the time, I would get a band across the screen that said, ‘the internet is unstable.’ “

Now, however, because of an unusual confluence of events — including, ironically. the pandemic itself— the digital logjam on the Key Peninsula may be about to break.

Pierce County is pondering a multi-million-dollar effort to extend broadband in rural areas. Bills are coursing through the state legislature. A pot of federal money is about to roll downhill from the CARES and other acts. Satellite companies are getting into the act. Utilities in neighboring counties are sizing up the possibilities.

Even the local electric co-op, Peninsula Light Co., is taking a look —somewhat reluctantly— at getting involved.

“What we discovered during the pandemic is that broadband has become an essential commodity,” said Mark Cockerill, a director of the Key Peninsula Community Council and leader of its Broadband Project. “It ranks right up there with electricity, food and shelter.”

Derek Young, the area’s member for the Pierce County Council, calls broadband “the rural electrification for our generation.”

“I’ve got constituents who go the parking lot at Burger King for wi-fi because they can’t get internet access at home,” he said. “We owe it to this generation to make sure they can thrive and compete in today’s market.”

Young said Pierce County is looking to commit $20 million to $30 million “immediately” to roll out broadband fiber optics “countywide as far as we can get it.”

“We’ve had conversations with possible providers in the past, but we’ve never had the wherewithall to make them real,” he said. “Now we’ve got real cash to invest, and these conversations are going to get real.”

Lagging Speeds

The FCC considers 25 megabytes per second (Mbs) the minimum for “good” internet service and recommends 100 Mbs for high-intensity uses like two-video and video streaming. In big cities, “gigabit internet,” or speeds of 1 gigabyte per second (Gbs), are becoming common.

But a survey the Key Peninsula council took last year found that 55 percent of KP residents who responded had internet speeds of less than 11 Mbs, and 36 percent had less than 6 Mbs. A few users reported speeds below 1 Mbs.

The problem is that most of the internet connections on the Key Peninsula are made over painfully slow copper lines left over from the old telephone system. The provider, Century Link, has made it clear it has no interest in upgrading to faster fiber optic cables. It will not pay, the company says, because it’s a rural area with too much distance between customers.

“it’s the same problem they had in the 1930s with rural electrification, said Bob Hunter, general manager of the neighboring Kitsap PUD. “Because it doesn’t pay, private companies won’t do it.”

The copper-wire system, called Digital Subscriber Line, or DSL, uses higher, inaudible frequencies to carry the bleeps and bloops of digital information over the telephone lines, along with conversations. Once cutting-edge technology, it’s now considered hopelessly obsolete. Speeds top out at about 25 Mbs, but in practice seldom reach even that.

What’s more, DSL speed is dependent on the number of users on the line. The analogy is not perfect, but it’s somewhat like sharing a water line — when everyone’s faucet is open, the water pressure drops.

“The first house does fine, but by the time you get to the end of the street, there’s nothing left at all,” said Cockerill.

Broadband Deserts

The Key Peninsula is 16 miles long and is home to about 16,000 people in communities like Wauna, Key Center, Vaughn, Home, Lakebay, and Longbranch. Most are served by Centurylink, with a small area bordering Mason County served by Comcast.

Two areas — one north and west of Vaughn, and the other near Longbranch — have no internet service at all, and no one willing to bring it, said Kris Hagel, executive director of digital learning at the Peninsula School District.

“It’s a big problem for us, especially when children have to learn from home,” Hagel said.

At the height of this school closure last winter, the parking lots at Vaughn and Evergreen elementary schools were full of cars in the dark of the night, as parents and students with laptops used the school wi-fi to access their lessons.

In the Greetham home, things were pretty desperate. Both Cindy Greetham and her husband, Jim, teach in the Peninsula School District, and their daughter, Ann, 20, was home from college, so there was a lively competition among laptops. When all three needed to use the internet at once, it simply swooned away.

Several times a week, Cindy need to upload a 10-minute video for her students. But the DSL service is asymmetric — it’s designed to be faster down than up.

“It would take me seven hours to upload a 10-minute video,” she recalled. “Sometimes I would let my Mac run overnight, and it would still be working in the morning.”

Eventually, the Greethams got a wi-fi hotspot from the school district, one of more than 500 Kris Hagel and his team scattered around the peninsula. Some 50 of the district’s school buses were also equipped with hot spots, which pluck their internet signal from cellphone towers.

Peninsula Light Is Wary

Pierce County commissioned a study, unveiled last month, that examined satellite, over-the-air wi-fi and several other technologies, and concluded that fiber-optic cable — known as “fiber to the premises” — is the most practical solution. Fiber-optic cable is actually cheaper to string than copper — it costs between $8,500 and $10,000 a mile. But who will string it?

The county’s consultants, CTC Technology and Energy, reported that both Century Link and Comcast demanded heavy subsidies to bring fiber-optic cable to the Key Peninsula. Century Link wanted a 65 to 75 percent subsidy; Comcast offered to serve 525 more homes in the northern part of the peninsula, but said it would require a $2 million subsidy to do so.

Inevitably, in nearly every conversation among experts, the name of the Peninsula Light Co. comes up The Gig Harbor-based electrical cooperative owns nearly 6,000 poles and 130 miles of overhead wires on the Key Peninsula.

“It would obviously be the best solution,” Cockerill said, and others agree.

“In terms of stringing fiber, having a partner like PenLight would be ideal” said Young.

But the co-op is skittish about getting outside its area of expertise.

“We’re an electric and water utility, and that’s what we do,” said Ryan Redmond, PenLight’s chief resources officer. “Right now, we’re listening. We are interested in what we can do to help, but that doesn’t mean we’re going into the broadband business.”

Utility insiders are painfully aware of what happened to Tacoma Public Utilities, which used excess capacity on its meter-reading fiber network to start the cable provider Click!. Although Click! was popular with customers — and forced its commercial competitor to improve service and lower prices — it never made money, and was eventually forced to privatize.

Two Nearby Models

But just over the county line are two similar public utilities that have made the leap into broadband successfully, using a public-private model that sidesteps the Click! conundrum

Both Mason County PUD and Kitsap County PUD offer their members high-speed broadband over fiber-optic cable. The utilities own the cable, but lease capacity on it to private internet service providers who compete among themselves for customers.

It was at first a case of strange bedfellows.

“We were strictly a water and sewer utility,” explained Bob Hunter, the Kitsap PUD general manager, “We got into telecom back in 2000 to solve a telephone problem — there were three different phone companies, and it was long-distance to call from Poulsbo to Port Orchard, or from Port Orchard to Kingston.”

The PUD build a fiber-optic network to connect “anchor institutions,” like the courthouse, the school district and its own substations,.

“By 2016, people who worked in these places were asking us, ‘Hey, why can’t we have this at home?’“ Hunter said. “They told us, ‘We’ll pay for it if you build it.’”

Gigabyte Internet

To finance the build-out, Kitsap PUD sought loans from investors that could be amortized over 20 years. Homeowners who sign up can pay off the cost — up to $10,000 a home — through a yearly assessment by the county, averaging about $150 a month. In addition, they pay their chosen ISP $75 a month for internet service.

In return, customers get “Gigabyte internet” — speeds of 1 GBs, both up and down. They can choose from among five internet providers, and switch among them at any time.

Hunter is first to admit the solution is not cheap. “People have called it ‘Internet for the rich,’” he said. “I call it ‘Internet for those who can afford it.’“ Still, he said, it’s a first step.

Mason PUD, to the south, uses a variation on the same system. Begun as an electrical utility in the 1930s, Mason PUD got into fiber to connect its own substations.

“Then people began asking us to serve them, too,” said Lynn Eaton, the utility’s communications manager, “Well, that’s the whole reason PUDs exist in the first place, going back to rural electrification. So we feel it is our duty to fill that need.”

Mason PUD has built out wherever it can find a critical mass of demand, in what it calls “fiberhoods.”

“We set up a model that has a 12-year payback time. There’s a $25-a-month construction add-on, in addition to the ISP cost. We don’t build until 75% of the residents of an area say they want it, and they only pay if they take the service.”

As in Kitsap, Mason PUD customers have their choice of several private service providers, and can switch among them at will.

“It’s been really successful for us, but it’s a long road,” Eaton said.

Federal Money, With a Hitch

Federal funding can help smooth out the inequalities in broadband access, and there are literally billions of dollars ready to pour forth for that purpose from the CARES act and President Joe Biden’s big infrastructure bill.

Under Biden’s American Rescue Plan, the Department of Commerce, for instance, would be given $3 billion in additional for funding for public works and infrastructure; the Treasury Capital Projects fund, $10 billion; the FCC’s Emergency Connectivity Fund, $10 billion; rural community development block grants, $45 billion, and so forth.

But there’s a catch: most of the money is intended for “retail” providers, and Washington State has a law — championed by Comcast — that prohibits PUDs from providing retail service — that is, selling directly to consumers.

“PUDS are not really interested in retail,” said Mason PUD’s Hunter. “We think the open access system we are using, with private partners, works just fine. But without what’s called ‘retail authority,’ we can’t access the billions of dollars that’s going to be available in federal funding.”

A bill giving PUDs that authority — HB 1336, sponsored by Rep. Drew Hanson of Bainbridge Island — was approved on Sunday by the state Legislature.

Hugh Taylor, the principal policy analyst for Pierce County, said the county has basically identified the technical issues and the key players — including PenLight — and is now concentrating on “getting them to talk to each other.”

County May Take Charge

Derek Young, the county council member, told The Gateway on Monday that Pierce County has asked its technical consultant to explore whether the county itself should take charge of wiring under-served areas for broadband.

“If that’s the case, we’re going to push forward on that,” he said. “If not, we’re going to look to partners like PenLight or others.”

It’s not just a Key Peninsula problem, Young noted.

“We have areas all over the county which are either not served at all, or where people are paying a lot of money for very poor service.”

An example, he said, is Frederickson, which is the county’s manufacturing and industrial center.

“We lose customers daily, because they find out they can’t get broadband internet,” Young said. “This are big industrial users who need to upload terrabytes of data. They’re not going to be satisfied with DSL on copper wires.”

Help from Kitsap?

Hunter of Kitsap PUD, who says he started out strictly a “water and sewer guy,” is now an enthusiastic evangelist for broadband.

“I understand utilities that don’t want to get into this business,” he said, “But at the end of the day, we work for the public. People started petitioning us to do this, and I can tell you, there’s nothing more powerful than hearing from the people you serve.”

The Hanson bill just passed in the Legislature includes language that would allow PUDs from other counties to serve Pierce County customers, and Hunter says his utility might be interested.

If the financing could be put together, Hunter said, Kitsap PUD would be willing to undertake the job of installing a fiber-optic backbone for the Key Peninsula and run it for a few years, providing he could turn it over to a local utility once it were up and running.

“The first thing I would want to do,” he said, “Is have a meeting with PenLight.”